Q3 2020 Earnings Call
[music].
[laughter] welcome to the news Corp's <unk> fiscal 2020 conference call. This conference it's being recorded.
Will be on a list and only basic at this time I would like to turn the conference over time like foreign Senior Vice President and head of Investor Relations. Please go ahead.
Very much Chloe Hello, everyone and walk up to news course fiscal third quarter 2020 earnings call Where's Your earnings freshly it's about a a half an hour ago as now posted on our website at news Dot com.
Robert Thompson, Chief Executive and Susan Pinocchio, Chief Financial Officer, We all went with some prepared remarks, and then we'll be happy to take questions from the investment community.
Just call May include certain forward looking information with respect to Newsource business strategy actually sounds good different materially from what is said.
<unk> filings identify risks and uncertainties that could cause <unk> and contain cautions statements regarding forward looking information. Additionally, this call include certain non got financial measurement, such as total segment, either dot adjusted segment, either die and adjusted D.B.S., the definitions and got to non got bracket.
<unk> such measures kind of <unk> earnings release.
<unk> that I'll pass over to Robert Thompson for some opening comments.
Things like.
We are up riding in a different difficult time. So this will be a rather different distant experience.
Before the business of the day I sincerely hope that all on the school each about investor's business partners and their families a safe during this exacting era.
Every business and families facing challenges and afterwards in particular off with those who are suffering under the curse of cope with 19 I'd have had to deal with complications from this dreaded disease.
For our company the safety of our employees has obviously been Paramount.
Many about journalists took displayed much courage in recent months.
Including reporting from <unk> during the intense first phase of water has become a pandemic.
I would also like to on and I had been eight cozy, who passed a relatively young age by which time he had already become a legendary sports photographer for the neo pets.
As noted in a I.K. filing with U.S.C.C. last month.
We expected abroad impact on a business from the Pandemics inevitable economic consequences, we were affected someone in Q3 thousand dollars effects will likely be significantly more pronounced in the fourth quarter.
As we expect these impact to continue in India to significant cost reductions of being implemented across the company and additional steps will be taken in coming months.
These cuts are designed to deal with the short term exists agencies and to reposition the company for low to growth.
They will obviously be an impact on executive compensation.
For many senior executives bonuses or the largest component of that cash compensation.
This will be reduced by at least 20%.
Cats will be led by our executive Chairman, Rupert Murdoch, whose voluntarily full going he's entire cash bonus for the current fiscal year.
Does chief Executive I would forgo 75% of my annual cash bonus. In addition, a board of directors have decided to choose their cash compensation.
D significant cost reductions of all kinds across the company clearly have a positive impact on out of turtles segment.
And cash position and help mitigate some of the effects of the pandemic. We obviously leave open the possibility of further compensation cuts next fiscal year, depending on the ongoing impact of the crisis.
Turning now to the third quarter results for fiscal year, Twentytwenty revenues declined diapers into $2.3 billion, including I. 78 million dollar or 3% impact from adverse currency movements total segment, but I was down although only 2% to $242 million. It is worth.
Highlighting that operationally adjusting for currencies acquisitions and disposals and other items mentioned in a release a adjusted revenues were down 4%, but now adjusted total segment EBIT rose 1%.
Reported results also include a 1.1 billion dollar non cash right down mostly attributable to Fox, though.
I've been using information service to segment the sale of News America marketing has formally close.
This is a significant step in terms of enhancing shareholder value and part of the continuing simplification about company.
Somewhere reevaluation about assets continues and ice strategic review about community in regional pipe regional newspapers in Australia is at an advanced stage.
Also reviewing ways to improve transparency, you now segment disclosure, which will enable investors to better appreciate the inherent value in and the growth potential of Dow Jones, which we believe is the best business News and analysis brand in the world.
We are working towards making that companies potential more obvious enter highlighting his various strengths.
Certainly relative to other business wrap brands and for example to the New York Times.
Speaking of demand for premium content as you know we have entered into valuable partnerships with Apple unfaithful for use about world class journalism.
