Q2 2021 News Corp Earnings Call

[music].

Thank you for standing by and we will get begin momentarily again, thank you for standing by.

Yeah.

[music].

And.

Oh, Oh Oh.

[music].

Yeah.

[music].

Please standby.

We're about to begin.

Okay.

Good day.

And welcome to the News Corp, one Q fiscal 'twenty 'twenty One conference call.

Today's conference is being recorded.

Media will be on a listen only basis at this time I would like to turn the conference over to Mike Florin Senior Vice President and head of Investor Relations. Please go ahead.

Thank you very much alley, and Hello, everyone and welcome to the News Corp, 's fiscal second quarter 2021 earnings call.

Our earnings press release about 30 minutes ago, and now posted on our website and spark dot com on the call today are Robert Thomson, Chief Executive and Susan to Michel Chief Financial Officer.

And with the prepared remarks, and then we'll be happy to take questions from the investment community.

This call May include certain forward looking information with respect to news of course of business and strategy actual results could differ materially from what it said news corp's form 10-K, and form 10-Q filings identify risks and uncertainties that could cause actual results to differ and contain cautionary statements regarding forward looking information.

Additionally, this call will include certain non-GAAP financial measurements, such as total segment EBITDA adjusted segment EBITDA and adjusted EPS, the definitions and GAAP to non-GAAP reconciliations of such measures can be found and our earnings release.

I'll pass it over to Robert Thomson for some opening comments.

Thank you Bob.

Of course, this country and around the world and so many places for so many people. These past few months of being characterized by considerable upheaval.

The political financial and health related simulations and turmoil deeply profoundly affecting many families of economies and the communities Archrock at all on this call and your families have.

I've been weathering, the storm safely and sorry.

And in the midst of this true mode, which has been the severe stress test for individuals and businesses and countries.

Ratified to report the news Corp has navigated the turbulence and to be candid significantly very significantly increased profitability. We notice of three months ago and Thats. The first quarter was particularly robust and so I am pleased to report that our second quarter results were even more robust and this burgeoning is a tribute to the ethics.

And the commitment and the professionalism of all of our employees and to the enduring value of the company's culture guided by ribbon moving.

In fact, the second quarter of fiscal year 2021 was the most profitable quarter since beginning of the school was launched more than seven years ago.

And the other significant records established we have the largest of profits for Dow Jones and since the acquisition of the company in December 2007, while we reported a 77% rise in EBITDA and the subscription video services, where and Fox Hill screening customers heat and historic high.

And we also benefited from lower costs.

The digital real estate services move.

Accounted for approximately 80% of that segments EBITDA growth.

And the history was made and when the New York Post reported a profit for the quarter ending for the year to date that is the first profit involved and times. After the released for what was a chronic lossmaking masthead founded in Asia and other one by Alexander Hamilton.

In short digital real estate services book publishing and Dow Jones, all performed powerful and Q2 collectively generating segment EBITDA growth of close to 40%. The continuing expansion highlights the profound potential of the company to increase profits and generate value for our shareholders.

And into the future.

These resilient results are founded on our long term strategic shift and the company's assets, the chairman Digitization and a relentless discipline on costs.

Adamant that we would not be victims of digital dystopia, whether we would contribute to fashion and more fruitful future for of content creators and we are seeing the results of that resolve it is fair to say the regulators globally have joined for the digital docs.

And the second quarter every segment and news Corps shows marked operating improvements and contributed meaningfully to our profitability. We continue to see increased cooperation across the company with valuable digital lessons and inside of that each business rigorously applied for the benefit of role and to the benefit of shareholders.

While the overall revenues I talked about $2 4 billion declined three 3% year on year that was fundamentally due to the sale of news America marketing and 2020.

On an adjusted basis are more of a genuine like for like comparison revenues rose, 2%. Despite the pernicious consequences of COVID-19.

Segment EBITDA for the quarter.

It was $497 million, the highest of any quarter since salary and combination in 'twenty the entity.

Yeah, other year that represents profitability and growth of 40%, while our free cash flow available to news Corp for the half rose by $373 million, Okay, and they make is indeed, the stress test and news Corp is surely passing that test.

And the digital real estate services segment, and then there's revenue growth was 28% and that kind of the spike restrictions in certain states on inspections and our sales.

Bain and other support of the acquisition of move it is worth noting that we believe the net cost of this company, including the substantial settlement, we ultimately receive for the Zillow and get out trade secret lawsuit against them is the only a fraction of its current value net net we paid considerably less than $1 billion for moving 2014, we believe it.

And is worth of vast LIBOR today, and how much will it be whereas in five years as the digitization of styles and the world's largest property market continues on pace.

At the time of our acquisition of real to Dot Com was of scrambling for enterprise platform with modest profitability and fewer of the 30 million monthly users. There were some try and talk about the acquisition, but we were absolutely clear that our media platforms and growing digital expertise plus our experience with out of area in Australia.

Enable us to transform the company.

And the first half of this fiscal year Reorders contributed more to our profit growth and the brilliant Bacon that is already at eight in Australia. So how much is real to work now and how much of the Haynesville well I will let you do the math to help you do that math a few specifics real good traffic is now of outgrowing zillow for non.

And of the past 21 months, according to Comscore, including the last 11 months and Iraq.

According to our internal metrics average unique monthly users and the second quarter was 37% higher than the prior year and we reached each month on average 80 million people.

Just to give you a sense of the sides scale and loyalty, we had $8 seven total billion page views in the.

Second quarter more than one page for every person on our planet and that number does not include photo galleries of houses multiply the number of visitors by the images and those galleries and you get a sense of the scale of the intense interaction by users traffic has continued to grow and since the quarters and with the unique users reaching a record.

$94 million for the month of January.

During Q2.

And this has expanded and the retro market through its acquisition of mobile and online property management platform that focuses on do it yourself landlords and tenants. This is significant given the fact that DIY landlords own and manage about three quarters of rentals and the U S and the retro market. According to the U S Census Bureau data is a 500 billion per.

For the year dollars per year of business. So the addressable market is appreciable and depreciating.

And Q2, realtor Dot com launched and advertising partnership with rocket mortgage while continuing to build and even more seamless process for consumers wishing to qualified for mortgages to purchase.

In January and Rio to announce the partnership with Qualia to provide simplified digital home closings and allowing for greater online collaboration between agents and their clients.

Let us be very clear buying of Hermes is by far the largest investment that the most families will make and the purchase of around debt acquisition, whether it be security of mortgage was solid with electricity of broadband provider unnecessary and valuable adjacencies the hub.

The purchase is at the very center of the cluster of Commerce and Realtors are at the very center of that purchase.

From a macro perspective, the overall housing market in the U S. Not only has proven to be resilient during a time of crisis. It is demonstrated.

Demonstrated tangible strength with many positive signs of activity, even with listing volumes at historic levels.

And as mortgage rates at the minimum and family of expanding their search for better and larger Heinz and new locations. There is reason to be optimistic about the trajectory of the sector.

Resilience and optimism also characterize the housing market and in Australia, where the emergence from Lockdowns and the quarter has led to significant signs of recovery and <unk>.

Driver is still a growing economy and it will continue to benefit from its location in the world's fastest growing region. The deep ties with our Asia, including India gave you a distinct advantage along with its reliable legal procedures and stable coherent courage and political system.

We believe it is still a country that is far from maximizing its potential and the growth opportunities on a pronounced.

And the second quarter <unk> acquired a controlling interest and a lot of our technology is making it the majority of and out of the large and growing Indian digital real estate portal, including housing dot com and prop target.

Hesitation by audience allow our around the indias fastest growing digital real estate business and India itself is one of the world's fastest growing economies. So the possibilities are we.

We are on the Tracey Fellows leadership by many measures the world's largest digital property company and we are acutely focused on the countries that we believe have the largest digital property potential.

Meanwhile, Hopper columns and one of its close the loop pretty quarters with double digit growth across every category.

For many successful news releases as well and the backlist bolster both revenue and profitability and as did our continued growth and digital.

Brian Murray and the team.

And at a relatively early stage of the development of audiobooks and the proliferation of audio devices for the home.

And the increased the demand for our content on.

Im not sure of that all investors have yet comprehended, the full value of that digital opportunity.

As for the revenue titles and the successful catalog. There was didn't you see thats coming by Rachel Hollis the happening in a hurry cookbook, Steve do you see the greatest secret by around the the frontier Forlese Ree Drummond and the continuing the strong demand for Magnolia table volume two by Joe on the guidance and then and January there was Richardson.

We have the series of non Bridget and book Spigelia, Quinn, which are prospering and given the popularity of the of part of the series for which of your series has recently been announced and all revenues at Harpercollins ascend the 23% in the quarter and segment EBITDA surged, 65% of the prior year.

Dow Jones also set records this quarter, including having its highest absolute EBITDA since news Corp acquired the company and late 2007 with segment EBITDA up 43%, while the New York Times eight out of eight 1% increase.

Advertising spend of 29% the highest quarter and Dow Jones history, well of digital advertising at the New York Times fell by 2%.

Clearly print was challenged during the pandemic period, and which distribution was compromised, but I hope of all advertising was down just 4% comparing dramatically with the New York times, where it slumped 19%.

In our professional information business risk and compliance continues its record of extraordinary expansion with year over year revenue growth accelerating to 21% share.

And to Mark's risk and compliance <unk> second consecutive quarter of double digit revenue growth year over year.

Given the international attention with both the U S and China and pricing controls on companies and for the New administration and the U S and clients are tougher regulation, how Brian on the prospects for risk and compliance if anyone on this call works for a company that has not yet of client suggests that new remedy that derivation.

