Q3 2021 News Corp Earnings Call
While us in Australia, the deals will obviously improve the results at our newspapers, but also enable us to hire Jos to improve the coverage and underserved regions and communities.
Finally, before turning to the quarter's results I would like to highlight the successful completion of a very local bond offering which was multiple times oversubscribed acts and attractive coupon and thus the resounding vote of confidence and the Companys strategy and its prospects.
As for the third quarter and fiscal year 2021, I am pleased to report that we achieved nearly $300 million in profit up 23% year over year. We have now had three successive quarters of double digit profit increases and we strongly believe these rather positive results reflect an increase in our core profitability.
Revenues in the third quarter exceeded $2 3 billion.
Representing a 3% increase from the prior year.
Turning first to the resolutely robust digital real estate services segment moves revenue growth was 37% exceeding Q2's, 28% growth move and realtor dot coms and value to news Corp to the real estate industry and consumer is becoming more obvious with each passing quarter.
Overall digital real estate services revenues were up 34% year over year and.
And segment EBITDA surged, 58%.
The other dot com and traffic growth has outpaced that of Zillow for 14 consecutive months through March and the significant growth disparity between the two has been widening markedly. According to Comscore in March real to us traffic growth outpaced zillow and trulia by nearly 30 percentage points.
And why this extraordinary growth at realtor, because we are focused on atkins humans, whether that'd be a family buying or selling a house or the agents handling that important transaction. We are now flipping houses we are not competing with our clients. We are not building up a stock of bricks and mortar inventory, we're not worrying over the wall paper operating our defenses and <unk>.
Up on Stockholm, and we are absolutely digital and devoted to our consumers.
This reputation and functional advantages full real till it comes at a moment of genuine momentum for the U S real estate market, our internal metrics show that average monthly unique users and the quarter were 44% higher than the prior year and reached 108 million uniques for the month of March alone.
Our burgeoning of 60% versus the prior year.
Not only Israel to dotcom setting home buyers and sellers, we are serving renters and landlords as well we expanded our rentals offering by acquiring ethyl where revenue growth has exceeded initial expectations and we are excited about the opportunity that lies ahead and this lucrative market segment.
And Australia, the real estate market is thriving, particularly in Sydney and Melbourne are AIA group, the clear leader and that country's digital real estate sector. So our revenues increased by 52% during.
During the quarter, our AI announced that it proposed to acquire 100% of the shares and mortgage choice limited the proposed acquisition aligns with <unk> financial services strategy and strategy by leveraging the group's digital expertise.
Weighted properties.
Motivated property buyers and and daughter and sites across a larger network.
At Dow Jones revenues rose, 6% year over year and segment EBITDA lift and impressive 61%.
Overall advertising, which was slightly down in Q2 moved into positive to rein in Q3 with digital advertising, 30% higher and the quarter almost double the growth rate and the New York Times Digital now represents 61% of all advertising compared to our ratio of 48% and the prior year digital only subs at Dow Jones, and the Wall Street Journal.
Surged, 29% and Dow Jones digital only net adds in the quarter exceeded those and that New York times for its news subscriptions.
Market watch is achieving record high revenues and he's now are benefiting from multiple revenue streams with the successful launch of its subscription offering in October.
And compliance reported growth of 24% and the quarter, marking 23 consecutive quarters of double digit expansion.
This strength underscores rnc's value as a global leader in data and intelligence, including and anti money laundering, anti corruption and commercial risk assessment.
Integration of the newly acquired Houghton Mifflin Harcourt books, and media segment, we should close and Q4.
This acquisition will greatly expand to Harper Collins backwards with an additional 7000 titles, including such monumental works of the Lord of the Rings trilogy animal farm and 1994 and.
Beloved children's books like curious George the polar express digital prints and many many more and.
We look forward with eager anticipation two amazons production of J.
<unk> works do in coming years as with HMH, We will have acquired the U S rides to that extraordinary collection and will now earn the global English language rights as token himself roads. The greatest adventure is what lies ahead today and tomorrow and I get to be said.