Clearly there a hobby and Jews are positive change with Google, whether <unk> has shine a more enlightened just socially empathetic attitude to journalism.
The past some in Silicon valley, so to create a system of petty patronage through phone philanthropic handouts and sententious solves seemingly designed to to institutionalize A. mendicant media.
Enlightened executives at Google tightly seek more meaningful changes to a dysfunctional ecosystem.
The times.
Tried into digital World I certainly changing.
The regulatory pressure is also intensifying as two weeks ago. The a strain government announced the introduction of it mandatory code that would require the larger digital companies to pay for content and to adjust the algorithms to get additional way to original news. It is absolutely crucial that more be understood about the character the power.
And the potential manipulation of algorithms and data.
A recent Wall Street Journal report on Amazon's business practices showed the potential danger of companies, having a dominant horizontal marketplace and selling to another new products in segment verticals in essence.
Exploiting proprietary marketplace digest, and competing with and potentially undermining their clients.
In the third quarter news and information services improved unprofitability for the second stripe caught up with 15% growth in segment up <unk>.
<unk> recorded a particularly strong performance as visual paid subscriptions rose 20% year on year, two more than 2.5 million average Dotty <unk>.
The Wall Street Journal digital paid jobs were up 15% to more than 2 million also record in recent days digital has shown further acceleration.
Subscriptions, reaching approximately 3 million for the first time, including 2.2 million digital on.
Overall at the end of April digital subscriptions rose above 20% year on year.
Digital advertising at Dow Jones rose, 25% year over year. Despite the challenges we face with that sells lighter in March.
This is in strikingly marked contrast to the performance of the New York Times, where digital AD revenue actually declined I present, I should repeat those because for the purpose of clarity.
Digital advertising rose, 25% <unk> and it fell I'd present at the New York Times.
Dow Jones profit contribution improved and was a significant contributors segment EBIT dog gross.
While ebitdas slumped, 15% up in New York Times.
[noise], we announced earlier this week that the head of the Barons group <unk>, we'll replace will lose as c. or from the bit look this month.
We will certainly leaves Dow Jones in fine federal and with enormous capacity for future growth.
Speaking of parents subscriptions, <unk>, 14% <unk> and over the past four years under L. miles leadership that digital audience at parents group brands has quadrupled.
During the caught up the Wall Street Journal Digital Network <unk> Records and hit 196 million unique uses in much up 155% versus the <unk>.
Traffic was particularly strong at market watching much way users more than tripled to 90 million compared to the pry Ya.
The professional information business reporter day, 5% increase in revenues with risk in compliance once again, demonstrating strength rising 18% of your hubby.
Elsewhere in the segment newspaper digital subscriptions that news <unk> idea, we're up 24% <unk> rising to more than 613000, a quarter and with two thirds of subscriptions at the Australian now digital on.
News U.K. the subtle reached 164 million global unique visitors in much representing a 17% increase over December according to Google analytics, well at the times and Sunday Times digital subscriptions grew 21% you're of the year, two or 345000, a now account for nearly.
60% of the base.
Meanwhile, the new old posts advertising revenues and Nicole with a rose 19% and the post digital network had 169 million average monthly unique visitors. According to Google analytics up from 170 million and cute too.
[noise] turning out to book publishing revenue declines moderated harpercollins in the courtroom compared to the first off well segment EBIT to our group yeah over yet despite very typical comparisons.
As more people have moved to work and study from home we've seen a revival in here <unk>. We are particularly pleased with early styles with Joanna gains Magnolia table volume, two which already sits atop the U.S. bestseller lists.
Digital real estate was showing sold in progress through January and February but began experiencing pandemic related declines in March.
<unk> will depend on the reopening of the Australian and U.S. economies, but traffic took both sides remains encouraging unrelated dot com is out performing the traffic trends of its house flipping computer time. According to the March home School data.
[noise] into seclusion video services segment tires descriptions rose to 444000 in Q3, including trust, which was more than double look <unk> and <unk> also showed strong growth I have the <unk> caught up.