Traffic and subscribers across Dow Jones properties of surging and Elba and the team are determined to make the most of the opportunity.

WSJ digital only subscriptions were up 28% and market watch also had a successful digital subscription launch in Q2, we have always insisted that our strategy is to upsell at Dow Jones, given non per a portfolio and some of it's worth noting that more than 70% of those market watch subscribers charters.

Bundle that included the subscription to balance.

As for traffic average monthly unique users across the Dow Jones digital network were up 48% and the quarter, reaching $127 million driven by 64% growth at both the Wall Street Journal and.

Parents.

And subscription video services, our strategy to reshape the Fox total group as of next generation subscription business is clearly gaining traction with total closing paid subscriptions, increasing 12% and setting a new record of either.

<unk> three <unk> three 1 billion.

<unk> now accounts for 40% of <unk> sales paying subscriber base with more than $1 3 million streaming subscribers, the actual growth rate and streaming subscribers with the other 90% driven by the strength of bench, which launched last may and the continued expansion of KAR.

In the past there's been skepticism about whether we could transition from our reliance on traditional broadcast but those concerns of proven and unfounded and folks tell is now the company with a diverse portfolio and much momentum.

I would like to repeat the EBITDA at the subscription video services segment for the quarter Rose, 77% from the same quarter last year and for the first half segment EBITDA was 34% higher.

Gross has been crucial for the success.

But we have the leadership team and Fox sales did.

We advise you on Makena and Patrick Delany, and it's been absolutely focused on reviewing every aspect of the company's performance and diligently reducing cost where appropriate guidance on us.

For cider and discipline has contributed to the transformation of the company and given us a powerful platform and much optionality for the future.

We have now secured long term rights to the three most popular sports and the country Aussie rules Rugby league and cricket, which had to stay on the success in the summer with the two of the trial for Indiana.

Record after record was set on the cricket pitch and on interest rate, whether the traditional screens for a digital device.

And that multi platform future is now secure with both Australia and rules and rugby and thanks to our partners at Telstra over 3 million large power customers will have the opportunity to transition to K R. The coming months, so that they can watch the air James when they want to watch how they want to watch where they want to watch and on whatever.

They want to launch this is the monumental environment for Boston.

Our news media segment also contributed meaningfully to use of course profitability this quarter with digital AD growth and the UK and at the new of protest.

We had indeed indicated that the new oil price was on a path towards profitability and it certainly achieved that goal and the second quarter Josh.

And now is to enjoy its long term profitability given the challenges in that sector.

Digital AD growth of deposed was 64%.

Year over year for the quarter of digital advertising accounted for nearly 90% of the total page views of the pros were up 37%.

Also of quarter in which the post reported a significant victory for all media for the freedom of the press by standing Resolute and principled against censorship imposed by the Twitter Ulf.

Ultimately towards the realize it is made and egregious mistakes and frankly reversed its decision.

Generalists and not laptops with laptops journalists and lots of geographers jealous of about one out of journalists are awake to that propel and responsibilities.

And Australia, we were Fortunately ahead of the curve and transitioning many of our local and regional properties through digital platforms, which help them weather the storm of Lockdown or Australia and leadership on the Michael Miller was disciplined and reducing costs and yet remain ambitious for our news platforms. During this time of transition for Germany.

And we're of record Brooks share real leadership and the UK across the have assets like the Sun and the times.

The emerging digital businesses and it was I right, and therefore, which reached nearly 5 million business.

And both Australia, and the UK, we are using our skills and video and audio to enhance our traditional platforms and that is clear of times radio which is an extension of the newspaper founded in London, and 70 and 85.

On these calls I have often referenced the ongoing debate with what is loosely call. The digital I personally I regard that moniker is the euphemism.

We are at a pivotal moment of the discussions and Australia with new regulations, and new terms of trade will be introduced but that the bank now extends across the globe. There is not a single series digital regulator anywhere in the world who is not examining the opacity of algorithms the integrity of personal data the social value of professional journalism and the dysfunctional for July.

Market.

This has been an imperative for new school for far more than a decade I gave evidence of the health of Lord and landed on this very subject in 2007.

And it has been and imperative because we truly care about the social value of journalism, and we believe that the social value is on commercial value.

This enduring also on the <unk> would not have been successful without the sales and support of Rupert and Lachlan Murdoch and the new scope of work.

We expect that the new tech topography, and will benefit our company's financial for ships that is for certain and it will also have a material impact.

Not only the countries and which we operate but in every country.

And the ambitious and spotted young woman starting of digital news thoughts and Nigeria or in Birmingham, England with branding and Alabama now has a far better.

For a better chance of sustainable success.

Finally, I want to thank all who have contributed to the singular success of news Corp. This historic quarter.

All of our employees who've contributed each day encourages compassionate wagons.

And those individuals for what they have done and for what they continue to do for the company and for their communities. Thank you.

While the macro environment remains unpredictable our goal is to ensure the new score is best positioned for long term success and that add value is absolutely appreciated by investors and now I hand, it to Susan fiduciary for some wise words.

Thank you Robert.

Fiscal 2021, the second quarter total revenues for the $2 4 billion of decline of 3% versus the prior.

Yeah, well total segment EBITDA was $497 million up 14% and you're right.

Reflecting strong performance across all of our key reportable segments, driven by a combination of increased operating changes and cost reductions. This.

This is the highest quarterly segment EBITDA for the company was formed in 2000 and finishing.

On an adjusted basis, which excludes the impact from the acquisition from divestitures and nice nice play the sale of News America marketing and the fourth quarter of fiscal 2020, if all of those.

Currency fluctuations and other items as disclosed in our release revenues rose, 2%, while total segment EBITDA free cash in on.

And.

Net income for the quarter was $261 million compared to $103 million and the pie here for the course, and we reported diluted earnings per share of 39 and.

Compared to 14 states and the prior year.

Adjusted EPS for the 34 cents and of course, the compared with <unk>.

Yeah.

Turning now to the operating segments digital real estate services segment revenue of $339 million, an increase of sustained the same attached the prior year, which is more than doubled the rise from the first quarter driven by another record quarterly the whole bunch of Sydney's on an adjusted basis revenues increased 11%.

Segment, EBITDA rose, 20% of $142 million or 19% on on adjusted basis, Despite higher spending which was in contrast for the first quarter.

Results also included $6 million of costs associated with the acquisition of the vial and the a lot of transaction at Rei.

And these operating results accounted for over 75% of segment, the refugee crisis and approximately 80% of segment EBITDA guidance this quarter.

And the east revenues accelerated to $165 million of 'twenty, I think you're right the increase with real estate revenues for I think 50%.

And as Robert mentioned real total Com traffic reached 80 million average monthly unique users, reflecting an increase of 37% year Ice's Macquarie and just set the acceleration for 44%.

The monthly average lead flow remained very strong growing cash descent.

Like the first quarter, we saw strong growth and the performance based massaro model, which accounted for approximately 50% of Tyson and move revenues and the quarter benefiting from the growth and lead volume and higher home prices and real estate transaction places and.

And I and we did we see an acceleration and the revenue growth if they're of Ferro model of this quarter compared to the prior quarter, but we all thanks for all quiet and connection our traditional lead generation products, driven by strong customer demand, enabling increased losses and higher sell through.

As a referral revenue the recognized upon transaction closing is only around 20% of the associated revenues from leads generated in this quarter are reflected in the results.

This provides a strong pipeline through the balance of the Xi'an and continued favorable housing conditions.

These results are very encouraging and we remain focused on expanding our addressable market through the integration of key ancillary services, including a rocket mortgage partnership.

And these contributed $19 million for the segment EBITDA for this quarter versus the prior year driven by the strong topline guidance actually.

The previously indicated we are increasing every day.

Moving real true given the rapid performance and lead volume and further expansion into Adjacencies.

Revenues at all the acreage for a 6% of $184 million, reflecting of $12 million of 7% benefit from currency fluctuations.

COVID-19 restrictions eased during the quarter, including the removal of property inspection and restrictions and Melbourne.

Residential listings for the course of like 10%, including 25% gross and net showing all of them and starting to think correct and Sydney.

And you develop a project launches increased 12% on the prior year.

<unk> results benefited from growth and residential get pressed juice, which was offset by declines in conventional and Asia. It also it's worth remembering that as a consequence of claim it.

Implemented price increase in July.

Please refer to our earnings release and the conference call. Following this call for more details.

Turning to subscription video services segment revenue for the course of was $511 million up 2% versus the prior year and inclusion of 33 million.

Millions of 7% positive impact from foreign currency fluctuations.

The adjusted revenues for that 5% and improvement on the Q1 decline of 7% benefiting from the underwriting broadcast subscription revenue declines and the expansion of OTT revenues.

Fox tells closing tight subscriber base reached over $3.3 million as a percent of day. She wanted of 12% year over year with OTT expanding choice of $1 3 million paying subscribers close to double the prior use of lumber.

Share, reaching 624000 and finished at 400 and so she wants out from paying subscribers.

Kayo subscribers declined slightly quarter Ive of course that you just seasonality, but the decline was much less pronounced from last year as the business successfully manage the transition from winter to spring and summer of sporting codes underpinned by the exclusive exclusive cricket content.

Residential broadcast subscribers declined about 11% to approximately $1 8 million.

Relatively consistent with last quarter.

So subscribers declined 18% year, I think even for 218000 and with the trend and creating sequentially, having bottomed out at 86000, and the fourth quarter of fiscal 'twenty and 'twenty at the consequence of the pandemic.