Infrastructure video services strategy to rapidly expand screaming has been transformed transformational Folkstone express growth of Cairo and bench to get with foxtail now so the number of paying OTT subscribed to switch approximately 1.6 billion as at the end of March.
Represents a doubling of streaming subscribers over the past year alone and extraordinary achievements and Kojo and functional closing subscribers grew to a record of over $3.5 million up 21% year over year, driving a significant increase and profitability.
Tired sports has helped Fox, Mike Fox toe, the pre eminent time of sports and Australia with a record 2.2 million sports subscribers.
Of these chaos accounted for 851000 paying subscribers as at March 31, more than double the prior year, where it was 400 night sales.
In recent days Taio exceeded 1 million total subscribers with paying subscribers expected to reach that milestone imminently and <unk>.
Strong summer of cricket and the start of the dominant winter sports talk tyo generate more momentum. This was supported by a recent agreement with Telstra, which is seen kayo replace tells to live past.
And the AFL live App and R. L official and making Coyote exclusive streaming home of the extremely popular Aussie rules and rugby league competitions not.
Not yet one year old the binge entertainment streaming service reached 516000 paying subscribers up nearly 20% on the second quarter.
<unk> has established consistent weakness.
Subscriber growth underpinned by the growing awareness of the binge brand the popularity of it shows such as the flight attendant, the walking dead and sex and I'd as Justice League and it's deserved and reputation for user friendly tech savvy access to the world's best content.
Boxtel resurgence during the pandemic, coupled with and continuing value of its broadcast product the rapid growth of Kyle and binge and a relentless focus on cost transformation have delivered a much enhanced financial performance that certainly gives us flexibility and optionality and.
And the news media segment revenues declined somewhat as expected. The difference was entirely attributable to the style of news America marketing and the restructuring of regional and community titles and Australia, most of which became digital and the problems in the UK circulation revenues increased while and your post continue.
Revenue growth driven by strong expansion and digital advertising.
Finally, I want to express my and during gratitude for the thousands of people, who work and new school around the world for that creativity that commitment and their collaborative spirit, which has been a guiding force as we navigate through the uncharted turbulent waters of dependent.
The past 12 months have seen record profit and many of our businesses are strong reinforcement of our digital imperative and particularly potent performances by the three sectors that we had targeted for expedited growth.
It is clear that our investors are increasingly pricing that strategy and profiting from that strategy and now.
Now I turn decision Panocha woods and financial Wisdom.
Robert.
Physical 2021, and say course potential revenue $2.3 billion and increase of 3% versus the pioneer well taste and was taking the EBITDA with $298 million up 23% and year Ivy, reflecting strong performances across a key segment.
All three cool pillows stature and digital real estate services and book publishing collectively Chris segment, EBITDA by 55 and.
Yeah.
And and adjusted basis, which excludes the impact from acquisitions and divestitures nice nice and play the same with news American marketing and the fourth quarter and fiscal 2020, as well as currency fluctuations and how 'bout items place and hourly revenue.
Three 4% will taste and segment EBITDA grew 24%.
Net income for the quarter with $96 million compared to a net loss of $1 billion and the price, which reflects the absence of and non cashing payment charges related to Pakistan and needs American marketing and the price period.
For the quarter, we reported earnings per share fishing as compared to a net loss to share with one until the 24 last year.
And now adjusted EPS with nine cents and the quarter compared to tree and the price.
Turning now to the operating taken.
Digital real estate services segment revenue for $351 million and increase of 34 and compared to the prior year, which is more than double the growth rate lethal in the second quarter.
And the performance was treated by another record quarterly performance technique together with improvements that and.
And as well as the Alara consolidation and positive impact from foreign exchange fluctuation on and adjusted basis revenues increased 22%.
Segment, EBITDA raise 58% to $117 million from 52% on and adjusted thanks.
Off the quarterly growth rate and nearly four <unk>.
These revenues accelerate until $162 million, a 37% increase here IPF with real estate revenues, writing, 43%. These.
And these contributed $36 million or 84% at the segment EBITDA grades this quarter and the highest contribution to growth to the segments of the fiscal year.
We also dot coms traffic increased to 98 million average and <unk> and see the third quarter, reflecting a year I think and increase of 44% and.
