Q2 2020 Earnings Call
Yeah.
For today's news Corp.
For fiscal 2020 conference call or something.
It's going to be shortly.
I appreciate your patience.
Thank you.
[music].
Welcome to the news Corp, first quarter 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 call.
It's over to Michael Florin Senior Vice President.
Investor Relations Sir.
Thank you very much Eduardo Hello, everyone and welcome to news sports fiscal second quarter 2020 earnings call Me issue our earnings press release about an hour ago. It's now posted on our website at news Corp, Dot Com monoculture Robert.
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. This call may include certain forward looking information with respect to news course business and strategy.
Actual results could differ materially from what you said.
News Corp's form 10-K and form.
Thank you filings identify risks and uncertainties that could cause actual results to differ <unk> cautionary statement regarding forward looking information.
Finally, this call will include certain non-GAAP financial measures such as total segment EBITDA adjusted segment, EBITDA and adjusted yes definitions and GAAP to non-GAAP reconciliations of such measures.
Can be found in our earnings release, what Battle, that's worked to Robert Thompson for some opening comments.
Thank you much.
Well, we didn't see getting to pull metallurgy, so I'd like to express my sincere thanks to reduce cost and sort of employees in Australia.
Combine to respond thoughtfully and meaningfully each of the tragic beautiful, which.
The sound consequences for many communities.
Chicxulub reporters and editors and to talk to have done an extraordinary job in talking to fives and highlighting the impact of the tragedy towns and regions that will change much time for a couple.
We're pleased to the company and it sounds.
Pledged molds and 11 million described adult as to the cool.
Our company has continually fundraising campaign that will contribute significantly more over the coming months, we all such that the many companies, which have taught you school should make a positive difference so starting communities.
Turning to our results as we anticipated this second quarter was somewhat soft for various businesses. However, we expect improvement in the second half that's real estate knocks in stride you show signs of gradual recovery.
We continue to progress with Citi movies, which should benefit the performance about digital wins type businesses.
We also expect faster growth in did your revenues.
From the previously announced content licensing arrangements, particularly good size.
Improvement in book publishing based on the timing of the release schedules.
Meanwhile, we are on the cost of the seasonal selling painful foxtel given that the mine would just.
Sports absent to launch our entire streaming service has already started seeing ups or the new subscribers, even though we are still in the midst of the legislation to cycles.
We took an important step on out towards simplification Decel unruly notable development, which will.
Healed financial benefits for us going forward.
And I'm pleased to show that following our strategic review of News America marketing, we are engaged in negotiations for a sign that business.
These ongoing simplification efforts trying to broaden lives on the intrinsic I'd increasing value about coal assets.
Which have been tightly.
I'd appreciate it and under appreciated for too long.
For the quarter.
The company reported total revenues of approximately $2.5 billion, we charge will segment EBITDA of $365 million.
<unk> represents a decline of 6% did revenues fell 4%.
<unk> profitability versus the prior year.
Foreign exchange fluctuations affected our results with a $50 million effect on revenues or negative 2% [noise].
As I mentioned law school, we're now seeing the early benefits from our long battle for equitable treatment by the dominant textbooks ones.
In particular deals with Apple I'm, sorry, I, beginning to yield central dividends and Weve woolson. They respect sort of premium journalism produced by the talented professionals in new school.
Yeah, I'll also positive signs that summed up each on Google has excellent full appreciation to the profound social influence at all I.
Nobody journals.
In digital real estate services listing volume in Australia remains challenged but the trend improved somewhat during the quarter, particularly in Melbourne and Sydney.
Sorry, I group posted record traffic you know targets.
Bar inquiries are up 37% in Q2, yes is the price.
So these shows signs point to a gradual recovery this year and you're starting in housing market, which will obviously be efficacious so already I just referenced.
<unk> news <unk>, operator appeal to Dot com.
Profit contribution showed a substantial improvements in the quarter real estate revenue grew 4%.
As we transition to the material model, which had a natural impact on the timing of written.
Key indicators for the property market are encouraging and we expect to see improvements it moved into second half of the year largely due to the progress I don't cities.
We also envisage increasing monetization that's relevant to jason's.
As we said that bridge deep transaction, dykstra, which he's made significantly more valuable by obsolete cities ability to define and we find leads.
Despite you to being a weaker quarter seasonally we nonetheless, or tropic up 1% year over year.
And then more than 30% increase in page views based on internal metrics.
Throughout most of the calendar year 29 team really dot Com continued to guide audience share relative to Zillow and trulia According to called schools.