Broadcast Chad was somewhat elevated at 17, the Hawk the census of 16% and the prior year impacted by a strategy to reduce promotional offers which resulted in the roll off of lower op to subscribers.

The financial benefit is reflected in the 3% increase in Opex.

Australia and dollars.

Segment, EBITDA increased 77% to 124 million and tell us the continuing cost transformation of the Fox till July to rightsize the cost base with the driver of profitability total cost declined approximately 10% and clean and safe.

$5 million the flow of sports programming rights and production costs, which was primarily driven by savings from renegotiated sports rights, partially offset by the $20 million negative impact related to the deferral of phase cost from the fourth quarter of fiscal 2020.

Expenses also benefited from lower its time and programming costs and lower overheads some of the.

The cost benefit the timing of relationship which will raise the reverse life and the year I will touch on the Plaza.

Moving on to Dow Jones, Dow Jones delivered its highest revenue quarter since separation and 2000 and fishing and highest segment EBITDA quarter for today's call for acquisition and 2000 and Stephan.

Revenue for the course of a 446 million total is up 4% per page the pie and digital revenues accounted for 70% of total revenues this quarter up six percentage points from the prior year.

Circulation revenues rose, 8% due to credit and digital circulation revenues, partially offset by lower single copy and print volume still impacted by COVID-19.

As Robert mentioned, Dow Jones of Guyana, Chief Wrinkled subscriptions in the course of an average subscription and so it's consumer products for the quarter exceeded 4 million up 18% from the prior year and all of that digital only subscriptions like the $3 million up 29% and you're right for you.

Total Wall Street Channel day were $3 2 million average subscription for the course of up nearly 19% from the prior year, the digital only subscriptions growing 28% to nearly $2 5 million.

Revenues from Dow Jones risks and compliance grew 21%, which was a faster growth rate and the path straight courses by for all professional information business revenues rose 4%.

At the total revenues, which accounted for 26% of revenues. This quarter declines are for the center of $158 million a marked improvement from the 17% decline last quarter as Robert mentioned, we had another record quarter for digital advertising and 29% of digital accounting for 58% of advertising revenue for the second quarter.

Uh huh.

So Christ all categories, particularly in technology.

Print advertising revenues declined 29% year over year, which was an improvement from the 39% decline and the first quarter.

Dow Jones and segment EBITDA for the quarter was 43% to $109 million with margin expanding to life of 24% and I'll put my seven percentage points versus the prior year comps declined almost 5% this quarter due to lower print volumes and other discretionary savings.

And book publishing Harpercollins types of 23% revenue growth of $544 million and a 65% segment EBITDA to $104 million locking of the best quarterly performance in its history.

And your growth was strong across all categories with double digit guidance Robert mentioned the debt of the published this quarter, which included strong performances from numerous losses, including Rachel Hollis rendezvous and Ree Drummond Joanna Gaines of David following among others.

Similar to what we saw in the past two quarters, we are continuing to benefit from a strong rebound in April I for all digital files up 15% year over year, a book sales increased 21% year over year with guidance in all categories.

Downloadable audiobooks increased 10% year I for yeah.

We've continued to see higher on lifestyles, and and particularly benefited from strong orders from Amazon and other E commerce platforms. During the holiday season, but perhaps more importantly, we are seeing very strong consumption levels likely benefiting from stay at home nations and the continuous flow of new content.

Revenues increased at low double digits across the back please and notwithstanding I contributed 55% of sales this quarter down from 58% last year juice and the larger mix of the front list titles.

Harper Collins, the Guy and demonstrated strong operating leverage despite of 60% of increasing costs in part due to royalties and higher production expenses related to the successful top line performance margins improved by almost five percentage points.

Turning to news media. Despite ongoing challenges, we remained focused on right sizing the cost base and moving towards the digital helped by a moderation in advertising revenue trends and.

Revenues for the course of over $573 million down 29% versus the prior year of which the impact from the divestment of news American marketing of couch. It for the majority of the decline.

On an adjusted basis, which excludes the impact from the divestment of man and unruly and the other items mentioned and our lease revenues declined 9%, which is an improvement from the 60% decline for the first quarter.

The decline also reflects the $34 million of 4% negative impact from the equation or transition to digital obsession regional and community newspapers in Australia.

Circulation and subscription revenues rose, 5% as of now.

$9 million of 4% benefit from currency fluctuations strong digital paid subscriber growth and couple of price increases offset lower news sales related to COVID-19.

I for all of the U R E trade and seem like current see what best reflect the U K and Australia compared to the first quarter.

Circulation revenues accounted for 45% of total segment revenues.

And was slightly higher but not surprising this quarter and the mix of revenues become more recurring and predictable.

Advertising revenue fell 200, and sushi one of many adults of 48% on a reported basis of which of $191 million of 40% was from the sale and leaseback of marketing and $28 million of 6% with relation to the negative impact from the equation or transition to digital assertion regional and community torsion from Australia.

The remainder of the decline was true to the overall weakness and the print advertising market on a per.

Positive Tonight, the New York place continue to outperform with advertising revenues up 23% and as Robert mentioned digital advertising up 64% and tracked digital revenues at the New York High-stick stage of 50% of title revenues this quarter and I for all the New York Post had its highest digital revenue since 2002 a shame.

Segment EBITDA for the course of the $66 million flat with the prior year. Despite the $22 million. So a one time benefit and the prior year related to a special blend of session warranty related claims and the UK and the absence of the modest contribution from news America marketing.

Adjusted segment EBITDA increased 5%, which included the $5 million positive contribution from the New York Post.

I would now like to talk about some things and the upcoming quarter and the second half over all we expect to see some slowdown and the second half results and forecasting remaining particularly challenging given the ongoing global COVID-19 pandemic.

And digital real estate services as Ori I know you said national residential listings and Australia for January and was flat to the prior year.

Results will reflect a small loss related to the consolidation of a lot of technologies and the second half. Please refer to <unk> press release and earnings call for more details.

We remain encouraged by the traffic and lead volume trends, which are expected to drive higher revenues and the second half. Despite the historically light listing volumes across the industry.

And we expect these higher revenues to fund the at least $40 million of additional reinvestments and the second half compared to the prior year.

Areas, such as brand marketing and product development and it looks like the some gaining market share and expanding into adjacencies.

And subscription video services, we of St. Joe posture and continue to increase juice of the ongoing focus on opex and seasonal trends with the end of each of sports how of the kayak has remained resilient and now OTT subscriber growth like for like the and should remain strong.

We expect EBITDA results for the second half to be more challenged change in parts of the lapping of the price and cost savings as a reminder, fiscal 2024th quarter results included a $70 million cost benefit due to the deferral of sports rights and production costs related to Covid non chain.

We now expect for your overall cost declines given the better than expected revenue performance to be more modest than we had initially expected with a net reduction of less than 100 million. Australian dollars. This includes approximately 80 million of Australian dollars of higher sports cost for the second half of fiscal 2021, particularly in the fourth quarter of compared to the proud of your peer.

<unk>.

At Dow Jones overall revenue trends remain favorable compared to the prior year, including strong digital advertising growth.

As we look for the rest of the and we continue to expect to reinvest and the business at the site the self driving revenue growth through its digital assets and expect second half expenses second half expenses to increase modestly compared to the prior year. In addition, third quarter will face a more difficult digital advertising price comparison.

And book publishing overall industry trends remain favorable and we continue to monitor closely the sustainability of recent consumer spending patterns, such as the increasing free time for consumers to read and the increase in the average number of books purchased.

The second half comparable for will be tough, particularly in the fourth quarter and given the material outperformance last year and as we lap some of the initial benefits at the outset of kind of of thought chain.

At news media at the ongoing National Lockdown, and the U K and domestic travel restrictions and Australia continue to put pressure on print circulation, especially weekday and Easter sales and are also creating increased on social T on advertising spend across the nice cash increase cost declines and the second half are expected to moderate from the first half right as we lap some.

COVID-19 exciting initiatives as well as the divestment of news America marketing and the closure of digital transition of some of that ease patency of Australia and the fourth quarter.

The other segment for the second half, we expect at least $50 million increase in cost driven by a combination of higher equity comp related to the stock price performance and the absence of the bonus reductions across the senior executive team and the price in response to COVID-19, as well as additional costs related to the implementation of the global shared services initiative with the.

Let me hand, it over to the operator for Q&A.

Thank you.

And if you would like to ask a question please signal and by pressing star one on your telephone keypad, if youre using a speaker phone. Please make sure. Your mute function is turned off to the lawyers did not reach our equipment.

Thank you for your question has been answered you may remove yourself by pressing star two.

Reminder, if you would like to ask a question. Please signal by pressing star one on your telephone keypad.

And we'll go ahead and take our first question from Alexia cadre of me from J P. Morgan. Please go ahead.

Hi, This is bill Pan on board.

Yeah. Thanks for taking on the question digital oven have you had the Dow Jones continues to outperform some of your peers and I'm wondering if there's any sort of the callout and goodbye.

Why do you think of doing relatively quiet well on the right.

The other calls you know on advertising products driving the outperformance.

And then just from Bob.

But are resolved and the five months.

And the spring and caught up what indicators of the trends that you're.

And we're looking for the.

Department of the next steps for that asset.

Yes.

Well first of all of it.

And so we are of great team of Dow Jones, I'd, probably on the material to draw students come out of the Chief revenue Officer has done a sterling job of developing our digital expertise and thats across WSJ don't call market share balance and beyond.

And the the increase has been across categories, but also of new categories and cost of advertising.