And I should lean March real since unique pieces, and 100 million fifth time, reaching either 108 million and Keith is up to 60% compared to the prior year and I.
Monthly average lead volume remain very strong growth, 840%, which was higher than the second quarter right. Despite continued infantry constraints across the industry.
We sold very strong growth across the traditional lead generation and referral businesses and the third quarter with a notable acceleration from the second quarter right and the growth of connection and stuff.
Traditionally generation products, which benefited from higher traffic and late volume higher attention right and improved crossing.
These results and the scope success with our strategy of choice and flexibility.
Revenues from the referral business continue to grow strongly representing 25 per cent of total move revenues lower than the first half mainly to to the acceleration and the traditional lead generation business, coupled with the seasonality impact.
And for all the drivers behind the performance at the referral model remained similar to the price quarter with continued strong transaction volume higher home pricing and stapled to hire referral fees.
As we mentioned last quarter that we expect to continue reinvesting, primarily and marketing and product development balancing continued improvement profit ability with revenue growth.
We are pleased to say strong growth across space and pertained accelerates the pace of innovation and new products as we expand into Adjacencies.
Turning to Rei group revenue that Rei, right, 32% to $189 million, reflecting a $28 million or 19% positive impact from currency fluctuations and a 7 million.
From the acquisition of Alara.
Australia and national residential listings for the quarter right, 8% with Melvin up fishing descent, and Sydney up 5% if growth rates and proving throughout the quarter.
You develop a project launches increased by 14% compared to the prior year.
<unk> results also benefited from and increasing residential tech breath and Keith.
Despite the absence of a price increase is his school as part of Rei's COVID-19 support initiatives.
Like real tough riaa's benefiting from record traffic with real estate Dot com today, you heating and all time high of 137 million monthly basis and match up 60% year over year and by our inquiries are also and record highs. Please.
Please refer to <unk> release, and they conference call. Following this call from our days home.
Thanks, and the subscription PDI services segment revenue for the quarter with $523 million up 13% versus the prior year and included a $79 million or 17% positive impact from foreign currency fluctuations adjusted revenues were down 4% continuing the improving trend through the physical E. As the expansion of.
OTT revenues, partially offset the declines and broadcast subscription revenue.
Visual closing paid subscribers across of October at the three 5 million as of March 31 of 21% versus the prior year as the team focused on maintaining it's premium broadcast customers, while the kom been streaming services delivered subscriber growth and scale.
And the comparison versus the price was helped by the absence of the initial impact of COVID-19 at the launch of business and the fourth.
Of course.
Total paying OTT subscribe has expanded to nearly 1.6 million paying subscribers of 120 per cent compared to the prior year the care, reaching 851000 and pinch at 516000 pain subscribers, including Triallist Kao and binge reach 914670 9000 subscribers from and thank you.
Flea, which is indicative of the strong and cheap and you just to each other products you need.
And set.
My eyes gross has been enhanced by the recent.
Agreement with Telstra to replace Telstra is life, possibly accelerating the penetration and adoption of the product.
While the revenue impact from the addition of formalized path customers will be minimally new one at the agreement juice of the pricing promotion. We see this partnership is a unique opportunity and window to introduce kayak to a new audience.
Residential forecast subscribe has declined 12% from the price toy for 1.7 million and commercial subscribers also declined 12% to 235000. However, the trend increase sequentially as COVID-19 restrictions continue to AIDS, particularly and pubs and clubs, albeit the accommodation sector remains challenge.
Broadcast chair and was elevated at 21% versus $17, 5% and the price as the team continued to balance Chen with revenue optimization as a result of to continue to rise both year Ivy It sequentially hotly mitigating forecast subscribed per volume declines broadcast to raise two per cent toy for AC Australia.
Of 62 U S dollars.
Segment, EBITDA and proof, 34% to $91 million and was up 13% on and trusted basis. The improvement was driven by $22 million of lower sports programming and production cough as well as lower transmission marketing and employee cough.
Finally on Fox tell by refinance their existing $650 million, Australia revolving credit and working capital facilities and extended the maturity day out icy months to May 2024 at a slot crossing tree.
