Q2 2020 Earnings Call
Yeah.
Today's news Corp.
Second quarter fiscal 2020 conference call, there's something to these audience tend to be shortly.
You patients.
Thank you.
[music].
Okay.
Its course <unk> fiscal 2020 conference call. Today's conference is being recorded media will be on listen only basis and not just talking about to turn the conference over to Michael Florin Senior Vice President.
This call.
Thank you very much Eduardo.
We want a welcome to news reports fiscal.
Second quarter 2020 earnings call.
The issue our earnings press release about an hour ago. It's now posted on our website News Corp. Dotcom on the cultural Robert Thompson, Chief Executive and Susan for New Cho Chief Financial Officer.
We all know what some prepared remarks, it'll be happy to take questions from the investment community is called <unk>.
Certain forward looking information with respect to news course business and strategy.
Could differ materially from what you said [noise].
You scorched form 10-K, and form 10-Q filings identify risks and uncertainties that could cause actual results to differ.
<unk> cautionary statement regarding forward looking information. Additionally, this call will include.
Certain non-GAAP financial measures such as total segment EBITDA adjusted segment EBITDA and adjusted yes, the definitions and GAAP to non-GAAP reconciliations of such measures can be found in our earnings release with adult pass it over to Robert Thompson for some opening comments. Thank you much.
Before we didnt get into full metallurgy.
Dr. Express my sincere thanks to our leaders customers and employees in Australia, whose combine to respond thoughtfully and meaningfully to the tragic biutiful, which has had profound consequences for many communities in particular, I reporters and editors into top foods have done an extraordinary job in talking to five cents.
Well I mean impacted the tragedy towns and regions that will change much time to recover.
We are pleased to the company and it sounds.
It's more than 11 million in Australian dollars to the cool.
And our company has continuing fundraising campaign that will contribute significantly.
Oh I have to becoming loans. We also understand the many companies we shut partner useful to bank and possibly a difference first driving communities.
Turning to our results actually anticipate I did the second quarter was somewhat soft various businesses. However, we expect improvement in the second half.
That's real estate box in stride, yet show signs of gradual recovery and we continued to progress with Citi.
Which should benefit the performance about digital rooms type businesses.
We also expect faster growth in did your revenues.
From the previously announced content licensing arrangements, particularly good sized.
I'd improvement in book publishing based on the timing of the relationships.
Meanwhile, we are on the cost of the seasonal selling painful foxtel given that the nine winter sports I seem to launch UN carrier streaming service.
Already starting to see it up to the new subscribers Stevens our.
We are still in the midst of the low season to cycles.
We took an important step on out towards simplification will decide unruly notable development, which will yield financial benefits for us going forward.
I'm pleased to say that following our strategic review of News America marketing we are in.
He negotiations for a sign that business.
These ongoing simplification efforts trying to broaden lives on the intrinsic and increasing value of the coal assets, which have been tightly.
On appreciated and under appreciated for too long.
For the quarter.
The company reported.
Total revenues of approximately $2.5 billion with total segment EBITDA of $355 million. This represents a decline of 6% revenues and 4% profitability versus the prior year.
Foreign exchange fluctuations affected our results with a 50 million dollar effect on revenues.
Yes, well negative 67 [noise].
As I mentioned last quarter, we're now seeing the early benefits from our long battle for equitable treatment, while the dominant technical excellence.
Particular deals with Apple and Facebook beginning to yield central dividends, we won't come they respect so the premium journalism produced by the.
Talented professionals in the school.
There are also positive signs that summed up in China Google.
So full appreciation for the profound social influence of high quality journalism.
In digital real estate services listing volume in Australia remains challenged but the trend improved somewhat.
During the course, particularly in Melbourne and Sydney.
Sorry, I group posted record traffic, you know target and bar inquiries are up 37% in Q2 versus the prior year.
These signs point to a gradual recovery this year and you're starting in housing market, which will obviously be efficacious.
So already I was writing.
Ooh opera, operator of Realty Dot com.