<unk> has obviously been adversely affected in recent weeks by the suspension of sports in Australia, as we disclosed in the evenings release.
We are in serious negotiations with the major sports over a fundamental reset abroad coasts, Susan we'll discuss the possible accounting impacts shortly.
In coming weeks, we plan to launch a entertainment streaming product and expect that there will be strong demand given the power of a media profile is marketing platform and the nicest amount in Australia.
Roles are very excited by the multi to deal with Warner Media announced this week that <unk> will be the exclusive home in Australia for high <unk>, Max and other one a media hits.
Let me now turn to lingering impactive kind of it non team, which began to have an effect towards third quarters, and but clearly will be a major factor you know queue for results as we signal the now eight k. falling last month.
I would first like to commend L. leaders and now employs around the globe as we rapidly unsuccessfully moved approximately 90% about workforce around 25000 people into I work from in home environment.
Looking at the longer term, we have cleared plans for addressing the immediate challenges, we face and for emerging vigorously on the other side of this crisis.
This will not be done by random crosscutting by the by strategic decisions about the business would need to fashion for a profitable future.
That's strategy is informed by I candid assessment about capabilities and deficiencies and a clear sense that the business environment will be very different when the world finally returns to the new abnormal.
It is worth noting that this crucial <unk>.
That newschool continues to have a strong balance sheet as of March 31st we have $1.4 billion in cash and cash equivalents and in addition, we have access to I 750 million dollar corporate revolving credit facility, which remains on rule.
Bedrock of financial stability will help us with the category five storm.
Will the power about brands and the energy and the creativity about people.
The headwinds when Buffy the company in the short to but I'm extremely positive about our prospects for delivering long term gross and increasing shareholder value now.
Particulars on our results in his quota.
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Thank you about that.
Tending to the financial Twentytwenty headquartered <unk> like cheap point $3 million down, 8% <unk> <unk> eat the top with $242 million <unk>.
Parents, he had wings negatively impacted ranting, he's entitled <unk>, 3% at 6% accurately.
I mean, you trusted basis, which excludes the impact of acquisitions that has to choose and currency fluctuations at the <unk>.
4% and title segment <unk>.
<unk> had lots of to share with $1.24 as compared to any test share two cents in the pie here.
Include each $1.1 billion, if known cashing payment charges, primarily in relation to Iraq out of goodwill intangible assets <unk> and the reclassification if he's American knocking tacit held for sale.
Adjusted adding to share with three cents in the quartet compared to 417, the pry Yeah [noise].
Before going into the <unk> comments on the K. that 1910 can't make which is expected to have a significant impact on me 10 uprising myself.
Immediate cost actions are underway variable costs, obviously energies to the heightened focus on the reduction of discretionary spending and non essential <unk> together with the error. If you had cat reclining.
We are accelerating plants reduced costs across that these nets in the medium 10, particularly at our news and information sets a segment.
These initiatives include but are not limited to global shed services to centralize out back office functions.
If you that property in office footprints and reviewing out printing operations around niccolite, whereby we have already announced the printing suspension of 60 communities <unk>.
Finally in relation to company wide liquidity anything taught him Tonight I only take spacious we have all right.
100% <unk>.
And these are not <unk>, we are not anticipating any covenant issues at Fox <unk> for the next 12th month, and we have night plans to provide any additional shareholder funding.
But that as a backdrop I would now discussed the quarterly results <unk> uprising segments.
Using information services revenue sort of course, where I for $1.1 billion that eight to 10, Texas <unk>.
Just to dissect revenues declined 5%.
Advertising revenue, how 14% decline nice nice shipley at needs American marketing and he needs a strain my second I shouldn't subscription revenue agree 1%.
I haven't seen negatively impacted segment revenues by 2%.
<unk> also impacted by $14 million from the outbreak of K. that 19.
Digital revenues attach I into the newspaper laughed hits represented 42% <unk> up from 66% in the <unk>.
Segment, eight adopted a quarter was $75 million, 15% $65 million in the <unk> benefiting from increase contributions attach items improvements at the New York heist and the absence of losses from unruly, partially offset by level contribution from that.