Moving on to touch and Dow Jones delivered another outstanding quarter with your IP gross to both revenue and seek segment EBITDA acceleration versus the second quarter and the first half price revenue for the quarter with $421 million up 6% compared to the prior year with digital revenues accounting for 74% of total revenues this quarter up <unk>.
Six percentage points from the prior year.
Circulation revenues again raise 8% juice of the growth and digital circulation revenues, partially offset by low a single copy and amenity print volume, which is still impacted by COVID-19 restriction.
Dow Jones continue to price records subscriptions with nearly four 3 million average subscriptions to its consumer products and the quarter up 19% from the prior year off that nearly three $3 million with digital only subscriptions, reflecting 238000 and sequential net ads and 29% year over year growth.
And the Wall Street Journal they were approximately three 4 million average subscriptions for the quarter up 21% from the prior year with digital only subscriptions growing 29% too I have a $2.6 million.
Revenues from Dow Jones risk and compliance grew 24% improving from the queue to rise and was the fastest gross since the first quarter of fiscal 2020. However, all professional information business revenues rose, 9% within professional information business risk and compliance with the largest source of revenue this quarter for the first time on record and is now approaching.
$200 million in revenue for the full year compared to approximately $160 million and fiscal 2020.
Advertising revenues, which accounted for 20% of revenue is cause I agree 1% to $85 million a marked improvement from the 4% decline last quarter and was the first gross since the first quarter and fiscal 2020 as Robert mentioned digital advertising revenues had the fastest gross and a decade up 30% and accounting for 61% of Azotize.
Revenue for the third quarter it.
It is worth noting that this level of gross came to spy a tough price comparison, if I play the 20%, which at the time was a record quarterly performance.
Encouragingly, the gross with the Guy and broad based with no simple gains and the financial services category, we sold gross in both volume and yield, particularly and direct display.
And advertising revenues declined 25 per cent year, Ivy, which was an improvement from the 29% decline and the second quarter.
Gotcha and segment EBITDA for the quarter was 61% to $82 million with margin expanding close to seven percentage points. Since it's the prior year total cost declined 2% this quarter, which was better than we had expected mostly juice lower print volumes and other discretionary savings, partially offset by higher compensation call.
And book Publishing Harper Collins posted 19% revenue gross to $490 million and 45 per cent segment, EBITDA price to $80 million, reflecting and not a very strong quarter and continues to benefit from the industrywide increasing consumption and.
Like the second quarter revenue growth was again broad based and was led by the general tried children's UK and foreign language categories. The backlist was the key driver this quarter accounting for 62% of files slipped by very strong sales from the Richardson theories quite Julia Quinn.
Similar to previous courses, we are continuing to benefit from a strong rebounding a book, it's files up 38% year over year and gains and all categories. While downloadable audio books increased 42% year over year overall digital sales were up 38%.
Harper Collins, a guy and demonstrated strong operating leverage despite a 15% increase and total cost and talk to you too royalties and high production expenses related to the successful time performance margins improve by three percentage points.
Turning to news media, we continue to remain focused on right sizing the cough space and moving towards digital within the segment revenues for the quarter with $550 million down 25 per cent versus the prior year of which the impact from the divestment of news American marketing accounted for the majority of the decline on and adjusted basis revenues decline.
And only 7%, which is an improvement from the 9% decline last quarter.
Decline also reflects the $28 million, a 4% negative impact from the closure will transition to teach it'll obsession regional and community news papers in Australia.
Circulation and subscription revenues gross 13% driven by $26 million or 10% benefit from currency fluctuations stroke digital paid subscriber growth and cup of price increases, possibly offset lower news 10 sales relates to COVID-19.
Advertising revenue decreased 215 million or 50% compared to the price, reflecting a 199 million forty-seventh to sit and negative impact from the targets to share of news America, marketing and a $23 million or 5% negative impact related to the closure will transition to digital of sit and regional and community news type and.
And Australia.
The remainder of the movement was driven by favorable foreign exchange, partly offset by the continued weakness and the print advertising market exacerbated by COVID-19.