Profit contribution showed a substantial improvements in the quarter real estate revenue grew 4% as we transition to the referral model, which had a natural impact on the timing of written.
He indicated just to the property markets aren't.
And we expect to see improvements it moved into second half of the year largely due to the progress adult cities.
We also envisage increasing monetization of relevant to Jason sees as we said something like reach out deep transaction Dykstra, which is made significantly more valuable by obsolete pop cities ability.
To define and we find leaves.
Despite Q2 being a weaker quarter seasonally we nonetheless store traffic up 1% year over year and the more than 30% increasing page views based on internal metrics.
Throughout most of the calendar year 29 to realtor.
Calm continued to guide audience share relative to Zillow and Trulia According to Comscore.
We welcome to adopt or to move this week as did you see a diagnosis savvy digital kind of a suite of comes from me by I'd had previously worked at Expedia.
He's technological vision and marketing prowess West we'll see.
It was really dot com and new school well in years ahead.
Tracy Fellows, who might be said as acting we'd see I. It's now focusing on her role as president of global did your real estate.
Emphasizing the development about burgeoning digital real estate assets.
Speaking of new television news.
I'm also pleased not the arrival of declined as new schools, Chief Technology Officer, David was at Viacom for the past decade Discovery Communications I, just expert at driving innovation sleep innovations.
Deficiency in global content businesses.
It will ensure that are.
She had said this is that runs Boston costs and manage astutely security integrity is heightened and technological pre activities. These enhanced [noise].
The news and information service segment showed tangible improvements in the quarter segment EBITDA, increasing 27% this prior year.
Dow Jones.
I had another strong quarter, 17% growth in digital only subscribers, including 30% growth in Wall Street Journal digital subscriptions yeah. The.
The journals total subscriber base continues to set records with almost 2.7 million subscribers as of the ended the second quarter Anvil.
The Dow Jones consume of subscriptions that she didn't you recalled surpassing 3.5 with a journal crossing the 10 million digital subscriptions box.
I would like to highlight the continuing success at risk and compliance.
Revenues grew a healthy 21% in fact risk and compliance has.
Now seen over 20% revenue driver for 12 straight quarters.
We believe the intrinsic value of this business is rising validated by recent transactions in the sector.
<unk> commanded multiples of 20 to 25 times EBITDA.
We're still going blogs, there's more timely a.
All in the Crown Dow Jones, but he's on the way to becoming one of new schools most valuable assets.
Oh, if that's still veterans, who won't see journals comps and continued to yield benefits and that clearly seen in the success of the journal the podcast produced good Spotify.
Since September launch I think 20 million.
We still have work to do or in protecting podcast.
One of wireless in the UK has given us direct access to professional pool, a bold college towns.
I got the WSJ, we have just be gotten recognizing revenues from that high school content licensing agreement with that contribution meaningfully.
Pricing in the second half of the fiscal year onto the tens about contracts.
Barron's subscribers hit a record at 615000 in Q2 percent inside of the prior years I'd, We launched our new show on the Fox business network during the quarter.
Round table, which already has a full roster.
<unk>.
[noise] UK political stability and leadership has really been leave returns news UK had a strong quarter reflected in results from the targets Sunday times in the South we saw higher revenues at news UK due to the digital growth outpacing print declines.
Led by meaningful improvement to the South is audience grew to approximately 134 million global average monthly unique users in Q2, an increase of 9% on Q1's, according to Google analytics.
The times on Sunday times that a district leaders and reached 320000 subscriptions.
In Q2 up 19% year I'd be.
Speaking of these publications UK last week announced the creation of times radio I knew ditching station, which will bring together you expertise of the times and the Sunday Times Wallace.
There's some also.
To monetize it's already substantial American audience by launching a U.S. based website last month.
Just on strongly suggest that he's tapping into.
This is growing and potentially lucrative fourteens.
In Australia, where the economy has been a little listings.
And currency relatively weak.
It has expanded to more than 566000 digital subscriptions as all the end of the quarter, 23% year over year drugs.
SIGA is led by the continued digital transformation at the astride 65% of total.