[noise] at <unk> healthy, 4%, reflecting at 20% car I think digital paid subscribers crossed out giants cosine of products, including a 50% Crazy digital I only pipes describe this up the whole state channel.
<unk> three channel subscribe to 60 to 2.8 million in the court, 8% increase in the <unk>, which is an acceleration from the second court is quite right.
[noise] professional intonation business riffing units accounted for 20, not the center <unk> growing five set $214 million, reflecting an 18% cry thing risking compliance revenue.
Advertising revenues attach and style, 2% these quartet, but <unk> <unk>, so a shop acceleration in digital advertising refugees tasting, 25% <unk>.
It'll advertising represented 47% attach I advertising recognition.
<unk> had revenue Christ, 5% and another caught up positive contribution.
Doc Rice.
Elsewhere advertising revenues that knew she case l., 10% on a report it faces an 817 local currency we kept in the past two quarters despite strengthening digital.
<unk> have remained very challenging advertising revenues that 20% on a report it basis and 30% Daddy local currency.
Finally at Knees America marketing Graphing yourself 16.
[noise] tending to the suspension D. I say this is sickening revenues for the course over $462 million down 14%. This is $579 million in the <unk> without seven dissenting local currency.
And you decline was primarily chicken by law broadcast subscribers broadcast subscribed the trends were relatively similar to the <unk> 19 restrictions in Australia coming into place in the last week at the course huh.
Tell all say hi, slow advertising revenues reflect teeth, I think I for all T.V. marketplace.
Segment EBIT during the quarter was $68 million downstairs. She wants to send from the <unk> driven by the revenue decline, partially offset by renegotiated license fades and the timing of sports right and the production cost you to kind of at 19 related suspension.
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[noise] Foxtels closing paid subscribed the base was approximately 2.93 million as a <unk>, it's reflecting on one of the Saint <unk> driven by K.I. subscribers.
<unk> title subscribed the dice with including try less increased 444000 up from 199000 last year.
Actually reached for 470000 title. Okay. I subscribe is by March 22nd stops at the winter sports season.
Scrivens have declined in recent weeks with the suspension of the N.R. out an I.F.L. seasons, as well as rugby nicer sports and other international Sporting case like the N.B.I.
<unk> view is remained highly engaged during the course, <unk> and we expected chicken subscribe and civil completely depend on the quality and quantity of an R.S.I.F.L. games once I appreciate.
As a nice second they want more than 272000 pain K. I subscribe.
[noise] weeping beta testing socks health, New trial run Entertainment string service and we expect to launch can actually in the coming lakes and we're very pleased to announce the Wanna media deal to support to launch.
In the third caught up broadcast chatting traced assess timing almost two years to 17.5%, which was 20 basis points <unk> broadcast out to remain relatively stable at 79 Australian dollars.
No publishing Harper Collins had a strong caught or we haven't used out 2% $412 million at segment eight 4% to $55 million <unk> very tough comparison, <unk>, which had segment eat the talk right of 29%.
<unk> performance in general books children's any in the UK digital <unk>, 23% of consumer revenue, which included improvements in downloadable already I books.
At the digital real estate services segment revenues decrease fault sent to $261 million to to the negative impacts from from parents see fluctuations on an adjusted basis revenues were flat.
Segment deep dive raise 1% $74 million Oh, 9% on an adjusted basis.
<unk> Oh, 5%, however, without the 12 million dollar foreign currency impact Ari I agree mostly in local parents see this is an improvement from the first half performance benefiting from renewed crossing financial services.
Straying listing volume declines motor write it down 7%, which reflects need single digit Christ in Metro Melbourne, and Sydney <unk>.
<unk>, Oh, faisel strong traffic metrics achieving record levels in peace, it's an audience during the course huh.
However, kind of at 19 related government policies and restrictions, including bands on open hime inspections and in testing auction have led to reduce listing volumes in recent weeks in response to the impacts from the pandemic Ari I had implemented a number of relief packages to support its customers, including short 10 pricing concessions and changes to listing product.
