Dallasnews Corporation ((DALN)) has held its Q4 earnings call. Read on for the main highlights of the call.
Despite facing significant revenue declines and challenges in advertising and circulation, DallasNews Corporation has shown improvements in net income, expense savings, and digital subscriber growth. The successful sale of the Plano property and impactful journalism efforts further highlight positive strides. However, the financial decline in core revenue streams remains a concern.
Net Income and Operating Improvement
DallasNews Corporation reported a net income of $4 million for Q4 2024, a notable turnaround from a net loss of $2.2 million in Q4 2023. The company also improved its operating loss from $2.5 million to $1.8 million, indicating better financial management and operational efficiency.
Successful Sale of Plano Property
The company successfully sold its Plano facility for $43.5 million. This sale has provided DallasNews with the capital needed to fully fund its pension plan, securing retirement benefits for 1,300 employees and strengthening its financial position.
Expense Savings Achieved
DallasNews achieved $15.4 million in expense savings for the year, primarily through reductions in employee compensation, distribution, and newsprint costs. These savings have contributed significantly to the company’s improved financial performance.
Digital Subscriber Growth
Digital-only subscribers increased by 1,334 or 2.1% year-over-year, with a strong Q4 volume growth of 3,119 subscribers. This growth reflects the company’s successful efforts to expand its digital presence and attract more online readers.
Journalistic Impact
An investigative series by DallasNews led to policy changes in Dallas, ensuring paramedics have blood supplies. This highlights the social impact and importance of the company’s journalism efforts, reinforcing its commitment to impactful reporting.
Revenue Decline
Total revenue decreased from $34 million in Q4 2023 to $31.1 million in Q4 2024, with full-year revenue dropping from $139.7 million in 2023 to $125.4 million in 2024. This decline underscores the challenges the company faces in maintaining its revenue streams.
Advertising Revenue Drop
Advertising and marketing services revenue decreased by $11.1 million or 18.9% year-over-year, largely due to discontinued product lines. This significant drop highlights the ongoing challenges in the advertising sector.
Circulation Revenue Decline
Circulation revenue decreased by $500,000 due to a decline in print circulation. This reflects the broader industry trend of declining print media consumption.
Print Advertising Challenges
Print advertising revenue saw a decline of $1.1 million or 6% in Q4 2024 compared to the same period last year. This further emphasizes the challenges faced by traditional print advertising in the current media landscape.
Forward-Looking Guidance
Looking ahead, DallasNews plans to focus on digital subscriber growth, product enhancements, and the continued excellence of its journalism. The company aims to leverage its recent financial improvements and property sale to strengthen its position in the digital media landscape and secure the retirement benefits of its employees.
In summary, while DallasNews Corporation faces significant challenges in its core revenue streams, the company has made notable strides in improving its net income, achieving expense savings, and growing its digital subscriber base. The successful sale of the Plano property and impactful journalism efforts further underscore the company’s positive momentum. However, the decline in advertising and circulation revenues remains a critical concern moving forward.