This now digital.
In the U.S. you all priced revenues rose with digital advertising again, reaching out to 70% of tires.
News and achieving more than 20% mute.
The post digital network had an audience of 95.2 million unique visitors in December.
Up 30% yeah the.
Also the U.S. just last week, we launched news dot com indexing delivering a uniquely wide range of ultimate didn't you rightly journalism to read is on Michael and just called news Dot Com office prominent still profitable send items to bring as much.
Hi, guys possible to publishes well subscription sites will not be punished in the ranking system.
By combining sophisticated artificial intelligence with professional editing news dot com exposes readers to I Boston are right news abuse from left to rise from locks publishes the small national and regional and.
Restocking in the country.
Its first week of soft launch news had 258000 uses according to Google analytics.
Recommend that you all downloaded the news out a few Doug news you simply does not.
Turning to subscription video services Foxtel subscribers.
I was increased by 3% to 2.95 million benefiting from the launch of tell you I wouldn't November 20 aging.
We are in the traditional lung seasons of sports subscriptions. The care had 372000 subscribers at 350000 Sobi paid subscribers as all the quarter's end.
Up from 42000 at the same talked last year.
As of February five carrier.
370000 paid subscribers.
Positive trajectory as we head into the high season for sports and this drug.
Customer reviews.
Well, mainly positive and use the into.
Ladies and experience of World class in fact therapeutics.
Foxtel remains focused on the user experience and strengthening the core foundation of its business, including its powerful entertainment line up now featuring six new Fox branded channels more video on demand content to refresh we agree offering.
Partnership with Netflix among various other streaming services.
Foxtel also completed keep content agreements with NBC, you I'm discovery in the quarter, providing more on the Bom content. So that it is the go to provide a programming in Australia.
Finally, I'd Foxtel we.
Our planning entertainment GT product, which is built off the carrier system like carrier will help maximize the value of existing rights and reach binge comps your skin cheating those outside our traditional.
[noise] book publishing we had tough comparisons with the prior year.
On top of college did see better drug sequentially in digital through the continued expansion of audiobooks.
While EMS lightest children's books, the Beast of Buckingham Palace did well in the UK, we're confident that we should see improvement in the second half given the timing of the release schedule. The continued popularity.
That's house by on patches and the recent successful release profiles and corruption by Peter slots and we also look forward to the I remember lease volume two of jotted guidance highly popular Magnolia type.
We have also just released books by Jessica Simpson and Carrie Underwood and in May we expected.
To confirm the release of the film woman in the window.
Just on the eponymous bestsellers like Hey, Jason.
To summarize the guys talk was as expected, let tad sluggish, but we see progress across many of the segments in the second huh.
He is increasingly clear that news.
It is harvesting benefits from being a creator of content as markets societies and the big Tech platforms appreciate its commercial value.
We are simplifying the structure of the company with a view to maximizing value for investors. As a result for example, the inherent value of that did your real estate assets.
And our Giants, who will be more obvious to the benefit of all our shareholders I now for more details on the second quarter, It's gradual 2025 cents Susan pitcher.
Thank you up it Kenny financials Ski school Twentytwenty second quarter total revenues were approximately $2.5 billion.
6%, that's just the criteria and casual segment EBITDA was $355 million down 4% versus the prior year.
On an adjusted basis, which excludes the impact of acquisitions and divestitures currency fluctuations and the other Washington's disclosed in our release revenues fell 4% and total segment EBITDA decreased Street.
It's a notable improvement from the prior quarters EBITDA performance.
Sort of course that dilution to any fishing 14 cents as compared to 16 cents in the prior year adjusted earning fishing 18 cents in the course of flat with the prior year.
Turning now to the individual operations segments in news and information.
Services revenue to the call tour at a $1.2 billion down 1% versus the prior year on an adjusted basis revenues were flat, reflecting immaterial improvement from the prior calls huh.
I think fell 5% west situation in subscriptions grew treat the same despite currency headwinds.
Digital revenues without.
James and the newspaper markets represented 39% to their combined revenues from say she thought you mentioned the prior year.
