How did DallasNews manage to reduce selling expenses while increasing operating profit in Q2 2024?

DallasNews Corporation reduced its selling, general, and administrative expenses to $15.15 million in Q2 2024, down from the previous quarter's unspecified amount, and simultaneously increased its operating income to $568,000. This financial improvement was achieved through strategic cost management and digital growth initiatives:

1. **Strategic Cost Management**: The company implemented expense savings of $2.5 million in distribution, $1.6 million in employee compensation and benefits, and $0.9 million in newsprint. These reductions were likely achieved through streamlined operations, renegotiated contracts, and improved internal efficiencies.
2. **Digital Growth Initiatives**: Despite a decline in digital-only subscribers, the company saw a 25.2% increase in digital-only subscription revenue, which contributed to the revenue growth. This indicates a successful monetization of digital content, which is less reliant on the costly print distribution model.
3. **Relocation of Print Operations**: The announcement to relocate and streamline print operations into a smaller facility is expected to result in approximately $5 million in annualized operating expense savings. This strategic move aligns with the company's Return to Growth Plan and is a key factor in improving profitability.

In summary, DallasNews managed to reduce selling expenses and increase operating profit by implementing strategic cost management measures, focusing on digital growth, and relocating print operations to a smaller facility. These initiatives collectively contributed to the company's improved financial performance in Q2 2024.