DallasNews Corp's Q4 2024: Navigating Contradictions in Print Ads, Digital Growth, and Margins

These are the key contradictions discussed in DallasNews Corporation's latest 2024Q4 earnings call, specifically including: Print Advertising Trends, Digital Subscription Growth, Digital Volume Circulation, and Digital Margins:



Revenue Decline and Operational Adjustments:
- DallasNews Corporation reported $31.1 million in total revenue for Q4 2024, down from $34 million in Q4 2023.
- The decline was primarily due to a 16.6% decrease in print advertising revenue and a $700,000 decline in print circulation revenue, which included $200,000 from single-copy sales for the Texas Rangers winning the 2023 World Series.

Operating Expense Reduction and Pension Funding:
- The company achieved total adjusted operating expenses of $32.4 million for Q4, an improvement of $1 million year-over-year, driven by savings in employee compensation and benefits and newsprint costs.
- These savings will enable the company to fully fund its pension plan, contributing between $14 million and $16 million before the end of the second quarter.

Digital Subscriber Growth and Strategy Adjustment:
- DallasNews reported 64,334 digital-only subscribers, an increase of 1,334 or 2.1% compared to the previous year.
- The company shifted its digital subscription strategy in Q3 2024 to focus on increasing volume rather than pricing, leading to the strongest digital subscriber growth in eight quarters.

Print Production Transition and Property Sale:
- The company transitioned its print operations to a smaller, more efficient facility, resulting in over $5 million in annualized expense savings starting in 2025.
- The sale of the Plano property for $43.5 million provided capital for pension funding and strengthened the company's balance sheet.