You're welcome to adopt to move this week, because then you see a diagnosis.
Digital camera. So you didn't comes from anybody I had previously websites Expedia.
He's technological vision and marketing progressed, well, so really dot com and new school well in years ahead.
Tracy Fellows, who you said as acting moves the yard is now focusing on her role as president of global.
Well did your real estate and will be emphasizing the development about burgeoning digital real estate assets.
Speaking of New television News Corps I'm also pleased not the arrival of decline as new schools, Chief Technology Officer, David was at Viacom for the past decade, and earlier discovery communications and he's expert at driving.
Innovation sleep innovations.
Deficiencies in Drybulk content businesses.
Will ensure that our global shared services that runs Boston costs and manage astutely security integrity is heightened.
Technological create chicken is enhanced [noise].
The news and information services.
Sure tangible improvements in the quarter.
Segment, EBITDA, increasing 27% this prior year.
Yeah, John had another strong quarter, 17% growth in digital only subscribers, including 30% growth in Wall Street Journal subscriptions yeah. The.
The journals total subscriber base continues to set records for its almost 2.7 million subscribers I won't be ended the second quarter and more recently Dow Jones consume of subscriptions achieved a new record.
Passing 3.5 with a journal crossing the 10 million digital subscriptions box.
Good luck.
I like the continuing success of risk and compliance where revenues grew a healthy 21% in fact risk and compliance as now seen owns a 20% revenue right. So 12 straight quarters.
We believe the intrinsic value of this business is rising validated by recent transactions in the sector.
[laughter] positions and tomorrow that multiples of 20 to 25 times EBITDA.
Speaking on blogs, there's not only a jewel in the crown Dow Jones, but he's on the way to becoming one of new schools most profitable exits.
Oh, that's to leverage the Wall Street journal comps and continue to yield benefits.
Clearly seen in the success of the journal the podcast produced good Spotify.
Since September launch that's been 20 million downloads, we still have work to do we are in protecting Ponca city acquisition of wireless in the UK has given us direct access to a professional pool of <unk>.
I got the WSJ, we have just be gotten recognizing revenues from that Facebook content licensing agreement with that contribution meaningfully increasing in the second half of the fiscal year onto the trends that contracts.
Marins subscribers hit a record at 615000 in Q2.
Since the prior years.
We launched a new show on the Fox business that work during the quarter Barron's round.
Which already has a full roster sponsors.
UK, where political stability and leadership I really didn't leave returns news UK had a strong quarter reflected in results and the targets.
Sometimes in the South we saw higher revenues it usually try to do with digital drugs outpacing print declines led by meaningful improvement at the Saudis 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 and Sunday times that a district leaders and reached 320000 subscriptions in Q2 up 19% year idea.
Speaking of based publications UK last week.
Instagram, sometimes radio I knew digital.
I should which will bring together the expertise of the times and the Sunday times.
Yes.
Also moved to monetize it's already substantial American audience by launching a U.S. based website last month.
So strongly suggested he's tapping into.
This is growing.
And potentially lucrative fourteens [noise].
In Australia, where the economy has been a little listings and currency relatively weak.
It was expanded to more than 566000 digital subscriptions as all the ended the quarter, 23% yeah.
The year drugs.
That SIGA is led by the continued digital transformation abuse Dragon, 65% of total subscribers now digital pardon.
In the U.S. Yoo post revenues rose with digital advertising gang, reaching out to 70% of type advertising revenues and achieving.
More than 20% revenue growth.
Post digital network had an audience of 95.2 million unique visitors in December.
The 30% yeah yeah.
Also in U.S., just last week, we launched uses dot com indexing delivering a uniquely why.
Ryan to automate didn't you regular journalism to read is on Michael I'll, just call news Dot Com office prominence Providence and items to make as much tighter as possible. The publishes while subscription SaaS will not be punished in the ranking system.
Yes, combining sophisticated artificial intelligence with professional editing news.
Dot com exposes readers to I boss are right news and views from left to rights from large publishes to small national and regional and from restart in the country.
In its first week of soft launch news had 250000 uses according to Google analytics I recommend that you.
All down like did you say if you don't use using free does that.
Turning to subscription video services Foxtel subscribers increased by 3% to 2.95 million benefiting from the launch of November 20 aging.
We are in the traditional licensees into sports subscriptions.
The tire had 372000 subscribers at 350000 Sobi paid subscribers as all the quarter's end up from 42000 <unk> the same talk last year.
