Adam Valentine's questions to DallasNews (DALN) leadership • Q1 2025
Question
Asked about the company's progress towards its 2025 profit improvement target, the effectiveness of the new digital subscription strategy, advertising demand by vertical, the reason for increased newsprint usage in Q1, the final cash amount for the pension payout, and the sustainability of Medium Giant's profitability.
Answer
The company confirmed it is on track for the $5 million in savings, which will start being realized in May. The new AI-driven paywall lifted subscription starts by 16%, but overall growth is slower than desired, prompting a new promotional offer. Advertising softness was seen in real estate, retail, and recruiting, while financial services remained robust. The Q1 increase in newsprint usage was a one-time event due to testing new presses and will normalize. The pension was fully funded with $10 million in cash, less than the previously estimated range. Medium Giant's improved profitability is due to focusing on larger clients, and the company aims to increase its margins further.