Crisis flexibility for customers.
Please refer to our <unk> and the conference call immediately following these coal from what date house.
[noise] leave revenues declined to sent to $180 million with real estate revenues relatively flat traffic remains strong with unique using the caught up six to send to 68 million prior to the kinds of it's 19 pandemic made was on a <unk> January and February within prescribing traffic N. late Amazon pasted to leave a strong second.
<unk>.
However, I did not similar to Ari I and other digital real estate portal studies trends reversed.
In response to the pandemic real tough institution Ilene relief and you should teething light not treats customers, which was subsequently extended in Tonight.
Suffocation to the <unk> the initiative together with other kinds of at 19 or like it impacts rich you stayed quarter revenues by an estimated $6 million.
I would now like to talk about some of the same in the upcoming course huh forecasting has been challenging so I will discuss what we have seen in April and framed irrelevant risks.
Needs any information services, we expect advertising and single copy sale revenues in the segment to be adversely affected as a result of widespread business clashes and social distancing meshes.
For a framework advertising revenues, excluding use American knocking represented approximately 34% of segment revenues in the third quarter.
In April advertising revenues that data Giants was down more than 20% with digital down modestly.
Causing revenues at a stray and the U.K. would add more than 45% on a report it basis or around 40% in local currency.
As I mentioned earlier, we are taking aggressive cost action to mitigate these revenue declines within the segment at the same time. We have also I continue to say strong right in digital subscribe as across the key properties in April including I have a 20% year on year <unk> digital I only subscribe to the Wall Street channel.
In the state court, approximately 75% Dow Jones revenues with subscription based providing much more visibility and stability digital revenues, a cat, 68% of <unk> and digital paid subscribers accounted for 73% the Wall Street Journal subscribed the dice.
In subscription video services, we anticipate an increasing broadcast check with the suspension of the N.R. out an I.S.L. seasons.
<unk> has been fairly stable, although we have Saint Lois sports T. and K. I subscribe as as you would expect.
Clashes of pubs and clubs and low occupancy at hotels throughout Australia are also expected to adversely impact commercial subscription revenues together with a downturn in advertising revenue.
<unk> has implemented several initiatives, including tightening up additional entertainment content to old subscribers at providing Fox tell broad band customers with unlimited thanks for allowances for streaming.
As the <unk> Amortizes event, I sports like Formula, one, which have no dedicated channels upon the parents at the event.
Consequently, the <unk> included about 9 million U.S. dollars off that with the set you two events catsuit opus find.
Channel by sport tried such as the I.F.L.N.R.L. and domestic cricket are expense on a straight line by society Yeah.
The third quarter included a full amount that's right phase for all three of those sports in the event that the N.R.L. an I.F.L. do not regime next season in the fourth quarter, we would plan to to said ice cough until the sports regime.
All the sports Spice contracts have different terms and conditions and we apparently in discussions with the lakes around the best way to move forward and to value to see some that remains.
As a frame what the culturally costs between the I.F.L. an arrow prior to the suspensions when 95 million Australian dollars or approximately 60 million U.S. dollars.
In addition, we also expect in approximately 10 million dollar impact from the accelerated entertainment <unk> Porsche.
Input publishing as the retail market adjusted to stay at high restrictions by closing a number of bricks and mortar stalls hop, calling so strong pricing on line styles with <unk>.
I really slices largely intact and that's wrong, but mentioned what about top books for the.
<unk> Magnolia type of volume to selling very well.
[noise] digital real estate services, <unk>, Ari I anticipate to challenging listing environment, given the government social distancing meshes with April you buy listings falling Stacy, 3% realtors facing lower real estate transactions Encouragingly late volume and unique uses have shown improvement in recent weeks.
By companies have taken <unk> meshes to extend credit to their respective customers discount. So other similar measures, which will have an adverse impact on revenue.
<unk> is expected to come down significantly to around $475 million compared to $572 million last year, which includes a 35% to 40% decline at Fox tell an update on our initial guidance, that's approximately 20% year on year reduction.
Finally, a word about our tax right.
