A.H. Belo Corporation, parent company of The Dallas Morning News, posted a first quarter loss of $3 million, despite layoffs and other cost-cutting measures that considerably reduced operating expenses.
The quarterly loss was smaller than in the same period in 2018, when the company started the year with a $4 million deficit.
There were "encouraging signs" at The Dallas Morning News, said Robert W. Decherd, chairman, president and chief executive officer of A. H. Belo. The print newspaper's advertising revenue improved and a $500,000 decline in circulation revenue was offset partially by a $300,000 increase in digital-only subscriptions.
Digital subscriptions volumes and pricing increased "at levels that must continue to grow in order to fully implement our digital-first strategy," Decherd said.
Revenue for the first three months totaled $46.6 million, a 5.8 percent drop from the same period a year ago.
The company's headcount now stands at 918 _ or 128 fewer people than a year ago.
During the quarter, layoffs occurred at both at The Dallas Morning News and at its printing plant in Plano. Those cuts reduced expenses by $3.5 million. The company's commercial printing services retained only its biggest clients: The New York Times, Wall Street Journal, USA Today, Fort Worth Star-Telegram and Denton Record-Chronicle.
A. H. Belo "made notable progress during the first quarter by narrowing our net loss and concentrating on a range of initiatives designed to build a strong digital business," said Decherd in a statement.
Revenue from advertising and marketing services, including print and digital revenues, was $24 million in the first quarter, a 6.6 percent decline.
The results come less than a week after a shareholder sent a critical letter to the company's board of directors, asking it to consider going private and paying out special dividends to longtime investors. David Cohen and his Minerva Advisors investment firm own about 5 percent of A. H. Belo's stock.
Decherd and other founding family members own a controlling stake in the company through a special class of voting shares that limits other shareholders' ability to force change.
