Q3 2022 News Corp Earnings Call
Good day, ladies and gentlemen, and welcome to the News Corp. <unk> fiscal 2022 conference call. At this time are getting additional participants and should begin in a few minutes. We appreciate your patience and ask that you. Please remain online.
[music].
Good day, ladies and gentlemen, and welcome to the News Corp. <unk> fiscal 2022 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 operator.
Hello, everyone and welcome to news Corp's fiscal third quarter 2022 earnings call.
Our earnings press release about 30 minutes ago and posted on our website at Newscorp Dot com on.
On the call today are Robert Thomson, Chief Executive and Susan <unk>, Chief Financial Officer.
We will open 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 corp's business and strategy.
Actual results could differ materially from what is said Theres Corps 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 in our earnings release with that I'll pass it over to Robert Thomson for some opening comments.
Thank you Mike I'm delighted to report that revenues and profitability were at a new record for the third quarter. Since the company has rebuilt in 2013 building comprehensively on the momentum of our record performance in preceding quarters.
News Corp delivered $2 $5 billion of revenues up 7%. Despite the vicissitudes of currency volatility while profitability improved by 20% and that was despite the one time transaction costs for Opus acquisition, the tangible benefits to revenue and profitability of that transaction should be obvious in coming quarters.
To put the results in a broader context, we had changed more in profitability I've, a $1.3 billion through the first three quarters of fiscal 'twenty two than we did in any entire fiscal year since our rebirth in 2013, and there is certainly more to come in the fourth quarter.
Given the impact of the pandemic had not started transition of inflation by exogenous.
<unk> is in the extreme the Sterling results are testament to the strength of the Companys culture created and curated by Rupert and Lachlan Murdoch and the commitment creativity and passion of all our employees.
We are investing as well as returning capital to shareholders and have focus that investment on bolstering our growth pillars. The results of that productive investment should be felt for years to come our core product suite has expanded as has outreach and we expect that auspicious combination okay.
Our long term growth.
Following a strong fiscal 'twenty, one and first half of fiscal 'twenty to Dow Jones continues to power ahead with revenues and segment EBITDA post sharply rising so it's the lesser was impacted by the onetime costs related to the IPO transaction segment, EBITDA was up 7%, even including the <unk> costs.
Adjusted segment EBITDA actually rose 16%.
This along with base chemicals, which we expect will close by the end of next month represents an exciting opportunity for Dow Jones, extending the depth and reach about using information capabilities in the commodities sector. The appetite for Jackson analysis and insights in the energy renewables chemicals and related fields is strong.
And growing and we believe Dow Jones is ideally positioned to capitalize for many years to come.
Not only did we acquire opus at a rather favorable price, but the recent surge in global commodity prices highlights the profound importance of this sector for Dow Jones, the need for a trusted and accurate information has never been more imperative and we expect to capitalize on that opportunity.
Ipass has healthy subscriber growth with robust margins and extremely high retention rates.
Given the lack of valuable up between the customer bases of Dow Jones at Opus, We see very strong cross sell and upsell potential using the vast WSJ IPG and market watch audiences as a premium pool for customer leads.
Subscriber growth at Dow Jones remained robust with WSJ digital only subscribers crossing 3 million this quarter expanding at a robust 16% right.
Digital only subscriptions across all Dow Jones consumer sides increased by 19%, which also reflects the consolidation of IBD and early success in new bundled offerings.
Digital advertising Virgin, 21%, marking the seventh consecutive quarter of double digit percent growth, notably print advertising has actually expanded for four consecutive quarters in double digits.
While the conflict in Ukraine had a short term impact on advertising given that certain advertisers did not want juxtaposition with wall coverage overall trends remained favorable the imposition of sanctions and expansion of watch list underscore the value of the Dow Jones risk and compliance business, which continued its unbroken streak.
Of rapid growth in Q3, when it recorded the 27th straight quarter of double digit increases.
And on Ukraine, we are deeply appreciative of the professionalism of our journalists and their support teams in covering the tragic conflict and bringing understanding to readers around the world.
At digital real estate services revenues and segment EBITDA continued to expand at a healthy rate revenues at Ari I grew a robust 30% following a surge in listing value.
Also benefited from the integration of mortgage choice, which obviously provides another means of monetizing our valuable leads.
In the U S. The real estate market is in the midst of flux with historically low inventories and rising interest rates home prices generally have continued to rise there is much variation depending on the location while rents are increasing at a double digit rate.
Affordability and supply, which are obviously related remain issues with first time buyers, who also facing escalation is mortgage Reits third by historical standards rights remain relatively low.