[noise] segment EBITDA for the calls with hundred 42 million, 27% 212 million benefiting from the growth that you should try and Dow Jones.
There was a onetime benefit of approximately 22.
<unk> million dollars cheated the special mention obsession warranty relation claim to me try however, even absent that benefits. We spoke racing segment EBITDA. This was driven by the trial Dow Jones and the narrowing losses at the New York placed partially offset by lower contributions from uses starting at news America marketing.
[laughter].
Much of the first quarter, we reclassified approximately $8 million a call in the second quarter fiscal 2019 from the other segments. The news and information said for segment.
Reallocated costs related to various initiatives, including news I keep a global programmatic AD insertion shed technology say this is that directly benefit the news and information.
And since the segment has talked about one going if it's to live reach out global scale to local.
Turning now to the segment highlights at Dow Jones can Shimon circulation revenues grew at a healthy five cents, reflecting 17% crises digital paid subscribers across Dow Jones consumer products. This includes 13.
I think rising digital only paid subscribers at the Wall Street Journal in the aggregate the Wall Street Journal subscriber base reached approximately 2.6 million.
Professional information business revenues accounted for 27% to Dow Jones revenues this quarter growing 8% to $115 million maintaining momentum from the first quarter.
As Robert mentioned, the key growth engine continues to be risk and compliance which grew a healthy 21%. These core. So this is a highly profitable and scalable business and he is on track to approaching $160 million with revenues. He speaks school year.
The news was caught up also showed growth been thinking through licensing deal to dream Big and.
What's that keep up with stable.
[noise], that's it's I think at Dow Jones with weaker these costs are fully about 5% compared to the prior year digital accounted for 43% of advertising revenue digital advertising was lower in the second quarter, primarily due to tough comparison to prior year, which still significant programmatic rights from mockup lunch.
However, we've seen strong stops I saw the school shop, although visibility remains limited.
Well, it's very early days, we're making progress on monetizing valuable said talkie ponton ships, which are key strategic focus as we extend the reach of data chains and the Wall Street journal across digital platform to market.
These include deals.
<unk> WSJ, what's helping to yeah, it's a week data what caused the journal, which specified and our recent content partnerships with Apple on Facebook.
Overall, Dow Jones placed at 4% revenue growth and another quarter of increased segment EBITDA contribution.
Elsewhere across our needs portfolio advertising conditions were mixed.
You should trade advertising revenues rightsized to send somebody to reported and local currency basis, representing the second consecutive quarter. If your IP rights on the local currency basis led by digital advertising growth at the fun and moderation print decline.
I think condition can Australia remains challenging but increased slightly from the prior quarter.
All right with revenues down, 11% on reported basis, and John Stephens attention to currency.
Well circulation revenues the increase in copper prices and digital subscribers, but you just try and new she tried helps mitigate volume declines and a strain currency headwinds.
Finally news America marketing revenues fell fault.
And spending treatment from quarter one.
Turning to the subscription video services segment revenues for the quarter worth 501 million down 11%. This is 562, meaning the price.
I think which $25 million of 5% with teach the negative impact from foreign currency on an adjusted basis.
Revenues declined 6%.
Broadcoms subscribed to trends were relatively similar to the picor side with the revenue decline driven by local cost subscribed to buy and changes to the broadcast subscribed to package mix as well as modestly lower pay to T. Rex.
Revenue declines were partially offset by expanding our T.T.
As a reminder, we love to price increase from Masashi, which also impacted the year over year comparison.
[noise] segment EBITDA in the quarter with $70 million down 17% from the prior year driven by the revenue decline, partially offset by lower traction.
Including programming and transmission costs as the team at.
Continues to focus on streamlining business.
Turning to the <unk> Foxtels closing trade subscriber base with approximately 3 million as if the fed the fish test, reflecting a 3% right well 96000 subscribers. This is the pricing driven by the launch of try I mean, they've been but 2018.
Actual paying a T.K. subscribers reached 684073% just this last year.