Advertising performance was mixed across the region with Australia, showing moderating declines compared to the second quarter rights, particularly driven by increased retail spending will be <unk> performance weekend, mostly compared to the second quarter impacted by another locked out which started at the end of 2020.
And the U S. The trends remains robust with the needle price posting 21% advertising revenue growth of which digital advertising groups, 32%.
Segment EBITDA for the quarter was $8 million compared to $24 million and the price E. G primarily to the absence that the contribution from news America marketing adjusted segment EBITDA increased by $5 million.
And I'll I'll just segment, the third quarter comfortable higher than we expected primarily driven by higher equity compensation due to the rising share price and the initial investment spending related to the implementation of alkylate bullshit services initiatives.
Oh and now like to talk about some themes for the upcoming quarter as nicely and the past cold forecasting remains challenge and giving me ongoing global COVID-19 pandemic.
Digital real estate services National residential listings in Australia, <unk>, we're up 98 per cent compared to the prior year, while the market try and that makes a strong these growth rates are exaggerated by the severe COVID-19 related declines experiencing April 2020. Please your first <unk>, Chris release and earnings call from more details.
At maybe if we remain very encouraged by overall trends and expect the revenue momentum to continue we continue to expect additional reinvestment that moving areas such as bread marketing and product development as we focus on guiding market share and expanding into adjacencies.
And subscription VDI services, we have seen broadcast chin trends moderate during April and we remain encouraged by strong OTT demand from Cairo and binge, we expect EBITDA results to be challenged chewing large parts of the lapping of the price cost savings.
As a reminder, the price fourth quarter results included 70 million U S dollars of lower sports programming Ryan.
Mainly due to the suspension of sporting events as a result of COVID-19, and pull the current fiscal fourth quarter, we expect to incur those rights, which will be impacted by the rising although I don't know if this is the U S dollar as well as some additional costs for further OTK investments.
At Dow Jones overall revenue trends remained favorable compared to the price includes strong digital advertising gross as mentioned last quarter, we expect to reinvest and the business as we focus on driving revenue growth towards digital assets and expect second half expenses to increase model sleep compared to the prior year.
And book publishing overall industry trends remained favorable but we continue to monitor closely the sustainability of recent consumer spending patterns such as the increase increased high for consumers to read and the increase in the average number per.
And we continue to expect performance to moderate and the fourth quarter and part due to the strong performance and the prior year, which benefited from increase consumer demand at the onset of COVID-19, Lockdowns and restrictions as well as the successful release of Magnolia table volume too.
And news media, we expect continued improvement and the fourth quarter as we let folks the impact from COVID-19, and the style of News America marketing you may of 2020 cost decline should moderate as we left COVID-19, and saving initiatives as well as the divestment of news American marketing and the closure digital transition of some of that and these papers and Australia and the fourth.
Quarter and fiscal 2019, we expect overall profitability treads to improve and we expect modest revenue impacts from and new licensing agreements.
And our other segment, we expect the fourth quarter cough to increase around $20 million. This is the price and part due to the reduction of bonuses and the prior year higher share price and the cost relation to the global share finished.
And.
I'll use a day free cash flow available with $762 million compared to $63 million and the price benefiting from higher EBITDA improvements and working capital and lower Capex. Some of the working capital improvement is timing relations with very pleased with the progress made today and also night that the fourth quarter balance shape will reflect the proceeds.
From a recent thing and nights offering together with the three recently announced acquisitions, which will impact our interest expense and cash balance.
Let me hand, it over to the operations to Q&A.
Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad. If you were using a speakerphone. Please make sure your mute function as turned off to allow your signal to reach our equipment.
Also management is ask that you limit yourself to one question again per star one to ask the question Dupont's for just a moment to everyone and opportunity to signal.
Thank you and we will take our <unk>.
First question from Ellen Gould with Luke capital.
Thanks for taking the question.
Robert These results a realtor are quite impressive can you just look out three five years and give us some sense of what the opportunity is for digital real estate and the United States.
Well and and I'm not sure on that price entrance our services.
And prosper as hopeful as a suit.
And.