As of February five.
Okay, but 370000 paid subscribers.
Policy.
Victory as we head into the high season for sports in this drug.
Customer reviews.
Well me policies and user interface and experienced a world class in fact therapeutics.
Foxtel remains focused on the user experience and strengthening the core foundation has its business.
<unk>.
It's powerful entertainment.
Now featuring six new Fox branded channels more video on demand content, a refreshed moved <unk> offering and a partnership with Netflix among various other streaming services.
Foxtel also completed cheap content agreements with NBC, you and 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 are planning entertainment.
Product, which is built off the carrier system and like I will help maximize the value of existing rights and reach beans.
Conscious consumers outside our traditional though [noise].
[noise] book publishing we had tough comparisons with the prior year than top of Cogs did see that's a drug sequentially in digital through the continued expansion of audiobooks, David Walliams lightest children's books, the Beast of Buckingham Palace did well in the UK.
We are confident that we should see improvement in the second half given the timing of the release schedule. The continued popularity of the dots House plan, Patrick and the recent successful released probably 12 and production by Peter slots.
We also look forward to the middle east evolved into a giant a guidance highly.
Magnolia type.
We've also just released books by Jessica Simpson, and Carrie Underwood and in May we expect to benefit from the release of the feel woman in the window are based on the economists best that led by I take it.
To summarize the guys talk was as expected.
A tad sluggish, but we see progress across many of the segments in the second how are.
He is increasingly clear that news corps is harvesting benefits from being a creator of content as markets societies and the big Tech platforms appreciate its commercial God.
We are simplifying the structure.
The company with a view to maximizing value for investors as a result for example, the inherent value about your real estate assets and our Giants, who will be more obvious to the benefit of all our shareholders and now for more details in the second quarter.
2025 cents, Susan but did you.
Thank you Robert.
Turning to the financials fiscal Twentytwenty second quarter total revenues were approximately $2.5 billion down 6%. That's just the criteria and total segment EBITDA was $355 million down 4%. This is the criteria.
On an adjusted basis, which excludes the impact of acquisitions.
And divestitures currency fluctuations and the other options disclosed in our lease revenues fell 4% and total segment EBITDA decreased 3% a notable improvement from the private school should lead to top performance.
Sort of course that dilution, earning fishing 14 cents as compared to 16 cents in the prior year adjusted.
Fisher baking sits in the quarter flush with the prior year.
Turning now to the individual operations segments in news and information services revenues for the quarter, whereas a $1.2 billion down 1% just since the prior year.
On an adjusted basis revenues were flat, reflecting a material improvement from the prior calls huh.
Advertising so to say, it's why circulation in subscriptions grew 3% despite currency headwinds.
Did you address it needs to Dow Jones, and the newspaper markets represented 39% should they combined revenues up from 65% in the prior year.
[noise] segment EBITDA for the pools with 142 million 20.
Since 212 million benefiting from the growth at new she tried and Dow Jones.
There was a onetime benefit of approximately $22 million teach the settlement obsession warranty related claims in the tight.
It wasn't even absent that beneficially silk racing segment EBITDA. This was driven by the you tried Dow Jones and.
Narrowing losses at the New York placed partially offset by lower contributions from use this journey and news America marketing.
Similar to the first quarter, we reclassified approximately $8 million of costs in the second quarter fiscal 2009 came from the other segments. The news and information services segment beat reallocation.
The various initiatives, including new psyches globally programmatic AD insertion shed technology services that directly benefit the news and information services segment has talked about one going if it's to live reach out global scale some level.
Turning now to the segment highlights.
James can shimon circulation revenues.
Great. So healthy five cents, reflecting 17% crises digital paid subscribers across Dow Jones consumer products. This includes 13% crises 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 revenue.
As accounted for 27% 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% discourse on because the highly profitable and scalable business is on track to approach a function.
$60 million of revenues he speaks school year.
The news wide product also showed growth benefiting from licensing deal to keep the influx and keep up with stable.
At the show I think at Dow Jones with we could these costs are fully about 5% compared to the prior year digital accounted for 43% to that's a challenging.
Let me get you lots of timing was lower in the second quarter, primarily due to tough comparison to prior year, which will significant programmatic rights for mockup lunch.
However, we've seen strong stops I saw the school shot although visibility remains limited.
Why would he is very early days, we're making progress on monetizing valuable third party.