We've seen I'd appreciate it trades paid customers will increase around key exclusive events with the conclusion of a strays popular into sports and the rugby World Cup. The number of paid subscribers in capex. So from the prior calls.
Notwithstanding triad viewer engagement continues to be strong subscribe is watching an average of 5.3, we clearly with the average customer watching seven of the 50 different spots available on trial each week.
We've only been pleased with increasing brand awareness.
Let's see if the platform and more importantly customer feedback in.
In addition to the user experience tires solid subscribed price gives us optimism as it enters its second he hit if the prime went to school selling season.
The team continues to work on a net Kiki entertainment products on the trailer technology platform with the commercial launch and just touching the fourth quarter.
In the.
I can call support structure in 16%, which is slightly higher than the 15.6% in the prior year Foxtel direct channel Chen at 14% with 2.5 points lower than the prior year, which was the lowest second quarter, writing fully luxoft calls at the main driver behind the Hyatt Chinese coming from the low Optune Telstra hold.
And on expiring contracts from the past 12 to 24 month.
Broadcast ARPU declined about 1% to worry about 77, a strange I looked at month.
It depends but we completed the refinancing if a significant portion of folks out there, which extended maturities for at least three more details will be available.
In the 10-Q filings.
[noise] Apple publishing topic Collins revenues for the quarter fell 11% $442 million and segment EBITDA fell 28% to $63 million.
We have previously indicated the revenue declined this quarter was primarily due to a tough comparison, but the priority which included find body Joanna.
Again, Bill she'll faced by Rachel Hollis right, you can buy and she told me and higher sales from special ops by my math.
The declines were partially offset by new releases, which include the tiny women cooks, new funky by re treatment and the base with Buckingham Palace like I did problems.
So it's hard to sitting premium digital sales compared to the prior year, primarily due to 17% correcting downloadable audiard books.
Digital sales represented 19% of consumer revenues for the quarter.
Progress is being made without long publishing benches, we expect the cotton ships with Elizabeth Guide Lewis group at for any pitches and.
Bell media to provide a longer term pay off these partnerships I'm to school the value about intellectual property and should allow us to capitalize on other revenue streams very modest capital outlay.
At the digital real estate services segment revenues were down 5% to $294 million of which foreign currency.
Actuation had a negative impact of $8 million at 2%.
On an adjusted basis revenues declined to treat the Sims.
Sorry, I group revenues were down 8% well down 4% in local currency the decline moderated from last quarter, but the benefit from high yield and improved product mix in the residential business will more than offset.
By 12% year over year decline in the new listing volume during the course.
Right, increasing each month during the course.
Truseq page views launches old trends at high I missing key into traces pointing to a gradual property market recovery.
In the develop a market need project commitments, so 53% during the quarter and you.
<unk> revenues have remained challenged.
Please refer to our earnings release any conference call that just conclude a traditional details and comments on the outlook.
[laughter] news revenues declined 1% to $121 million, Although importantly, real estate revenues grew 4% revenue trend slowed during the course of primarily.
Lead you to the lapping a pickup city acquisition you don't play the 2018 and the subsequent transition of leads from the pulled lead model to their affair model, which has a tiny impact as revenues recognized that transaction places.
The increasing real estate revenues, which represented 82% of choice when do fit the needs with looked like crazy audience and.
Leasehold together with the increased penetration of like like there's a local branded product.
Resulted opportunity remains encouraging as we saw improvement in the K P eyes across the 17 markets, we are testing, including and most importantly place right.
We're very encouraged by the results and continue to when she said Titan improvement that needs.
The second half.
[noise] on audience average monthly unique users for the corporate real to talk from 59 million rising 9% just as the prior year and again very strong year over year quirky page views and time spent some time.
Segment, EBITDA fell 2% to $118 million, however, on an adjusted basis EBITDA Bridge.
He said results reflect increased profit contribution at married benefiting from phasing of marketing restructuring changes implemented late last year and the lapping of investment costs that helps to keep offset by lower <unk> revenues.
I would now like to talk about a couple of things in the outcomes whole shop.