And it's clear that if you want.

Just the safe space, but the space that is the brand enhancing the on an audience. That's the Martha Stewart for literally in the world and Dare I say, it rod well healed and Dow Jones has comparative advantages just of one broader point to bear in mind with the even the death of the cookie.

The audience and the U S. For example will be particularly valuable and Dow Jones is a significant component of the net when you add together.

The cross out U S businesses and this is T J P and yet as you can tell from the number but we have a close to 350 million monthly uniques and so that's in the advertising audience. The two board for Dow Jones, but for all of their properties.

And I think just to touch it on Robert's comments, we also of the Josh on the late for the sales team of Dutch I and for being very focused over the past 18 months on and proving out that take capabilities and Upskilling, the sales force and improving yield management, which we now believe we're starting to see the benefit of all pay in addition to obviously the audience growth.

And just in relation to the second question for Fox.

And when we think about the trends that we're looking at home and the next steps for the assets were clearly OTT will be and ongoing focus for us and that business.

As well as the stability and broadcast of the tape cyclists on the management of the base of subscribers for the full cost and they are clearly focused on costs as well and they've done a tremendous job in the first half of it really has the loss of 10 months since Covid started and taking out on some of the underlying cost of the business there and the renegotiation of sports and entertainment.

And contracts.

And particularly looking forward to the growth I think the I T T properties.

The two.

From government Susan's comments, let's consider the other foxtail narrative is tried and true questions will be asked a couple of quarters ago, whether we would need to put extra capital and the Fox style and then were asked where the some spec one of the bought more speculation than the speculation and.

And the truth is that the successful development of the business has given us real options and.

Our immediate task and the team's task is to keep driving the business. The keeps driving we've obviously made a fairly successful migration to streaming up 90% year on year and we obviously have is we've kind of I wouldnt binge and we obviously have more work ahead, but the path to the future of certainly pay for the possibility.

Hey, thanks.

Below the.

And we will take our next question. Please.

You bet, we will go ahead and hear from Kane Hannan from Goldman Sachs. Please go ahead.

Good morning, guys and congratulations on the results just two for me Firstly, just the move revenue outlook and you're talking about 40 million Bucks for the incremental investment and seeing strong traffic growth you won't have the I think concessions and the fourth quarter and you think it's possible that that revenue growth continues to accelerate in the second half or just how should we think about the revenue trends and then second.

Just on the global shared services initiative I think it was the $100 million bucket you were talking about the full year result, just given some of these increasing investment and you were talking to and the second half just interested how we should be thinking about that program in FY 'twenty, two and whether there's any change for those sorts of targets.

Thanks Kane on Mike.

And those questions and real quick can add all of them and supplement sales. He will so just in relation to the sustainability of the needs right. I mean, we remain very confident and the price of the business and are encouraged by the traffic and the lead volume since we talked about and our free prepared remarks of notwithstanding the industry listing volumes remain at historically low levels.

We do expect with the revenue growth the cost will increase and I think the interesting thing Tonight. When we think about the results for this quarter. This is the first courthouse and actually the cost increase this quarter and so it was really the top line revenue crossed it was dropping down to sort of offline.

So we do think that the revenue growth will continue and we didn't want the sky of loss cost and the reinvestment areas that I mentioned marketing and product development.

And just in relation to shared services.

Yeah, we did quite a $100 million for financial year 'twenty, two we're still holding that number at the stage notwithstanding the conflict of with some classes of business. We do still think that there are enormous opportunities, but it will require obviously a lot of work and reconfiguration of the assistance and on top of oxide savings, but at this stage of the guidance is still on the 2 billion will flow.

And actually you touched on too.

And just to supplement the Susan and sources, particularly on <unk>.

And clearly we have to be somewhat cautious.

And the second half of the year simply because of the complications of Covid.

The lack of visibility of for many of our businesses and and.

And you can see that reflected in the.

Today, we of Sydney, taking nothing for granted the spot or the <unk>.

Excellent and so the Q2 results.

The.

Move the.

For us.

Positive at least in January of the David and the team of real too.

With the January normally of slower months unique users rose 37 per cent to $94 million and the lead volume remained robust.

Indicators, but we are taking nothing for granted.

Thanks Scott.

Thank you Kim.

And we will take our next question. Please.

Yes, the next well hear from and.

Joe Rykowski from Credit Suisse. Please go ahead.

Okay.

Hi, Robert Hi, Susan.

Got a couple of firstly within news media, obviously significant cost reductions and the quarter just interested and whether you can make any comments about the extent to which the ice cost reductions of feminine and you.

You've obviously indicated the print circulation might be challenged and future quarters saw that and I always thought of just resulting lower operating costs, which Mike might come back down the track.

And and whether you are in fact fee for the opportunities for cost reductions, we didnt within that division.

And then second question is around and <unk>.

Yes.

Following the announcement of the Telstra Lafosse uses and transitioning to Cai.

Do you have a sense for how many of the how many of those sick.

Sick of three meal and uses do you expect will transition and do you have any projections youre willing to share around how many of the dollars you'd expect to hold on until after that promotional period your father.

And you and maybe if I start with your first question just in relation to news media.

For you they say a lot of cost with the they thought and you Raj and some of that is obviously volume related and some of that will scale up and down depending on how this business is tried and lot of COVID-19, but there are all sorts of COVID-19.

And the net cost reductions and the change the big working on with had significant reduction in headcount that came through and the backend of last fiscal year that is obviously flowing through here.

But we do have a lot of costs that have come out in the idea of a hit spaces Wow now some of that naturally will come back in and that's the business is like and off but we would all for heights of thought that might be permanent and as we change the way the book going forward.

We also had in the back end of last year and significant reductions in marketing expenditure within the news media, we would expect to see some of that and start to come back in but not necessarily at the levels of like saying. So I think the balance of thought because we went forward and I do think actually that they're off to permanent cost reduction opportunities of the business and the working on within that segment on a lot of.

And that has to do with the restructuring of the business and the reconfiguration and.

And the teams are actively working on that.

And as for the transition from a lot of cost of care of it isn't the obviously the extraordinary opportunity for folks and.

Part of the Telstra and we'll be doing everything.

And I can sort of encourage their users to make that migration director of around a total of $3 2 million a lot of pass members of the.

For those who are interested and Aussie rules of rugby and.

Of the many sports on kind of this is an extraordinary opportunity to be able to watch a world class of streaming.

Preparation of work and the.

The.

Those who have used guy out of out.

I've experienced.

Its ability to.

And they showed one day and but many guy and simultaneously.

And that experience is definitely a compelling and sort of.

We believe that.

Large number of large Pos subscribers will make the migration, but it's so early in the process.

And at the moment.

Putting numbers out there, but with the given at the start of the winter sports seasons, and Australia, I think you'll start to see the metrics and in coming months and will be able to update you next quarter and.

And the only other thing to add to that would be that as we think about the six fighting off the chianti that Fox till now have even scale clearly more from the one given the introduction of also say well three weeks that subscribed the numbers to pick up we would expect the actual impact on revenue and EBITDA to be more back ended for you on them.

Got it that's very useful might be just the very quick follow up do you know if there's much out of the lap at the moment between the existing Cagliari sub space and and the last seasons.

But it's relatively small the hindrance.

Okay.

Well, Brian Thank you and ease of setup.

Yeah.

Thank you and Joe Ali we will take our next question. Please.

Thank you we will now hear from Craig Huber from Huber Research partners. Please go ahead.

Thank you Susan and wanted to hear a little bit further about the costs within your subscription video services and the remaining part of the here and maybe just.

Think of the next fiscal year anything out of the ordinary there you want to call on sort of you havent already touched on.

I guess, the probably the easiest way to maybe frame the cost and the second half of I expect them to be broadly in line with the cost for the first half which is net of any of the movements that we've obviously talked about with the deferral of the sports rights with the Roma.

We are reminded of the 48 hospitals and sold approximately $156 million, Australia and dollars of additional costs here on the due to the deferral of the play sports cough. So I think you know the the underlying conflict and so I've hit the Fox and they'll take Mcdonald's and starting to pay dividends, but clearly with coffee stop of lots of sports rights and the in the current need debt as of Friday.

I would say broadly speaking in line with the first half.

And then my follow on question real quickly ask if you think of the next fiscal year is there any boards sports programming contracts up for renewal of the mine had a significant jump and take into account on the models.

The next fiscal year, no I always got on with obviously just executed the.

The the renewals at the I felt and or else we have to fill it up now 'twenty 'twenty four 'twenty and 'twenty, seven and were not expecting and ex financially significant step ups from the overall basis on sports.

Great. Thank you.

Thank you Greg Alley, and we'll take our next question. Please.

It appears we have no further questions that does conclude our question and answer session for today I would now like to turn it over to our speakers for any additional or closing remarks.

Well, thank you very much the alley and thank you all for it.

Participating and we look forward to talking to you soon and have a great day and stay safe.

Take care.

And with that that does conclude today's call. Thank you for your participation you may now disconnect.

Hum.

[music].

Yeah.

Yeah.

And.

Yeah.

[music].

Okay.

And.

Yeah.

[music].

Yeah.

Uh huh.

Yeah.

[music].

Okay.

Yeah.

[music].

And.

[music].

Yes.

[music].

Thank you.

[music].

Okay.

Okay.

[music].

And then.

[music].

Good day.

And.

Okay.

[music].

Okay.

[music].

Okay.

Okay.

Great.

[music].

Okay.

[music].

And.

[music].

Okay.

[music].

Okay.

Yes.

[music].