And ships, which are key strategic focus as we extend the reach of Dow Jones and the Wall Street Journal across digital platforms and markets. These include deals the Tricia frail WSJ, what's now 30 hours a week they put cost the journal that specified and our recent content partnerships with Apple on Facebook.
Overall Dow Jones please.
Posted 4% revenue growth and another quarter of increased segment EBITDA contribution.
Oh, sorry across unused portfolio advertising conditions were mixed nishu trade advertising revenues rose, 5% sounds like the reported and local currency basis, representing second consecutive quarter VIP grades going to local currency basis.
Led by digital advertising growth at the fun and moderation print declines.
Advertising conditions in Australia remained challenging but increased slightly from the prior quarter right with revenues down 11% on reported basis and John Stephens defense in local currency.
So circulation revenues the increase in couple of prices and digital subscribers, but.
You can strike and you. She tried helped mitigate volume declines on a strain currency headwinds.
Finally news America marketing revenues fell 4% spending precision from quarter one.
Turning to the subscription video services segment revenues for the quarter worth 501 million down 11%. This is 500.
And 62 convenient price.
Which $25 million, 5% was due to 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 lower well cost subscribed the dice and changes to.
The board call subscribed to package mix as well as modestly lower pay to a few buttons.
Revenue declines were partially offset by expanding our T.T. revenues as a reminder, we love to price increase from last year, which also impacted the year over year comparison.
[noise] segment EBITDA during the quarter was $17 million down.
17% from the prior year, driven by the revenue decline, partially offset by lower total cost, including programming and transmission costs as a team at Foxtel continues to focus on streamlining dismissed.
Turning to the <unk> Foxtels closing trade subscriber base was approximately 3 million as if the fed the fish test.
Looking at 3% right well 96000 subscribers. This is the price driven by the launch in China, We live in the 2018.
Total paying a T.K. subscribers reached 684073% just this last year.
[noise], we've seen nice to talk to you the kids play trusting us with.
Crease around key exclusive events with the conclusion of a straight popular we just sports and the rugby World Cup. The number of paid subscribers in China, So from a prior quarter.
Notwithstanding trailers viewer engagement continues to be strong subscriber is watching an average of 5.3 weekly hours, but the average customer watching seven of the 50 different.
Sports available on trying to each week we.
We've also been pleased with increasing brand awareness the stability of the platform and more importantly customer feedback in relation to the user experience tires solid subscribed price gives us optimism as it enters its second you hit it the prime went to school selling season.
The team continues to work on a new T. entertainment product builds on the tire technology platform with the commercial launch and just touching the fourth quarter.
In the second call support cost you in 16%, which is slightly higher than the 15.6% in the prior year Foxtel direct channel Chen of 14% was 2.5 points lower.
In the prior year, which was the lowest second quarter, writing fully luxoft calls at the main driver behind the high a Chinese coming from the low Optune Telstra wholesale cost on expiring contracts from the past 12 to 24 month.
Broadcast ARPU declined about 1% to worry about 77, a strange I looked at all.
In November we completed the refinancing of a significant portion of Foxtel dish, which extended maturities for at least three more details will be available in the 10-Q filing.
At the publishing topic Collins revenues for the quarter fell 11% $442 million and segment EBITDA fell 28% to 63.
Hello.
We have previously indicated the revenue declined this quarter was primarily due to a tough comparison with the prior year, which included Heinz Buddy Joanna gains build actual faced by right to holiday.
Thank you Keith My and she told me and higher sales from the special ops why not meant.
The declines were partially offset.
By new releases, which include the pine need them in.
The new from T. by re treatment and the faced with Buckingham Palace like David welcomed.
We sort of 5% increase mean digital sales compared to the prior year, primarily due to 17% correcting downloadable audiard books are several digital styles represented 19% of.
Revenues for the call shop.
Progress is being made me that publishing benches, we expect the partnerships with Elizabeth Guide was group at Sony Pictures, and Bell media to provide a longer term pay off these taunton sheets I'm to school the value that intellectual property and should allow us to capitalize on other revenue streams very modest capital.
Right.
At the digital real estate services segment revenues were down 5% to $294 million, which foreign currency fluctuations had a negative impact of $8 million, 2% on an adjusted basis revenues declined to treat the Sims.
Our acreage revenues were down 8% well down 4%.
And she local currency the decline moderated from law school shop, but the benefits from higher yield and improved product mix in the residential business more than offset by 12% year over year decline in the new listing building during the quarter, although the right increasing each month during the course.
I think page views launches old trends at high.
Hi, I'm missing key into traces pointing to a gradual property market recovery.
