Dallas Morning News parent sees first year-over-year rise in subscription revenue in six years
The parent company of The Dallas Morning News saw its first quarterly year-over-year increase in subscription revenue in six years as it rebounded from store closings that led to heavy advertising declines a year ago.
But the surge was not enough to stave off a net loss for the three month period ended June 30. DallasNews Corporation reported a loss of $ 1.5 million compared to a loss of $ 3.4 million for the same period last year. The final quarter includes $ 1.4 million in severance payments from a voluntary takeover offer.
During a telephone conversation with investors on Tuesday, Robert W. Decherd, the company’s chairman, president and chief executive officer, said corporate leaders believe the “prospects for a sustainable newspaper business” are real.
Total revenue for the quarter increased 9.2% to $ 38.7 million, compared to $ 35.4 million for the same three-month period last year. Print primarily led to a 19.3% increase in advertising and marketing services. Distribution revenue increased 2.4%, with digital-only subscriber sales increasing 52.3%, offsetting a 2.4% decrease in home delivery and a 7.6% decrease in single-copy sales .
“We have made significant strides in building our digital footprint. Our numbers are encouraging, ”said Decherd.
While the increase in advertising revenue from April to June could be viewed as a deviation, Decherd said, it was also the sharp decline in the health crisis.
Decherd said he continues to see benefits in the company’s goal of becoming a digital newsroom. He cited the hiring of Katrice Hardy as The News’ next editor-in-chief after an eight-month search. Hardy, a seasoned journalist whose editorial offices have had award-winning reporting, has filled a position that had been vacant since last fall when Mike Wilson stepped down and ended a nearly six-year term.
The News added 3,528 digital subscriptions to end the second quarter with 52,930 digital subscribers, up 21.4% year over year. The company has a combined total of 143,000 print and digital subscribers. This is roughly the same as a year ago, which shows that circulation is stabilizing as digitization absorbs the loss of print subscribers.
Despite recent financial improvements, the company continues to face the challenge of replacing print revenue with digital revenue to support its operations. The company declined to disclose targets for a break-even point.
DallasNews is in better shape than many big city newspaper owners with $ 37.8 million cash and no debt. The company will also pay $ 22.4 million next year for the sale of its former long-standing headquarters at 508 Young Street.
Chief Financial Officer and Executive Vice President Katy Murray said the downsizing this year through acquisitions will result in future savings of $ 3 million on an annual basis.
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