Okay.

Right.

Yes.

And.

And.

Okay.

And.

[music].

Yes.

And then.

Okay.

Yes.

Please go ahead.

Okay.

[music].

Thanks.

Okay.

Yes.

And then.

And.

Okay.

Yes.

Okay.

[music].

Okay.

[music].

On the spending.

The.

[music] index.

Okay.

No.

Okay.

And.

[music].

Thanks.

Okay.

[music].

Okay.

Okay.

Okay.

Yes.

Okay.

Okay.

Okay.

Okay.

And.

Okay.

And.

[music].

Okay.

[music] book.

Yes.

[music].

And thank you.

True.

And.

Yes.

Okay.

Okay.

Okay.

Okay.

Okay.

And.

Okay.

Thanks.

Okay.

Okay.

[music].

And.

[music] range.

Okay.

Okay.

[music].

Okay.

Okay.

[music].

Okay.

[music].

Yes.

[music].

And.

Okay.

True.

[music].

Okay.

Okay.

Okay.

[music].

Good day.

And welcome to the News Corp, one Q fiscal 'twenty and 'twenty One conference call.

Today's conference is being recorded.

Media will be on a listen only basis at this time I would like to turn the conference over to Mike Florin Senior Vice President and head of Investor Relations. Please go ahead.

Thank you very much alley, and Hello, everyone and welcome to News Corp fiscal second quarter 2021 earnings call.

Our earnings press release about 30 minutes ago, and now posted on our website at news Corp. Dot com on the call today are Robert Thomson, Chief Executive and Susan from Hei, Chief Financial Officer Robert.

And with some prepared remarks, and then we'll be happy to take questions from the investment community.

This call May include certain forward looking information with respect to news of course of business and strategy actual results could differ materially from what it said.

Current form 10-K, and form 10-Q filings identifies risks and uncertainties that could cause the actual results to differ and contain cautionary statements regarding forward looking information.

Additionally, this call will include certain non-GAAP financial measurements, such as total segment EBITDA adjusted segment EBITDA and adjusted EPS, the definitions and GAAP to non-GAAP reconciliations of such measures can be found and our earnings release with that I'll pass it over to Robert Thomson for some opening comments.

Thank you Rod.

Across this country and around the world and so many places for so many people. These past few months of being characterized by considerable upheaval, we of social political and financial and health related tribulations and turmoil deeply and profoundly affecting many families of economies and the communities.

Adjusted all of this call and your families.

Had been weathering the storm safely and easily.

And the midst of this two mode, which has been the severe stress test for individuals and businesses and countries I'm Gratified to report the news Corp has navigated the turbulence and to be candid significantly very significantly increased profitability. We now for three months ago. The first quarter was particularly robust and so on him.

I'm pleased to report that our second quarter results were even more robust and this burgeoning is a tribute to the efforts and the commitment and the professionalism of all of our employees and to the enduring value of the company's culture created by Rupert Murdoch.

In fact, the second quarter of fiscal year 2021 was the most profitable quarter since the news school was launched more than seven years ago.

And there were other significant records established we have the largest profit for Dow Jones and since the acquisition of the company in December 2007, while we reported a 77% right and EBITDA and subscription video services were at book, So screening customers hits and historic high.

And we also benefited from lower costs.

Digital and real estate services move the accounted for approximately 80% of that segment's EBITDA growth.

And the history was made and when the New York Post reported a profit for the quarter ending for the year to date.

And is the first profit in modern times. After the released for what was a chronic lossmaking master it sounded NIH and other one by Alexander Hamilton.

In short digital real estate services book publishing and Dow Jones, all performed powerful and Q2 collectively generating segment EBITDA growth of close to 40%. The continuing expansion highlights of profound potential of the company the increased profits and generate value for our shareholders.

And to the future.

These resilient results of founded on our long term strategic shift and the company's assets, the chairman Digitization and a relentless discipline on costs.

We were adamant that we would not be victims of digital dystopia, whether we would contribute the fashionable for fuel future for content creators and we are seeing the results of that result it.

It is fair to say the regulators globally have joined the digital docs.

During the second quarter every segment and New school shows marked of operating improvements and contributed meaningfully to our profitability. We continue to see increased cooperation across the company with valuable digital lessons and inside of that each business rigorously applied for the benefit of all and to the benefit of shareholders.

While overall revenues I talked about $2 4 billion declined three 3% year on year that was fundamentally due to the sale of news America marketing and 2020.

On an adjusted basis and more genuine like for like comparison revenues rose, 2%. Despite the pernicious consequences of COVID-19.

Segment EBITDA for the quarter.

Was the $497 million the highest of any quarter since our re and combination in 2013 year over year that represents profitability growth of four 8%, while our free cash flow available to news Corp for the half rose by $373 million, Okay and day make is indeed.

Of the stress test and news Corp is surely passing that test.

And the digital real estate services segment news revenue growth was 28% and that kind of the spot restrictions in certain states on inspections, and thus trials having.

Having been and all of the support of the acquisition of move it is worth noting that we believe the net cost of this company, including the substantial settlement. We ultimately received for the Zillow get out trade secret lawsuit against them is the only a fraction of its current value net net we probably considerably less than $1 billion for moving 2014, we built.

It is worth of vast LIBOR today, and how much will it be worthy and five years out of the digitization of styles and the world's largest property market continues on pace.

At the time of our acquisition of real Dotcom was describing the type of platform with modest profitability and fewer of the 30 million monthly users there were sort of kind.

Kind of thinking about the acquisition, but we were absolutely clear that our media platforms and growing digital expertise plus our experience with out of area of Australia, which will enable us to transform the company.

And the first half of this fiscal year Reorders contributed more to our profit growth and the bridge.

And Bacon that is already in Australia sort of Paramount.

Just real true, whereas now and how much of the Haynesville well I will let you do the math to help you do that math of few specifics real.

Total traffic is now outgrowing zillow for non gene of the past 21 months, according to comscore, including the loss of 11 months and Iraq.

According to our internal metrics average unique monthly users and the second quarter was 37% higher than the prior year and we reached each month on average 80 million people.

Just to give you a sense of the size scale and loyalty. We had 8.7 total billion page views in the.

Second quarter more than one page for every person on our planet and that number does not include photo galleries of houses multiply the number of visitors for the images and those galleries and you get a sense of the scale of the intense interaction for our users traffic has continued to grow and since the quarters and with the unique users reaching a record.

$94 million for the month of January.

During Q2.

The expanded and the retro market through its acquisition of mobile and online property management platform that focuses on do it yourself landlords and tenants. This is significant given the fact that DIY landlords other than <unk>.

<unk> about three quarters of rentals and the U S and the rental market. According to the U S Census Bureau data is a $500 billion per year of dollars per year of business. So the addressable market is appreciable and depreciate it all.

Also in Q2, realtor Dot com launched and advertising partnership with rocket mortgage while continuing to build and even more seamless process for consumers wishing to qualify for mortgages to purchase.

In January real Terra announced the partnership with Qualia to provide simplified digital home closings, allowing for greater online collaboration between the items and their clients.

Let us be very clear buying of Hermes is by far the largest investment that the most families with Mike and the purchase of around debt acquisition, whether it be security of the mortgage or starting with electricity of broadband provider unnecessary and valuable adjacencies the hub.

Other purchase is at the very center of the cluster of Commerce and real twos are at the very center of that purchase.

From a macro perspective the overall.

Overall housing market in the U S. Not only has proven to be resilient during the time of crisis.

Demonstrate the tangible strength with many positive signs of activity, even with listing volume at historic levels.

With mortgage rates at the minimum and family of expanding their search for better and larger homes of new locations. There is reason to be optimistic about the trajectory of the sector.

Resilience and optimism also characterize the housing market in Australia, where the emergence from Lockdowns and the quarter has led to significant signs of recovery and Australia is still a growing economy and it will continue to benefit from its location and the world's fastest growing region. The deep ties with Azure, including India gave you a distinct advantage along.

And with its reliable legal procedures and stable coherent the courage and political system.

We believe it is still a country that is far from maximizing its potential and the growth of opportunities are pronounced.

And the second quarter <unk> acquired a controlling interest and a lot of our technologies, making it the majority of and out of the large and growing Indian digital real estate portal, including housing dot com and prop target.

As the patient by audience allow our runs in the fastest growing digital real estate business and India itself is one of the world's fastest growing economies. So the poor.

And the abilities and we.

We are on the Tracey Fellows leadership by many measures the world's largest digital property company and we are acutely focused on the countries that we believe have the largest digital property potentials.

Meanwhile, the columns had one of its most lucrative quarters with double digit growth across every category.

For many successful new releases of the backward bolster both revenue and profitability and as do the out of continued growth and digital.

Brian Murray and the team.

And a relatively early stage of the development of the audio books and the proliferation of audio devices.

On the increased the demand for our content on.

Im not sure of all investors have yet comprehended, the full value of that digital opportunity.

As for the revenue and titles and the successful catalog. There was didn't you see thats coming by Rachel Hollis the happy in a recoup book, Steve do you see the greatest secret bar on the frontier Follies, Redrum, and and the continuing strong demand for Magnolia table.

And two by July of the guidance and then and January there was Bridger too we have the series of non digital books, Julia Quinn, which our prosper and given the popularity of the part of the series for which I do series has recently been announced it all revenues and Hopper cars ascend the 23% in the quarter and segment.

EBITDA surged, 65% of the prior year.

Dow Jones also set records this quarter, including having its highest absolute EBITDA since news Corp acquired the company in light of 2007 with segment EBITDA of 43%, while the New York Times eight out of eight 1% increase.

