A publisher of newspaper and digital news covering 72 markets in 25 states across the U.S., Lee Enterprises (NASDAQ: LEE) experienced a “cyber security incident” in February that had a “significant impact on our quarterly operating results,” including $2 million in expenses for “restoration costs,” according to a release from the company. The company has filed a cyber insurance claim for the $2 million and believes much of the cost will be covered, according to a company executive on the firm’s quarterly investor call.
Additional Expenses After Claim for “Technical Recovery”
The company noted the $2 million to restore operations reflected only some of the loss from the incident. “On the subscription side, our normal process for activating new digital subscribers was hampered,” the company noted in the release, also disclosing “second quarter advertising revenue was impacted…” “(T)he incident’s impacts on the company’s ability to bill customers and pay vendors will continue to affect Lee’s balance sheet through the end of the fiscal year,” added the executive on the investor call, according to a report in The Cardinal News.
Unclear is the total of losses above “technical recovery” expenses and whether Lee has filed a cyber insurance claim for those additional costs. We’ll provide more details if and when they’re available. Related: See our recent report on 2024 cyber insurance claims.
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