Panel perspective, we expect an unusually high tax write for the for you to to session operating losses in foreign jurisdictions that we are unable to type deductions against this is a piano impacts not to cash impact.
As I mentioned these are unique times, but we believe we'd astro liquidity condition mock leading brands how emphasis on digital transformation as well as a more aggressive fight this on costs meshes east copies well positioned to whether the <unk>.
That let me handed over to the operation secure.
Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure you mean function as turned off the line, you're saying not to reach our equipment.
Again press start one to ask the question well past for just a moment everyone an opportunity to signal for questions. Thank you.
Well take our first question time electric why Johnny from G.P. mine.
I. Thank you very much I can you elaborate on that string.
Advertising highlight.
Quarter Wall Street Journal, it sounded like and enable on top of the little bad, but still seems like it's coming in probably about the only thing in the industry I'm wondering if it was.
Depicted sorry articles that continued to be striking product.
I'm not just a follow up on the to make up a strong growth digital subscriber.
National domestic anything different maybe younger are they pretty much just one thing.
Oh Wow.
Oh sex lives <unk> in terms of Ooh. This subscribe as a obviously, we have had strong growth and U.S. subscriptions and I think the thing to remember.
Wall Street Journal subscriptions is that.
Once you have a subscriber you also have an opportunity to sell it was so, particularly saying growth for example in a subscription is coming from uncle wants to digital <unk>, Tibetans and as well as that from the journal to better and then for the more specialist Wall Street Journal subscribers, there's an opportunity just.
So do up sell them to out premium business.
That's what you obviously have a high yield.
Advertising clearly traffic has been particularly strolled there had been as you may well be aware of some concerns early in the code. The cross is about.
Blocking those ads related to encode it crosses coverage.
Gradually that's a problem has diminished and so we all noticing that.
The amount of advertising were getting is matching not quite but to some extent significant increases in traffic we've heard across the wall Street Journal and market works, we noticed that check out the charging has increased the custom advertising is is also a <unk> a friend to a certain extent <unk>.
Medic Grussing from business quite frankly, it's an extraordinary opportunity because big clients are coming straight to the wall Street journal onto other publishing houses around the world and they want to deal directly with those are rather than the necessarily through an advertising agency.
And.
Well this is at the moment a short term for <unk>. There are indications that this may very well be come a long term trip.
I think I'd like to be on the other thing that I would add to that is the other placing thing that we've seen is the average i. agent.
So we did have an average age of around 60, and it's an hour around 47.
<unk>.
And if I could further called Susan by saying as what we've noticed for example of a wall Street Journal leaders or Apple News gloss is historically, there's been shall we say a disproportionate number of men reading the Wall Street Journal, the bride goes around 75% mild 25% female.
Just a this moment the readership of the Wall Street Journal on the.
The couple of news plus.
So it is <unk> majority women minority man.
Thank you unless you know global to pick on X. question. Please [noise].
Absolutely.
The next question comes from.
And she'll write costs key from.
Please please go ahead.
<unk> heart so.
They just want you got.
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Yield when you've given us a good fried work on what happens on quantum leap vices that but just interested whereby you sleepy.
An opportunity to regard Shiites and my daughter's sportsblog skills longer Tim If you think they can't get used to be 80, <unk> deciding you I mean do you think that's that's warranted given some of the family <unk> interested yeah. So <unk> on that issue and secondly, you happen to quantify.
Potential impact.
<unk>.
Eat Keith Cool <unk> and do you think without continued to remind you place beyond by.
<unk>.
Ensured first of all on the sports rods, obviously, it's inappropriate to go into detail at this stage, but the obviously needs to be a fundamental research. The idea that things will suddenly returned to normal. This season is absurd. It's not just the quantity of games is the quality of the experience and that has obviously been diminish.
And that we used to us to apply longer term <unk> in essence there is.
Reset reality.
And ensure interest in relation to your question on me, we haven't given that the key for but well I can say if we implemented the nation is I'm a 19th March in relation to me and the impact of <unk> trade with 6 million thing you can use out of the proxy feel run right and we haven't made any announcement as to any further extension in nice yet.