Digital advertising spend of 29% the highest quarter and Dow Jones history, well of digital advertising and the New York times fell by 2%.

Clearly was challenged during the pandemic period, and which distribution was compromised, but overall advertising was down just 4% comparing dramatically with the New York times, where it slumped 19%.

And then our professional information business risk and compliance continues its record of extraordinary of expansion with either of the year revenue growth accelerating to 21% share.

Q2 marks risk and compliance print and second consecutive quarter of double digit revenue growth year over year.

Given the international attention with both the U S and China and pricing controls on companies and with the New administration in the U S and kind of tougher regulation, how Brian the other prospects for risk and compliance. If it went on the school works for a company that has not yet of clients suggest that you'd remedy that derivation.

The traffic and subscribers across Dow Jones properties of surging and Elba and the team are determined to make the most of the opportunity.

WSJ digital only subscriptions were up 28% and market watch also had a successful digital subscription launch in Q2, we have always insisted that our strategy is to upsell at Dow Jones, given non per a portfolio and so it's worth noting that more than 70% of those market watch subscribers charters are you.

Bundle that included the subscription for Barron's.

As for traffic and average monthly unique users across the Dow Jones digital network were up 48% and the quarter, reaching $127 million driven by 64% growth at both the Wall Street Journal and balance.

And subscription video services and our strategy to reshape the Fox total group as the next generation subscription business is clearly gaining traction with total closing price of subscriptions, increasing 12% and setting a year of record of either.

Three <unk> three 1 billion.

The <unk> now accounts for 40% of truck sales paying subscriber base with more than $1 3 million the streaming subscribers the actual growth rate and streaming subscribers with the other 90% driven by the strength of bench, which launched last may and the continued expansion of carrier in.

And the path there is been skepticism about whether we could transition from our reliance on traditional broadcast but those concerns of proven unfounded and folks tell us now of a company with a diverse portfolio and much momentum.

I'd like to repeat the EBITDA at the subscription video services segment for the quarter Rose, 77% from the same quarter last year.

For the first half segment EBITDA was 34% higher.

Gross has been crucial for the success.

But we are of leadership team and Fox sales I believe.

And we'd advise you of all on Makena and Patrick Delany and it's been absolutely focused on reviewing every aspect of the company's performance and diligently reducing costs, where appropriate guidance for us for.

So other and discipline has contributor to the transformation of the company and given us a powerful platform and much optionality for the future.

We have now secured long term rights to the three most popular sports and the country Aussie rules Rugby league and the cricket, which had external and success in the summer with the tour of the trial for the Indian too.

Record after record was set on the cricket pitch and on interest rate, where the traditional screens for a digital device and.

And Thats multi platform for you Jeff is now secured with both Australia, and the rules and rugby and <unk>.

On to our partners at Telstra over 3 million lifestyles customers will have the opportunity to transition to care over the coming months. So that they can watch the Ed James when they want to watch how they want to watch where they want to watch and on whatever device. They want the launch this is the monumental environment for Fox zone.

News Media segment also contributed meaningfully to use of course profitability this quarter with digital AD growth and the U K and at the.

And your progress.

We had indeed integrated the the new oil price was on a path towards profitability and it certainly achieve that goal and the second quarter Charles.

And now is to enjoy its long term profitability given the challenges in that sector.

Digital AD growth as opposed to of 64%.

Year over year for the quarter of digital advertising accounted for nearly 90% of the total page views of the <unk> were up 37% of.

And there was also a quarter and which the post reported a significant victory for all media for the freedom of the press by standing Resolute and principles against censorship of pros by tutor.

Ultimately towards the realize it is made and egregious mistakes and frankly reversed its decision.

Generalists and not laptops with laptops, Joe is the loss of geographers jealous about one day.

The most current awake to that propel and responsibilities.

And in Australia, we were Fortunately ahead of the curve and transitioning many of our local and regional print properties through digital platforms, which helped the weather the storm of Lockdown and Australia and leadership on the Michael Miller was disciplined and reducing costs and yet remain ambitious for our news platforms. During this time of transition for Germany.

And we're of record Brooks share real leadership, and the UK across our Boston like the assignment of the times.

The emerging digital businesses and at one of those are right and network, which reached nearly 5 million business.

And both Australia, and the UK, we are using our skills and video and audio to enhance our traditional platforms and that is clear of times radio which is an extension of the newspaper founded in London, and 70 and 95.

One of these calls I have often referenced the ongoing debate with Walt is loosely call. The digital I personally I've got that moniker of the euphemism.

The pivotal moment of the discussions and Australia with new regulations, and new terms of trade will be introduced but thats. The bank now extends across the globe. There is not a single series digital regulator of anywhere in the world who is not examining the opacity of algorithms the integrity of personal data the social value of professional journalism and the dysfunctional the July Mark.

And this has been an imperative for the new school for far more than a decade by gave evidence of the health of Lord and London on these various object in 2007.

And it has been and imperative because we truly care about the social value of journalism, and we believe that the social value is on commercial value.

And this enduring awesome total of three times and would not have been successful without the service and support of Rupert and Lachlan Murdoch and the news globally.

We expect that the new tech topography, and will benefit our company's financial for ships that is for certain and it.

And we'll also have a material impact and not only the countries and which we on price but in every country.

And the ambitious inspire young woman starting of digital news thoughts and Nigeria or in building of England for branding them, Alabama now has a far better.

A far better chance of sustainable success.

Finally, I want to thank all who have contributed to the singular success of news Corp. This historic quarter.

And that would be all our employees, who have contributed and each day encourages compassionate of worries on salute those individuals for what they have done and for what they continue to do for the company and for their communities.

While the macro environment remains unpredictable.

Goal is to ensure the new school is best positioned for long term success and that our value is absolutely appreciated by investors and now I introduce Susan producer for some wise words.

Thank you Robert.

Fiscal 2021, the second quarter total revenues for the $2 4 billion of decline of 3% versus the prior year. While total segment EBITDA was $497 million up 40% year over year, reflecting strong performances across all of our key reportable segments, driven by a combination of improved operating trends and costs for.

This is the highest quarterly segment EBITDA for the company was formed in 2000 and and finishing.

On an adjusted basis, which excludes the impact of acquisitions and divestitures and most notably the sale of news America marketing and the fourth quarter of fiscal 2020, as well as currency fluctuations and other items as disclosed in our release revenues rose, 2%, while total segment EBITDA grew 59%.

Net income for the quarter was $261 million compared to $103 million and the pie here for the course, and we reported diluted earnings per share of 39 cents as compared to 14 states and the prior year.

Adjusted EPS for 34 cents and of course, the compared with ice and since in the prior year.

Turning now to the operating segments digital real estate services segment revenue for $339 million and increase of 15% compared to the prior year, which is more than double the rate from the first quarter driven by another record quarterly performance for news on an adjusted basis revenues increased 11%.

Segment, EBITDA rose, 20% to $142 million or 19% on on adjusted basis, Despite higher spending which was in contrast for the first quarter.

Results also included $6 million of costs associated with the acquisition of the vial and the law of transaction at Rei.

Maybe just on Friday and results accounted for over 75% of segment revenue growth at approximately 80% of segment EBITDA growth this quarter.

News revenues accelerated to $155 million, the 28% year over year increase with real estate revenues rising 50% that's true.

Robert mentioned real total com traffic reached 80 million average monthly unique users, reflecting an increase of 37% year over year requires can just set the acceleration to 44%.

Monthly average lead flow you've remained very strong growing <unk> per cent.

Like the first quarter, we saw strong growth and the performance based massaro model, which accounted for approximately 30% of total move revenues and the quarter benefiting from the growth and lead volume and higher home prices and real estate transaction closes.

And we did we see an acceleration and the revenue growth if they're of Ferro model this quarter compared to the prior quarter and we all face the Grace and connection plus our traditional lead generation products, driven by strong customer demand and nicely improved pricing and higher sell through.

As a referral revenue the recognized upon transaction closing and only around 20% of the associated revenues from leads generated in this quarter are reflected in the results.

This provides a strong pipeline through the balance of the year, assuming continued favorable housing conditions.

These results are very encouraging and we remain focused on expanding our addressable market through the integration of key ancillary services, including a rocket mortgage partnership.

And these contributed $19 million to the segment EBITDA growth this quarter versus the prior year driven by the strong topline growth.

And as we have previously indicated we are increasing our investment levels and real true given the rapid performance and lead volume and further expansion into Adjacencies.

Revenue that our acreage for 6% of $184 million, reflecting of $12 million of 7% benefit from currency fluctuations.

And if it 19 restrictions eased during the quarter, including the removal of property inspection restrictions and belden.

Residential listings for the quarter rose, 10%, including 25% gross and net churn, Melbourne, and 13% growth and Sydney.

And you develop a project launches increased 12% on the prior year.

The ice results benefited from growth and residential get breath of juice, which was offset by declines in commercial and Asia. It also it's worth remembering that as a consequence of COVID-19 related not implemented price increase in July.

Please refer to our earnings release and the conference call following the call for more details.

Turning to subscription video services segment revenue for the quarter was $511 million up 2% versus the prior year and included a 33 million.

Millions of 7% positive impact from foreign currency fluctuations.

The adjusted revenues were down 5% and improvement on the Q1 decline of 7% benefiting from the motor writing broadcast subscription revenue declines and the expansion of OTT revenues.

Folks tell the closing tight subscriber base reached over $3.3 million as of the Sip of that she wanted up 12% year over year with OTT expanding July for $1 3 million paying subscribers close to double the prior use of number.