News and information services overall advertising trends stuff I remain similar to the pop culture levels, although visibility remains limited.
We expect to see improvements at Dow Jones from increased licensing revenues from previously announced content licensing agreements, notably from Facebook.
As I know you should we have also seen a pickup in digital.
Advertising attach James I saw the school. So overall, we would expect to see improvements compared to the price <unk>. Among these brands, Although news America marketing likely remains challenged.
In subscription video services for the third call shall we expect approximately U.S. $10 million of costs related to be accelerated amortization that we previously noted.
And modestly higher marketing coffee prompted the change into spring selling season.
We expect full year cost to be relatively stable with the prior year local currency given the lower total expenses this quarter as I'd mentioned earlier.
[noise] into publishing as Robert mentioned, we expect the timing inflation me releases combined lift.
Switching comparisons in the fourth quarter that lead to improved meaningfully publishing in second half.
And it digital real estate services as nice she may relief Ari I anticipate more favorable listing conditions in the second half a point that she 20 to deliver stronger revenue outcome. Please see there really for multi channel. We also expect improvement.
It's in the second half would be ongoing price I sit ups and she.
That let me handed over to the operations said she went <unk>.
That's of course, so it seems like the ask your question. Please signal that pressing star one telephone keypad, if you're using it speakerphone. Please make sure you need to function, it's turned off the life to return equipment.
<unk>.
Our one to pose the question was pause for just a moment.
One of the opportunity to signal for questions.
I'll take a first question from King hadn't had Goldman Sachs. Please go ahead.
When it got its just too for me please let's.
Thank you, sometimes it's around expected timing on that and then sell negotiations I don't see your latest thoughts around the use of these proceeds now the folks so debt financings. They fall off and then secondly, just on the entertainment <unk> plants, what should we read into that H.B. I'm next trademark there with recently filed in Australia and can you comment on how you think about important.
Thank you go to your folks over time and offering just.
[noise] talk first of all News America marketing wasn't big marketed we're engaged in active negotiations for the some of the company and I'm happy to report the.
Discussions are well advanced.
Frankly, the company's balances revenues since <unk>.
Shifted from being a newspaper inserts company to being more of an even still marketing company.
What is your profitable business, but not for 12 competencies.
I will comment on only use of the funds so tight related questions.
You really should play doh stage.
What I would say so we.
Uh huh.
Parallel collection of programming Foxtel.
Unlike U.S. title companies in the past week runs across a real writings all providers, but there's no doubt for example, this recent reveals a bulk sale to say you soggy.
Probably babies say you still have two more years of high speed.
We're in very good shape.
Thank you gained a Eduardo we'll take our next question. Please.
Well I'll take your next question from that's where I Coast Credit Suisse. Please go ahead.
[noise].
My question is around <unk>.
Oh, she shops decline in the quota you've pointed to some states not factors.
Driving these I'm just interested in.
With that decline as compared to your expectations are you little bit deposit that stops the down over the period and.
How many do you feel that we have now wage cost.
<unk> <unk>.
Failing.
Since the launch and then.
Well I'd answer that I do think taught me speak to the right level do you feel like he made additional content any comments will be helpful.
Inch or whatever.
Very early phase of the evolution.
It has been an exponential evolution, if you look at Lilly under Leach being in existence. So just started the year that you, though we are very much in a lot of sports season in stride yet.
Crickets fascinating, sometimes antediluvian as it can be it's not as compelling.
The crowds in Australia results. He rules are rugby league, but cricket has certainly might possibly a difference to audience retention, but the winter sports in Australia about congregation and audience aggregation and we're on the cost without selling season, but there's no doubt that Cogs and absolutely World class I can see offering also go.
But it has a hell of a runway.
The customer reviews are resoundingly positive Amit streaming technology without equal in Australia. These unrivaled alone to write.
Let's be clear this is not a six month, you know and offering but a premium $25 a month product.
Thank you and show Eduardo we'll take our next question.
Our next question comes from Alan Gould I've just kinda. Please go ahead.
Thank you I've just two questions. Please.