Mm.
Thank you and show.
Well if I go next question please.
Absolutely.
The next question comes from Greg Hubert from her research partners.
Oh, Thank you high on the newspaper side in Australia, I'm I'm, a cost cutting inside or what do you smell has been written out there.
<unk> your newspapers some of them down there you shutting down the hard copy version and go into two only and stuff can you just.
Talk a little bit further about that and just.
Just curious what what percentage of your.
Prints subs down there wouldn't be shut down there.
I normally it's as a business model for example that more because let me just like only 10 15, 20% of the subs down there I mean, how significant is that that's my first question.
Second question is like if a newspaper side as well just generally.
Do you think you have a lot more costs you can take out of the U.S. <unk>.
<unk> U.K. in Australia give a lot more costs you could take out in reaction to this virus situation. Thank you.
[noise] contact the second question pose Craig.
Constantly reviewing cause and that those costs in headquarters, where there's <unk> significant reductions in in recent days.
Through we're looking for fishing season text [noise], we're looking for the efficiencies that come from the close the coordination that the real use been under way in in recent years, it's not a new phenomenon, but it gives us an opportunity to look across businesses.
Very very closely measure different costs levels, and and respond appropriately while we're not going to do his code cost in a way that undermines the the editorial integrity of the looting news organization in the world.
[noise] and high interest in relation to the Mafia studying Australia to the mall tents with these printing at the moment like community enough tips, which you know description relations today advertising relation products and as well, but mentioned we are to taking a detail strategic you with the entire regional community <unk> data in Australia. So the regional.
<unk>, we'll have stops attached to the but not the communities and then just a supplement on the costs side, I mean, I agree and it kind of these points, but we do believe that across fallout businesses on a global scale, particularly when we think that out backup functions that we do have some significant opportunities that we can walk we have seen actively working on.
<unk> 12 mom, particularly looking at tech, but we do believe that days a lot more opportunities we can do with gold in the sky if that actually me.
Thank you Greg almost like our next question. Please.
Absolutely and as a reminder, participants you may pressed star one to ask a question.
Our next question comes from Brian Hung from morning Star.
Oh that <unk>.
The current bottom and help.
But you have going for news coop, and well does it make it it's more complicated especially for.
Sales and also Susan D. in payment charge type books so.
Well that more driven by changes assumptions related to the.
<unk>, Oh, Hey, you use okay.
[laughter] folks till now okay.
[noise], Oh, <unk> simplification was a preexisting program, but to a certain extent you might well be correct in the various things are big expedited Ah. During this period of crosses what what I would like to say specifically around simplification is that.
Where we're pleased that the nom transaction has progressed actually we had to fight the charlesbank, who have a preexisting specialist expertise in in that area will be able to make a significant success with the business.
Can tell from the 10 or about Clinton comments about us dry or that there is obviously a strategic review about print holding as well under way. So a simplification processes stuff unfinished as part of that is that when he came to <unk> the value inherent in for example to Jones Wizard of Oz reported last week.
Area numbers to those of the New York Times about who's figures and all fully albeit in the current news and information services segment.
If you you think of the journey in recent years that the so that blip or the early style of the local media group It <unk> and all the other started village the acquisition of real to the person's Apollo Quinn, we all are rather different more specialized company than we were a few years ago.
And try and just in relation to your question on Fox, telling me and payment Yeah. We do look at these from it days you have to stick to it all sexual knock it multiple perspective, and clearly if they didn't intact at definitely affected out trends, resulting in lower expected full stop rises and the impact of <unk> to have <unk>.
Appetite advertising I.T.T. customers and conventional subscription revenue.
So when we combine all of dies, we thought it was appropriate to take any payment awful.
Okay.
That's a a call your are there any more question.
There are no further questions at this time and I'd like to turn the conference back over to you think you.
Right well. Thank you <unk>. Thank you for all for it is very how great day, and most importantly, say say what process.
[laughter].
[noise] just concluded stays call. Thank you for your participation here may now disconnect.
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