Firmly of the view that real estate properties make ups world's leading digital and property company.
But we also firmly of the view that we have vast potential for growth given the markets and which we operate and given how successful acquisition strategy.
And and equally real firmly of the view that the full value of the digital appropriately property assets from the potential is not entirely recognize note share price.
Now have global leadership Rivera real estate assets, we've Tracy fellows, and and and other appointment itself was a sign of interest.
Our intention and and ambition.
And she's she's not just working through ideas for the future she's driving the business and seeking out new opportunities judges city such as Rachel.
And such as other adjacencies that will generate even more momentum.
And you'd like to do so thank you now and we'll take our next question. Please.
Thank you we'll take our next question from Mccain and on with Goldman Sachs.
Morning go ahead, and just in terms of investment that mood and that was right and he'd be cool, yeah should we be expecting investment to step up and the fourth quarter relative to the third quarter and then you guys will see sports book.
Yeah. It was just interested and how we think about the pricing.
Okay, and I'll I'll take that one I think just that real true. If you think about the cough the queue for we did guide to and additional 40 million cost and the second half.
<unk> and the bulk of that $40 million and we quoted bouquet and Q4.
If you compare that to the to the key three numbers and we also expect those numbers to scale up from a variable cost is keeping the revenue growth.
In relation to Dow Jones, we would expect to see high cost and queue for largely as a consequence of compensation and marketing expenditure, but we have been very encouraged by the ongoing cost focuses and that business and as you could see they had a pretty good costs results and this quarter as well.
Probably more investment coming through real quick and what we would expect the same doctrine.
Thank you Okay. Thank you Jane Todd and we'll take our next question. Please thank.
Our next question comes from Alexia Quadrumvir with J P. Morgan.
And thank you and my questions on on the Journal Dow Jones Uhm. When you look at the Wall Street Journal Digital subscription do you think that's a change and administration here and here and you at 10 and has a positive is it a tailwind going for for future digital subscriptions are you know isn't isn't and the negative or is it near.
So I'm curious what day curious.
Curious to hear and how do you think the change and the political environment may or May not you know and Cohen digital sound good yeah.
The key factor for US is the quality of the Wall Street Journal and probably a a journalism quarterly.
Leadership, we have gross dream of Joe Jones with Salmonella too.
Josh strength, Chief revenue officer, who from.
Done a sterling job collectively and developing crowd digital expertise so.
We don't have to worry about it from.
Becoming a trump slump.
As you might see.
Places the Wall Street Journal Journalism, obviously rise above the Earth and.
And so the gormless retro price.
Thanks, and cheering the jaundice journalism that you see and some other places and so.
The Dow Jones results certainly rise above those for the New York Times, both and circulation now and the news segment and and.
Digital advertising, which was almost doubled over the New York times.
And so.
In essence real.
Sure and quality of the journal that gives us.
And some and those are very positive wins that we're seeing.
No and confident and we will see in the future.
And and like fear I think the other thing that is really encouraging for us and you can always.
And we'll talk over the last 10 courses and the call from quarter sort of and the ads that so we had this quarter and the second highest we've had those 10 periods and so that gives us actually about the ongoing growth potential within.
No Jones and.
And to further supplement Susan's was cops devotion acquisition of <unk> will give us further opportunity to up so cross so across both properties and.
And that's why.
Required.
<unk>, which is close close to closing.
And that's why not investment itself was an indication of confidence and the signal.
Thank you and I'd like to.
Solid we'll take our next question please.
Thank you. Our next question comes from and Chill Rykowski with credit Suisse.
Hi, Robert Hi, Susan more questions from the other segments.
[noise] costs were up.
Feed chameleon and quarter year on year, and you obviously guarding to a further 20 million increase and key for.
Just interested and warps driving being commend duopoly from relative to the 50 Mueller and number which gave us back and said I made sure to shape Ross performance driving bonuses, so rainy call it would be useful and each.
And the element of catch up and those numbers.
As we look into a flow of 22 could we expect a stable cost spicy and all that could be a potential for a drop as well. Thank you.
