Print advertising revenue decline, digital subscription growth strategy and outcomes, pension funding and cash flow impact, digital revenue growth strategy are the key contradictions discussed in Dallas News's latest 2025Q1 earnings call.
Financial Performance and Pension Funding:
-
reported a
net income of
$28.3 million, or
$5.28 per share, for Q1 2025, a significant improvement compared to Q1 2024.
- The company successfully funded its pension plan using
$10 million in company funds along with
$132 million in planned assets, meeting its retirement obligations.
- These results were positively impacted by the sale of the Plano printing facility and the transition to a smaller, more efficient lease facility.
Revenue and Adjusted Operating Loss:
- Total
revenue for Q1 2025 was
$29.1 million, a decrease of
$2 million compared to Q1 2024.
- On a non-GAAP basis, the adjusted
operating loss decreased by
$400,000 to
$1.2 million.
- The decline in revenue was primarily due to a decrease in advertising and marketing services, while operating expenses improved due to employee compensation and benefits savings.
Digital Membership and Subscription Growth:
- Digital-only subscriptions reached
65,028, reflecting an increase of
1.1% compared to December 31, 2024, and
4.2% compared to March 2024.
- The company implemented a new dynamic paywall, which has resulted in a
16% increase in subscription starts.
- Slower-than-expected growth in digital membership is being addressed by testing more aggressive promotions and offers.
Print Advertising and Economic Conditions:
- Print advertising revenue declined by
$700,000 or
12.2%, primarily due to economic uncertainty affecting client advertising budgets.
- Softness in print advertising was most notable in real estate and retail categories.
- The company is monitoring economic changes and tariffs to determine their impact on client budgets and printing cost efficiencies.
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