Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DallasNews Corp (DALN, Financial) reported an improvement in adjusted operating loss, reducing it by $200,000 compared to the previous year.
- The company achieved expense savings of $3.5 million, driven by reductions in distribution, employee compensation, and newsprint costs.
- Digital-only subscription rates increased by approximately 13.5%, helping to offset declines in digital subscribers.
- The transition to a new printing facility is expected to result in significant annual expense savings, contributing to the company's return to growth plan.
- DallasNews Corp (DALN) maintains a strong balance sheet with no debt and a cash balance of $11.6 million as of November 8.
Negative Points
- DallasNews Corp (DALN) reported a net loss of $3.9 million for the quarter, an increase from the $1.4 million loss in the same period last year.
- Total revenue declined by $3.4 million, primarily due to the discontinuation of the shared mail program and niche publications.
- Digital advertising revenue from dallasnews.com decreased by 1% due to a decline in website traffic from Google.
- Circulation revenue decreased by $100,000, with a decline in total subscribers from the previous year.
- The company anticipates additional headcount reductions in the first quarter of 2025, which may impact employee morale and operational capacity.
Q & A Highlights
Q: What was the digital circulation volume growth since the change in pricing midway through the quarter?
A: We have grown a little over 3,100 digital subscribers since we changed the strategy back in early September. Out of that 3,100, about 2,500 have come from the beginning of the fourth quarter.
Q: What do you think about the total addressable market (TAM) for the digital news product at the current price point?
A: We estimate the TAM for digital subscribers in North Texas to be about 600,000, based on the 8.3 million people in the area and our intelligence on those paying for news. Currently, we are a little north of 10% of that market.
Q: Has there been any meaningful pick-up in advertising revenue related to election spending?
A: No, the impact on our advertising revenue from election spending is minimal. Most of the spending is directed towards television and streaming, with only a small amount affecting our digital ad revenue.
Q: Is there any update on the release of new digital products?
A: We are focusing on launching new features rather than new products. We are in a beta test of a new video platform and have updated our app. These features are expected to drive revenue and engagement more effectively in the short term.
Q: Can you provide insight on target cash balances upon a return to growth?
A: Currently, we have about $12 million in cash. As we return to profitability, we will assess the necessary investments in the business. The sale of our building and property will also impact our cash balance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