They are reaching 624000 and finished at 400 and sushi 1000 paying subscribers.

Kayo subscribers declined slightly quarter Ive of course at GTC, if analogy, but the decline was much less pronounced from last year as the business successfully manage the transition from winter to spring and fall of sporting codes underpinned by the exclusive exclusive cricket content.

Residential broadcast subscribers declined about 11% to approximately $1 8 million.

The relatively consistent with last quarter commercial subscribers declined 18% year I believe for 218000 and with the trends improving sequentially, having bottomed out at 86000 and the fourth quarter of fiscal 2020 at the consequence of the pandemic.

Broadcast Chad was somewhat elevated at 17, 5% versus 16% and the prior year impacted by our strategy to reduce promotional offers which resulted in the roll off of lower ought to subscribers.

And the financial benefit is reflected in the trade percent increasing opex.

Australia.

Segment, EBITDA increased 77% to $124 million and continuing cost transformation of the Fox till July to rightsize the cost base with the driver of profitability total cost declined approximately 10%, including the $35 million of lower sports programming rights and production costs, which was primarily driven by savings.

From renegotiated sports rights, partially offset by the $20 million negative impact relationship and the deferral of phase cost from the fourth quarter of fiscal 2020.

Expenses also benefited from lower its time and programming costs and lower overheads and.

Some of the cost benefit the timing of relationship, which where was the reverse later in the year I will touch on the Plaza.

Moving on to Dow Jones, Dow Jones delivered its highest revenue quarter since separation and 2013 and highest segment EBITDA quarter Since news Corp acquisition and 2007 Ret.

Revenues for the course of a $446 million up 4% compared to the pie and digital revenues accounted for 70% of total revenues this quarter up six percentage points from the prior year.

Circulation revenues rose, 8% due to growth and digital circulation revenues, partially offset by lower single copy and a maintenance and print volume still impacted by COVID-19.

And as Robert mentioned, Dow Jones, a guy and achieve record subscriptions in the course of with average subscription. So it's consumer products for the quarter exceeding 4 million of 18% from the prior year and all of that digital only subscriptions of $3 million up 29% and year over year.

Total Wall Street channel there were $3 2 million average subscription for the core of shop, nearly 19% from the prior year, the digital only subscriptions growing 28% to nearly $2 5 million.

Revenues from Dow Jones risk and compliance grew 21%, which was a faster growth rate for the past three courses by for all professional information business revenues rose 4%.

At the type of thing revenues, which accounted for 26% of of revenues. This quarter declined just for the center.

For $158 million, a marked improvement from the 17% decline last quarter as Robert mentioned, we had another record quarter for digital advertising for the 29% growth of digital accounting for 58% of advertising revenue for the second quarter, we saw growth in all categories, particularly in technology.

Print advertising revenues declined 29% year over year, which was an improvement from the 39% decline in the first quarter.

Dow Jones and segment EBITDA for the quarter rose, 43% to $109 million with margins expanding two five of 24% and up on my seven percentage points versus the prior year comp declined almost 5% this quarter due to lower print volumes and other discretionary savings.

And book publishing Harpercollins posted 23% revenue growth of $544 million and a 65% segment EBITDA rose to $104 million, marking the best quarterly performance in its history.

Revenue growth was strong across all cash agrees with double digit guidance Robert mentioned the debt of the published this quarter, which included strong performances from numerous sources, including Rachel Hollis Ronda than re drama and Joanna Gaines of David following among others.

Similar to what we saw in the past two quarters, we are continuing to benefit from a strong rebound in April with IV for all digital files up 15% year over year, a book sales increased 21% year over year with gains in all categories.

Downloadable audiobooks increased 10% year over year.

We've continued to see higher on lifestyles, and and particularly benefited from strong orders from Amazon and other E commerce platforms. During the holiday season, but perhaps more importantly, we are seeing very strong consumption levels likely benefiting from stay at home measures and of continuous flow of new content.

Revenues increased low double digits across the Barclays and notwithstanding I contributed 55% of sales this quarter down from 15, 8% last year juice of the larger mix of the front list titles.

Harper Collins, the Guy and demonstrated strong operating leverage despite of six to eight the set increasing costs in part due to royalties and higher production expenses related to the successful topline performance margins improved by almost five percentage points.

Turning to news media. Despite ongoing challenges, we remained focused on right sizing the cost base and moving towards digital and helped by a moderation in advertising revenue trends.

It needs for the course of over $573 million down 29% versus the prior year of which the impacts from the divestment of news America marketing accounted for the majority of the decline.

On an adjusted basis, which excludes the impact from the divestment of man and unruly and the other items mentioned in our release revenues declined 9%, which is an improvement from the 60% decline for the first quarter.

The decline also reflects the $34 million of 4% negative impact from the equation will transition to digital obsession regional and community newspapers in Australia.

Circulation and subscription revenues rose, 5% as of now.

$9 million for 4% benefit from currency fluctuations strong digital paid subscriber growth and cover price increases offset lower news sales related to COVID-19.

I for all of the E trade and seen local currency, what that should replace the UK and Australia compared to the first quarter.

Circulation revenues accounted for 45% of total segment revenues.

And was slightly higher and advertising this quarter and.

The mix of revenue has become more recurring and predictable.

Advertising revenue fell 200, and sushi $1 billion of 48% on a reported basis of which of $191 million of 40% was from the sale of at least that the marketing and $28 million of 6% with relation to the negative impact from the clash of old transition to digital assertion regional and community torsion said Australia.

The remainder of the decline was true to the overall weakness and the print advertising market on the.

The positive Tonight, the New York price continued to outperform with advertising revenues up 23% and as Robert mentioned digital advertising up 64%.

Digital revenues at the New York High-stick stage of 50% of title revenues this quarter and over all of the New York Post had its highest digital revenue since 2010 of Shane.

Segment EBITDA for the course of the $66 million flat with the prior year. Despite the 22 million total a onetime benefit and the prior year related to a special point of session warranty related claims and the U K and the absence of the modest contribution from news America marketing.

Adjusted segment EBITDA increased 5%, which included the $5 million positive contribution from the New York Post.

I would now like to talk about some things and the upcoming quarter and the second half over all we expect to see some slowdown and the second half results and forecasting remaining particularly challenging given the ongoing global climate change the pandemic.

And digital real estate services as already I know, you said national residential listings and Australia for January and was flat. The prior year results will reflect a small loss related to the consolidation of the Lora technologies and the second half. Please refer to <unk> press release and earnings call for more details and.

News, we remain encouraged by the traffic and lead volume trends, which are expected to drive higher revenues and the second half. Despite the historically light listing volumes across the industry. We expect these higher revenue used to fund at least $40 million of additional reinvestments and the second half compared to the prior year in areas, such as brand marketing and product development and.

It looks like the some gaining market share and expanding into adjacencies.

And subscription video services, we of St broadcast churn continue to increased use of the ongoing focus on opex and seasonal trends with the end of each of sports how of the kayak has remained resilient and OTT subscriber growth with IP and should remain strong.

We expect EBITDA results for the second half to be more challenged in parts of the lapping of the prior year cost savings as a reminder, fiscal 2024th quarter results included a $70 million cost benefit due to the deferral of sports rights and production costs relationships of Covid non chain.

We now expect for your overall cost declines given the better than expected revenue performance to be more modest than we had initially expected with a net reduction of less than 100 million of straight dollars. This includes approximately 80 million of Australian dollars of higher sports cost for the second half of fiscal 2021, particularly in the fourth quarter compared to the prior E P.

For it.

At Dow Jones overall revenue trends remain favorable compared to the prior year, including strong digital advertising growth as.

And as we look to the rest of the day, we continue to expect to reinvest and the business as we fight the self driving revenue growth through its digital assets and expect second half expenses second half expenses to increase modestly compared to the prior year. In addition, third quarter will face a more difficult digital advertising price comparison.

And book publishing overall industry trends remain favorable and we continue to monitor closely the sustainability of recent consumer spending patterns, such as the increasing free time for consumers to rate and the increase in the average number of books purchased the.

The second half comparable will be tougher, particularly in the fourth quarter, given the material outperformance last year and as we lap some of the initial benefits at the outset of COVID-19.

At news media at the ongoing National Lockdown, and the U K and domestic travel restrictions and Australia continue to put pressure on print circulation, especially weak tight and <unk> sales and are also creating increased on Thursday on advertising spend across the next categories cost declines and the second half are expected to moderate from the first half rate as we lap some.

Private 19 exciting initiatives as well as the divestment of news America marketing and the closure of digital transition of some of that news patency of Australia, and the fourth quarter.

All of the segment for the second half, we expect at least $50 million increase in cost driven by a combination of higher equity comp related to the stock price performance and the absence of the guidance reductions across the senior executive team and the prior year and response to COVID-19, as well as additional costs related to the implementation of the global shared services initiatives with that.

Let me hand, it over to the operator for Q&A.

Thank you.

And if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if youre using a speakerphone. Please make sure. Your mute function is turned off to the lawyers could not reach our equipment if you for.

Part of your question has been answered you may remove yourself by pressing star two.

As a reminder, if you would like to ask a question. Please signal by pressing star one on your telephone keypad.

And we'll go ahead and take our first question from Alexia <unk> from Jpmorgan. Please go ahead.

Hi, This is the only pan on for Alexia. Thanks for taking on the console digital advertising of Dow Jones continues to outperform some of your peers and I'm wondering if there's any sort of the Colorado and Gabe.

Why do you think of doing relatively quiet well on the right.

