Shares of DallasNews Corporation DALN have gained 4.8% since the company reported its earnings for the quarter ended Sept. 30, 2024. This compares to the S&P 500 index’s -0.3% change over the same time frame. Over the past month, the stock moved 27.4% compared with the S&P 500’s 3.3% change.

For the third quarter of 2024, DallasNews incurred a net loss of $3.9 million, or 73 cents per share, widening from a net loss of $1.4 million, or 26 cents per share, in the same quarter last year.

Total revenues were $31.1 million, marking a 9.7% decrease from $34.5 million in the third quarter of 2023. This revenue decline was largely driven by an 18.5% drop in advertising and marketing services revenue, which fell from $14.7 million to $12 million. Circulation revenue saw a marginal decline of 0.8%, reaching $16.1 million compared with $16.2 million in the prior year.

Additionally, printing, distribution, and other revenue declined 14% to $3.1 million, primarily due to decreases in commercial printing and mailed advertisement revenues.

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DallasNews Corporation Price, Consensus and EPS Surprise

DallasNews Corporation price-consensus-eps-surprise-chart | DallasNews Corporation Quote

Other Key Business Metrics

DallasNews incurred an adjusted operating loss of $0.7 million, narrower than $0.9 million recorded a year ago. The improvement was primarily due to cost-saving measures, which lowered adjusted operating expenses by 10% to $31.9 million. These savings were partially offset by the revenue contraction from the company’s exit from the shared mail program and the discontinuation of print-only niche publications in August 2023.

The company’s two reportable segments, TDMN and Agency, contributed variedly to performance. TDMN’s adjusted operating income was $4.8 million, slightly down from $5 million in third-quarter 2023, while the Agency segment, operating under Medium Giant, posted a modest adjusted operating income of $0.05 million against a loss of $0.7 million in the previous year.

Management Commentary

CEO Grant Moise highlighted the company’s strategic shift toward digital growth, emphasizing an adjusted digital subi style="display:none;"ion model to boost volume. The strategy, implemented to curb a prolonged decline, achieved initial success by reversing subi style="display:none;"ion volume decline, though revenue growth from this strategy is expected to materialize gradually. Moise reiterated the company’s commitment to returning to profitability through streamlined operations and ongoing strategic shifts.