In the developed the market need project commitments selfishly treat the sensing the pool and the associated revenues have remained challenged.
Please refer to our earnings release any conference call that just concluded for additional details and comments on the outlook.
[laughter].
These revenues declined 1% to $191 million, although importantly, real estate revenues grew 4% revenue trend slowed during the course of primarily due to the lapping at the GAAP City acquisition, you don't play for 2018 and the subsequent transition of leads from the pull lead model to their affair model, which has a tiny intact as revenues recognized.
When the transaction closes.
The increasing real estate revenues, which represented 82% to try to move revenues with looked like roasting audience and high leasehold together with the increased penetration of like like there's a local branded product.
Results I don't see to remain encouraging as we saw improvement in the K P eyes across the.
18 markets, we are testing, including and most importantly place right. We're very encouraged by the results and continue to when she said Titan increases that needs in the second half.
One audience average monthly unique users for the corporate real estate dropped from 59 million, 99% just as the prior year and it gainful very strong.
<unk> carting page views and time spent on site.
Segment, EBITDA fell 2% to $118 million, however, on an adjusted basis EBITDA range, 2%.
Reflect increased profit contribution that mood benefiting from phasing of marketing restructuring changes implemented late last year and the lapping of investment.
That helps <unk> offset by lower <unk> revenues.
I would now like to talk about the same in the upcoming portion.
[noise] using information services overall advertising trends, thus far remain similar to the pop culture levels, although visibility remains limited.
We expect to see improvements attached.
<unk> increased licensing revenues from previously announced content licensing agreements, notably from Facebook.
Well I know you should we have also seen a pickup in digital advertising it catch I'd say Fabi school. So overall, we would expect to see improvements compared to the price <unk> among our niche brands like News America marketing likely remains challenged.
In subscription video services for the third call shall we expect approximately U.S. $10 million a cost related to the acceleration and the transaction that we previously nicely and modestly higher marketing coffee tranche of the change into sports selling season.
We expect full year cost to be relatively stable with the prior year local currency given the low attrition.
<unk> expenses this quarter as I mentioned earlier.
[noise] into publishing as Robert mentioned, we expect the timing inflation me releases combined with less challenging comparisons in the fourth quarter to lead to improved many book publishing in second half.
And it digital real estate services as nice thing they release Ari I anticipate.
Favorable listing conditions in the second half the finance eattwenty to deliver stronger revenue outcome. Please see they really football team child. We also expect improvements in the second half would be ongoing progress at ups and she with that let me hand did I catch the operations the Tonight.
[noise] that's of course, that's just like the ask your question. Please signal.
Perfect Star one telephone keypad, if you're using it speakerphone. Please make sure you need to function is turned off to life to return equipment.
We get press star one to pose the question, we'll pause for just a moment for every one of the opportunity to signal for questions.
I'll take the first question so keen hadn't at Goldman Sachs. Please go ahead.
Oh My God, it's just too from a place that's like sometimes it's around expected timing on that NAND sound negotiations I don't see your latest thoughts around the use of please proceed to nail the folks that fun things. They follow US and then secondly, just on the entertainment.
Okay take plans.
We read into the H. Gmx trademark there was recently filed in Australia and can you comment on how you think about the importance of H. go to your four children stem and offering just.
[noise] <unk> first of all News America marketing wasn't big marketing, we're engaging active negotiations.
So the company and I'm happy to report the.
Discussions are well advanced.
Frankly, the company's balance of revenues interested from being a newspaper inserts company to being more of an install marketing company.
The last is you're comfortable business, but not core to our competencies.
Coming from.
On the use of the funds that's a pension related questions.
You really should cause those types.
What I would say so we have.
Parallel collection.
Grinding foxtel, where unlike a U.S. type of companies in the past week lunges across.
A real writings all providers and there's no doubt for example was recently deals with bulk Saturday. So you saw new discovery Baby say stood at two more years of hasty are.
We're in very good shape.
Thank you gain a Eduardo we'll take our next question. Please.
So I'll take your next question from its Rajkowski Credit Suisse. Please go ahead.
[noise] Oh.
My question needs around cash.
Okay Sops declined in the call you pointed to some states not factors.
I think I'm just interested in.
But that decline as compared to your expectations.
Deposit that subset down over the period and I mean do you feel that we have an outbreak close to full penetration.
Admittedly, it's fairly steadily since the launch and then.
Right, so that I do think.
Pardon me speak the right level do you feel like you made additional content.