First up for Susan just where the Foxtel debt stands now a including this.
Health or debt and what kind of covenants of has and I would stand relative to its covenants.
And.
More philosophical question warmed bucket has given up on local newspapers in the U.S.
The U.S. you have a national newspaper without local newspapers.
Porn or the local newspapers you know.
<unk> failure to your national newspapers in the rest of your Australian business. Thank you.
Hi, I'm interested in relation to the foxtel refinancing you'd be able to find a little bit teach out 10 key title has a different tranches with the interest rights and the maturities.
Every individually catching that.
I would say, though is in relation to the covenants, we didnt <unk> $700 million with a shareholder like.
Subordinated in order to provide plenty of catering in relation to the covenants.
Has absolutely no concerns at this stage they didn't issues.
Well as Fred.
Okay.
Faces a alan.
I think you'll see as a philosophical question.
I'll give you any more philosophical answer is that the.
Ecosystem generally good news content is in the midst of seamless transition.
We have to change the ecosystem for news content. It is just.
Digitally dysfunctional, which affects national and local papers and then out papers with a local national have to transform themselves within that changes and flat.
Lets fundamental changes take place in both levels that haven't so I will not be cannot be my colleagues.
Let's be clear we are literally.
Really dealing with fundamental changes in the character and valued content entities, absolutely fair to say.
So we put on long Island Murdoch's leadership not company. It's been has influential on this issue as new school.
Thank you Alan and water, we'll take our next question. Please.
But for now.
Question comes from Craig.
Huber Research partners. Please go ahead.
Yeah. So I got a few questions. We will just go one of the time please.
Or on your wife's coal Robert he made sure that today I thought here a little bit further about your relationship with Facebook <unk>.
The Wall Street Journal payments, there, it's a room, there just kind of stick.
The coming years, three extra spend that relationship.
Besides the monthly payment of what it looks that that's it for you what's my first question.
[noise], obviously, that's an evolving relationship and not just with Facebook the with the other digital platforms, where I count obviously go into specific details about.
The agreement, but it is substantial agreement it creates new presidents, we hosted content, we sell the advertising.
First of all types of premium for for premium journalism and up until that point that part of policemen hasn't been established any these polices and that will resident.
Do you see anything.
The other platforms up like a Google or something coming down the pike at some point if it gets a payments there was that.
Not realistic.
I couldn't possibly comment on other platforms on.
The observation I married.
I'll be.
Real appreciation that some though.
The chart it so the importance of high quality Journalism Society.
Okay. The Eduardo.
And we'll take our next question please.
That's my next question comes from Brian has Morningstar. Please go ahead.
Real that now that you've sold to unruly and putting them.
Sales.
Would it be to say that assets such as the Wallets group Storyful Ansgar news Oh, so being looked at.
And also Susan.
In using information did you guys change to try a quarter's EBITDA number from 120 to one Twitter.
And if so why.
Oh.
The question of simplification, obviously, we love.
That's a we just acquired Wallace, which is playing a beneficial roll into development of for example, as I've mentioned pumped all skills.
Look simplification he is an ongoing process.
The clear touching purpose Tonight.
Fair value of the company more obviously business you might notice it was a complexity to the company given the mix of assets and the degree of transitioning some of the sectors and the mall frankly to weaken highlights the value of individual assets the malls that are.
The positive trajectory on the transparency of the company will become movies.
Brian just in relation to your question around the news information services EBITDA as I mentioned in my prepared remarks, we decreasing what's what we did last quarter, we had about $8 million with costs that we reallocation to that segments from the other segment.
And those costs related to various initiatives, including news like kids, but she's out global private messy and I'm sure technology services that directly impact on that particular segments, which we continually look as we couldn't make me chocolate style.
Thank you, Brian and while it looks like our next question. Please.
But there are no further questions at this time, let's turn the conference back to Michael floor and for any additional closing remarks.
Thank you Eduardo and thank you for all participating we look forward to talking too soon have a great day pickup.
This concludes todays call. Thank you for your participation you may now disconnect.
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