The coal you know or the advertising products driving the outperformance and.

And then from Bob.

Part of it resolved and the cycling.

And can you just feet on the screen and caught up what indicators of trends are you.

And you're looking for the.

Determined and next steps for the outlook. Thank you.

Well first of all of the Earth.

And so we have a great team of Dow Jones and led by how much of the material just students come out of the Chief revenue Officer has.

Done a sterling job of developing our digital expertise and thats across WSJ don't call market share balance and beyond.

And the the increases being across categories, but also in new categories and custom advertising and.

And it's clear that if you want just the safe space, but the space that is the brand enhancing the on an audience. That's the most influential in the world and Dare I say, it rod well healed and Dow Jones has comparative advantages just of one broader point to bear in mind and with the even though the death of the core.

A vast audience and the U S. For example will be particularly valuable on Johns and a significant component of the net when you add together the unique cross out U S businesses and this is T. J P and yet as you can tell from the number but we have a close to 350 million monthly uniques. So that's in the advertising audience. The two.

And for Dow Jones, but for all of our properties and.

Just to touch a little bit of comments, we also of the <unk>.

Josh on the late for the sales team at <unk> and for being very focused over the past 18 months on improving our AD tech capabilities, and Upskilling and the sales force and improving yield management, which we now believe we're starting to see the benefit in addition to obviously the audience growth.

And just in relation to the second question for Fox.

And when we think about the trends that we're looking at home and the next steps for the assets were clearly OTT will be and ongoing focus for us and that business.

As well as the stability and broadcast of the tape cyclists on the management of the base of subscribers and it will cost and they are clearly focused on cost as well and they've done a tremendous job in the first half for really the last 10 months since Covid started and taking out some of the underlying cost of the business there and the renegotiation of sports and entertainment.

Time and contracts, but.

But we'll be particularly looking forward to the growth I think the.

T T properties.

And the two revenue.

The net Susan's comments, let's consider other forms of sterile narrative is China and the two questions where to be honest of couple of quarters ago, where do we with the need to put extra capital and the Fox style and then were asked where the some spec wanted the bahar speculation that the speculation and.

And the truth is that the successful development of the business has given us real options.

And our immediate task and the team's task is to keep driving the business the keeps driving.

Obviously made a fairly successful migration to streaming up 90% year on year and we obviously have.

We've kind of I Wouldnt binge and we obviously have more work ahead, but the path for the future of certainly pays the possibility.

Thanks.

Hello.

The low Alley, and we'll take our next question. Please.

You bet, we will go ahead and hear from Kane Hannan from Goldman Sachs. Please go ahead.

Good morning, guys and congratulations on the results just two for me Firstly, just the move revenue outlook and you're talking about 40 million Bucks for the incremental investments and seeing strong traffic growth you won't have the I think concessions and the fourth quarter and do you think it's possible that that revenue growth continues to accelerate in the second half or just how should we think about the revenue trends and then <unk>.

Lee just on the global shared services initiative I think it was the $100 million bucket you were talking about at the full year result, just given some of these increasing the investment you were talking to and the second half just interested how we should be thinking about that program in FY 'twenty, two and whether there's any change to those sorts of targets just.

Yeah.

Thanks, Kai and I'll come on Mike.

Take for those questions and real quick can add all of them and supplement does he will so just in relation to the sustainability of the needs right. I mean, we remain very confident in the course of the business and are encouraged by the traffic and the lead volume since we talked about an hour for prepared remarks, notwithstanding the industry listing volumes remain at historically low levels.

We do expect with the revenue growth the cost will increase and I think the interesting thing Tonight. When we think about the results for this quarter versus for the fifth courthouse and actually the cost increase this quarter and so it was really the top line revenue crossed it was dropping down to sort of offline.

So we do think that the revenue growth will continue and we didn't want to scale up the cost and the reinvestment areas that I mentioned and marketing and product development.

And just in relation to shared services yeah.

Yeah, we did quite a $100 million for financial year 'twenty, two we're still holding that number at this stage notwithstanding the conflict with some across the business. We do still think that there are enormous opportunities, but it will require obviously a lot of work and reconfiguration of our system sales.

The savings, but at this stage of the guidance is still $100 million will fund actually attention too.

And just to supplement the Susan sources, particularly on <unk>.

And clearly we have to be somewhat cautious.

And the second half of the year simply because of the complications of Covid.

And the lack of visibility of for many of our businesses and and.

And you can see that reflected in the.

As of today with Sydney, taking nothing for granted the spud the excellence of the Q2 results.

The.

The move.

And <unk>.

Positive at least in January of the David and the team and real too.

And with January normally the slower months unique users rose, 37% to $94 million and the lead volume remained robust.

Indicators, but we are taking nothing for granted.

Thanks Scott.

Thank you Kim.

We'll take our next question please.

Yes next we'll hear from and.

Joe Rykowski from Credit Suisse. Please go ahead.

Okay.

Hi, Robert Hi, Susan.

Got a couple of firstly within news media, obviously significant cost reductions and the quarter just interested and whether you can make any comments about the extent to which the ice cost reductions of feminine.

You seem to kind of the print circulation might be challenged and future quarters saw that and I always thought of just results in lower operating costs, which Mike might come back down the track.

And and whether you are in fact say for the opportunities for cost reductions, we didnt within that division.

And then second question news around.

And yes.

The following the announcement of the Telstra Lafosse uses and transitioning to Cai.

Do you have a sense for how many of the how many of those.

So I guess for Emil and uses do you expect we will transition and do you have any projections you're willing to share around how many of the dollars you would expect to hold onto after that promotional periods of fiber.

And you and maybe if I start with your first question just in relation to news media.

Obviously, there's been a lot of cost with the state Dot and Youll Raj and some of that is obviously volume related and some of that will scale up and down depending on how this business is tried and lot of COVID-19, but there are all sorts of content cost reductions and the change the big working on on with had significant reduction in head count the came through and the backend of last day.

He then you've obviously flowing through here, but.

But we do have a loaded costs that have come out in the idea of a hit spaces Wow now some of that naturally will come back even as the businesses open up but we would also the heights of thought that might be permanent and as we change the way for the book going forward.

Also hiding the back end of last year and significant reductions in marketing expenditure within the news media, we would expect to see some of that start to come back in but not necessarily at the levels of them at the same. So I think the balance of thought because we went forward and I do think actually that they're off to permanent cost reduction opportunities of the business in the working on within that segment on a lot of that.

And to do with the restructuring of the business and the reconfiguration and the true.

And so we're actively working on that.

And as for the transition from a low cost of carry of it isn't the obviously the extraordinary opportunity for folks to Atlanta.

And as it tells true will be doing everything.

And to encourage their users to make that migration director of around a total of $3 2 million Lofthouse members of the for those who are interested and Aussie rules of rugby.

Any of the many sports on kind of this is an extraordinary opportunity to be able to watch.

World class of streaming.

[noise] preparation of at work and.

The.

Those who have used guy out of out of experienced.

And its ability to of.

Not only showed one and done but many guidance simultaneously.

And that experience is definitely compelling and serve.

We believe that.

Very large number of lives pass subscribers will make the migration, but it's so early in the process of tomorrow.

And we don't want to put numbers out there, but with the imminent start of the winter sports seasons, and Australia, I think you'll see the metrics and in coming months and we'll be able to update you next quarter and.

Thank you and Joe the only other thing to add to that would be that as we think about the sourcing opportunity that folks tell about half of it will scale clearly more from the one given the introduction and also so well three weeks that subscribed the numbers to pick up we would expect the actual impact on revenue and EBITDA to be more back ended from you on them.

Got it that's very useful and maybe just a very quick follow up do you know if there is not tied to the lap at the moment between the existing Cagliari sub space and and the law is passed uses.

But it's relatively small.

Okay.

Well, Brian Thank you and as the Senate.

Thank you and Joe Alley, and we'll take our next question. Please.

Thank you we will now hear from Craig Huber from Huber Research partners. Please go ahead.

Thank you Susan and wanted to hear a little bit further about the costs within your subscription video services and then maybe.

And part of the year, because you think of for the next fiscal year anything out of the ordinary there you want to call. It sort of you havent already touched on.

I guess, the probably the easiest way to maybe frame the cost and the second half and so I expect them to be broadly in line with the cost for the first half of which is net of any of the movements that we've obviously talked about with the deferral of the sports rights.

With the remainder.

Kind of at the 48 hospital of sold of approximately $156 million, Australia and dollars of additional costs here on the due to the deferral for by sports cough. So I think you know the the underlying conflict the as I've said, the Fox they'll take Mcdonald's and starting to pay dividends, but clearly with all of these top of lots of sports rights and the in the current need but that's the frame I would say broadly speaking.

And in line with the first half.

And then my follow on question real quickly ask if you think out for the next fiscal year is there any large sports programming contracts up for renewal of the might of a significant chunk of should take into account on our models.

The next fiscal year, no I always gosh, we've obviously just executed the.

The the renewals at the AFL and NRL, we had those to fill it up now 'twenty 'twenty, four 'twenty and 'twenty seven and we're not.

Expecting and ex financially significant step ups for the overall basis on sports.

And.

Great. Thank you.

Thank you Greg Alley, and we'll take our next question. Please.

It appears we have no further question and that does conclude our question and answer session for today I would now like to turn it over to our speakers for any additional or closing remarks.

Well. Thank you very much the alley and thank you all for participating and we look forward to talking to you soon and have a great day and stay safe take.

Take care.

And with that that does conclude today's call. Thank you for your participation you may now disconnect.