My comments will be helpful.
Venture were very early size of the evolution and it has been an exponential evolution. If you looked at Lilly on the big in existence. So just started the year June.
Very much in the low sports season in stride yet.
Crickets fascinating, sometimes entry to lose even as it can be he's not as compelling for crowds in Australia results equals a rugby league, but could have certainly by the positive difference to audience retention, but the winter sports in Australia about congregation pads audience aggregation enrollment.
Cost of about selling season, but there's no doubt that Tony I was an absolutely world class kg offering also no doubt that it has a hell of a runway.
The customer reviews of resoundingly positive.
He streaming technology without equaling the strategy. These.
The alone.
All right.
Let's be clear this is not a 699 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 Gold ounces.
Go ahead.
<unk>.
Two questions. Please.
First up for Susan.
Where the Fox felt that stands now.
Quoting itself or death, and what kinda covenants, it has and I would stand relative to its covenants and.
Mark.
Question Warren Buffett has given up on local newspaper.
In the U.S.U.S., you have a national newspaper without local newspapers.
An important or the local newspapers in Australia to your national newspapers, and the rest of Europe, Australia business. Thank you.
Hi, Alan just in relation to the Foxtel refinancing you'd be able to finding all the details.
10-Q.
Has a different tranches would be interest rights and the maturities.
Every intific you're talking that's what I would say, though is in relation to the covenants, we did put $700 million of a shareholder light gauge subordinated.
In order to provide plenty of headroom in relation to the covenants.
He has absolutely no concerns at this stage that there's any issues.
[noise] <unk>.
Sure.
[noise] tightens Oh long.
I think just as a philosophical question.
I'll give you need more philosophical answer is that the.
Ecosystem.
Generally can use content is mixed it seems a little transition we have to change the ecosystem to news content. It is just digitally dysfunctional, which affects national and local papers.
They're now papers with a local and national have to transform themselves within that changing flat.
Lets.
Changes take place at both levels. They haven't so I will not be cannot be equilibrium.
Let's be clear, we literally dealing with fundamental changes and the character and value of content entities, absolutely fair to site.
So we could unlock the Murdoch's leadership no company, it's been as influential on.
This issue as new school.
Thank you Alan Eduardo we'll take our next question. Please.
For the next question comes from Craig.
Huber Research partners. Please go ahead.
You have so I got a few questions you could you just go one of the time please.
On your wife's coal Robert.
She will that today, but to your little bit further about your relationship with Facebook.
The Wall Street Journal.
There is a room there just kind of stick out here in the coming years actually expand that relationship.
This has a more toward payment or would it looks that that's it for you. That's my first question.
[noise], obviously, that's an evolving.
Relationship and not just minutes I spoke with with the other digital platforms, where I come 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.
Until that point that Tata policemen.
Been established and it is a police isn't that will resonate.
Do you see anything Robert.
Platforms up like a Google or something coming down the pike at some point, if we get some payments literature.
Not realistic.
I couldn't possibly.
One other platforms others on the.
The observation on made about the.
Real appreciation that seemed a bit shaw for the importance of high quality journalism. So somebody.
Okay. The Eduardo.
And we'll take our next question please.
Yes or no.
Question comes from Brian have.
Morningstar. Please go ahead.
Right now that you sold the unruly and putting that sales.
So to say that assets such as the wall at school.
Storyful Ansgar news also being looked at.
I will say Susan.
In U.S.
Any information did you guys change to try a quarter in some EBITDA number from 122 on Twitter.
And if so why.
The question of simplification, obviously, we see level a assets.
Just a quad Wallace, which.
Is playing a beneficial roll into development of for example, as I've mentioned public tell skills look simplification. He is an ongoing process with a clear touching purpose tonight inherent value of the company more obviously, just so you might notice it is a complexity to the company given the mix of assets in a degree of trends.
In addition in some of the sectors and the mall frankly that we can highlight the value of individual assets.
All the so.
Positive trajectory on the transparency of the company will become movies.
Brian just in relation to your question around the news information services EBITDA.
Mentioned in my prepared remarks.
Similar to what we did last quarter, we had about $8 million with cost that we reallocated into that segment from the other segment and those costs related to various initiatives, including news I cute, but she's out label private metric if it I'm sure technology services that directly impact on that particular segments.
Which we continually look as we look like we check lifestyle.
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 docket 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.
Yeah.
This now concludes todays call sticky for your participation you may now disconnect.
[noise].
[noise] [noise].
[music].