Yes, I'm looking to fall, we obviously had the absence of some bonuses and Q4 of last year and so we obviously wouldn't expect to see that issue. So we've got that means and that that's happening.
We also had some of the COVID-19 impacts coming through and Q full. So we did have a couple of one off cost savings and heat and queue for a philosophy, which would be and save a patient expect to see your patient and queue for this year.
And we also have the scale office from the news next that transformation project cost for the guy to heat and queue for so I think when we look sort of going forward, we wouldn't expect to save a lodge and even that would maintain and equity call from increasing the share price continues to go up we will have that natural fluctuations. So we did have a very depressed share price as a consequence of COVID-19 back and queue for.
And we've been seeing.
Nice reasons come through this year.
Thank you and Joe Tog, we'll take our next question. Please.
Thank you. Our next question comes from Craig Hebrew with Huber Research partners.
Oh, Thank you what to focus if I could on your IBD acquisition and the book segments. You guys are buying from Houghton Mifflin Harcourt, obviously spending a little bit over $600 million from the too I wanted to hear if you agree with this I mean my take on this and this environment and you guys and spend over $600 million, which is unlike you do too often and I. Thank you well.
And your balance sheet pretty conservative and the Kobe pretty conservative over the years, but for you to do this right now do you agree with my thought that you must be feeling pretty good pretty optimistic and the direction of the virus the direction of the global economies and more importantly direction of your revenue revenue great cost containment.
And it altogether. They gave you a conference with and spend $600 million plus.
Greg and depressing and that's a fair assessment, we'd certainly have confidence and L teams and their ability to integrate those acquisitions, we certainly have a fundamental face and dissected themselves and you will see that the financial impact of the acquisition through and.
Almost immediately positive for both revenue and Jupiter.
And the both interest as business early and the whole and mix with our quote Journal book Division Harvey profitable.
And even Australia mortgage choice will surely complement the existing mortgage gross business it.
And as I mentioned earlier and RBG.
Being 90 per cent digital now is extremely contemporary we will be able to cross sell it up so.
And make the most of our.
Existing contents and.
This is Harper Collins with Brian Maria and the city and there's no doubt we have a history of successfully integrating businesses.
So we fully expect profits to increase.
Both.
And thus tropical loans and Gus a new school.
Thank you Craig Todd we'll take our next question. Please.
Thank you. Our next question comes from there and link with Mcqueary.
Good morning, Thank you for the upload.
And just wanted to ask a question around guns Gypsy talked about this and.
And everything and coupons business and.
And you please give us a few from what the margin so like not necessarily you know 21, but perhaps you know it into the medium to and once you don't interesting.
For the Wall Street journal versus the routine and applause business place.
We don't give out the margin is actually for risk and compliance would say east side.
Hutch and.
And they've been scalable sorry, we offer.
And and good growth within that particular segment.
And as we indicated earlier the climate for risk and compliance is certainly conducive to gross given the.
And a U S administration is hopelessly intent upon increasing regulation and the neutral employers.
Thank you and Todd we'll take our next question. Please.
And does a reminder to ask a question. Please press star one our next question comes from Brian Horn with Morningstar.
Oh hi.
Unfortunately, Australia.
[noise], Oh, <unk> and strawberries.
Mmm.
Alrighty and.
Well.
We're certainly focused on.
All segments folk style and.
And we're genuinely delighted by the by the progress.
EBITDAR up 34% and the revenue trends, obviously improve and we haven't seen spin done from broadcasting that.
Some field.
And Cairo as as we mentioned on the cost per 1 million paying subscribers with the userbase already larger than try and bins growing week after week after week.
And frankly, all underpinned by World class cutting edge technology that provides a great user experience and it's.
Financial position overall is much more robust and Patrick simple and and the team deserve much credit for the markedly proved performance that means sweet frankly have options real options.
Thank you Brian Todd we'll take our next question. Please.
Sure at this time and we have no questions I'll turn it back to you closing remarks.
Great well. Thank you Todd. Thank you for all from participating and have a great day and as always we look forward to speaking with you all and the very near future.
Have a great day.
This concludes today's call.
Thank you for your participation you may now disconnect.
[music].
[music].
[music].
[music].