The ebb and flow of market forces is not unusual and we believe the opportunity for real to dotcom unused coal has never been greater as the Digitization of the property market continues at pace and current trends are likely to expedite that evolution.
Our product innovation has accelerated our scale has increased and we are in the early days of venturing into relevant adjacencies with large addressable markets.
Despite the shifting market conditions move posted revenue growth in the third quarter and I aim to be the digital marketplace for consumers and the industry is clearly paying dividends as our average monthly unique users exceeded 100 million in March over the past two years third quarter revenues at the digital real estate services segment have increased.
By 59%, which gives a measure of both the gross and the opportunity.
The past two years have been remarkable for book publishing with third quarter revenues rising 5%. This year, which means that there has been a 25% increase since the third quarter of fiscal 2020 and this in an industry that some observers had presumed to be mature we expect sales to continue at significantly.
Higher levels than before the pandemic.
Unsurprisingly EBITDA for the segment was challenged including by supply chain cost increases for paper printing and distribution. We expect these near term disruptions to abate over time.
We also expect continuing success from both new releases and bolstered backlist, which was enhanced by the acquisition of the Houghton Mifflin Harcourt books <unk> Media Division successful releases included the best selling memoir by former Attorney General Bill Bock, one damn thing after another red handed by Peter Schweitzer.
And the powers apartment by Lucy Foley.
Given the public's abiding appetite for reading Harper Collins is certainly well positioned for future success. We're excited about finding me the new book by Viola Davis released late last month, and we anticipate a surge in interest in the Lord of the rings franchise for which we now have global English language rights give.
The launch of Amazon's Landmark series later this calendar year. It is worth noting that according to Amazon the teaser trailer for that series broke a global record for the most watched entertainment trailer to debut during the Super Bowl within 24 hours of the trailers release it had 257.
Billion views.
Significantly improving.
P. As Morgan's much anticipated program launched on April 25th and it more than exceeded expectations in reach across the UK. The U S and Australia. Thanks to the power of our platforms. The pivotal partnership with Fox News and the quality of the programming not only does talk T V plan to be abroad church of diverse views.
And lively discussion it offers a new opportunity to leverage our strong brands talented people and premium video content in the U K and around the world into.
In subscription video services. The third cortisol continued progress in reshaping the Foxtel group as a growth oriented subscription business with continued success and streaming stable revenues and solid cash generation, notably Keyuan binge, both surged into quarter and are now reaching record numbers of subscribers.
Taiyo plans to implement a price increase as it benefits from it scuttled platform and high quality production, which is driving record ratings at the start of the season Goodbye and RL and the I F L.
We're all total paying streaming subs reached nearly 2.6 million up 62%.
We remain pleased with Fox tells turnaround and have a great optimism about it's near and long term future. We are continuing to explore all options for foxtel to maximize its value while watching closely old relevant developments in the financial markets.
Through the first three quarters of fiscal year 20, twenty-two new score is well on track for its most profitable years and separation clearly besting last year's record results.
Success is building Unsuccess, we will relentlessly continued to drive outperformance in the quest for enhanced returns for our investors complacency smugness and hubris are not words in our vocabulary.
New score is a company transformed more intensely digital more intelligently global with strong growth in our core markets and much unrealized potential <unk>.
Macroeconomic challenges affect all businesses, whether that be the supply chain corrosive inflation or febrile currency markets, but our resilience adaptability and ingenuity with stress tested by the pandemic and led to record revenues and profits. We understandably are optimistic about the use of head.
For more granularity about quarterly performance I now hand, you over to the Adroit Susan Panocha.
Thank you Robert Fitzco 20, twenty-two headquarter total revenues, where approximately $2.5 billion up 7%, reflecting strong Christ across a copayment led by digital real estate Jennifer.
Which includes benefits my recent acquisition and are continuing shift to digital across the company.
Titled taken in April with $358 million higher than the prior year by 20% and as Robert mentioned, not the highest state quarter titles segment apricot on record incorporation, reflecting how ongoing microphone cough.
Those results came despite approximately $50 million of one time costs related to the eyepiece transaction, which closed on February the 28th and a six to 8 million dollar negative impacts on currency headwinds.
Excluding acquisitions currency fluctuations and other items described generally adjusted revenues and a chapter titled segment, EBITDA by 6% and 25% respectively.
Posted a P. S for 14 cents compared to 13 cents in the Pi Yeah, [noise] adjusted earnings per share in the quarter with 16 cents compared to 9% in the prior year.
Moving on to the results for the individual reporting segments, starting with digital real estate services.
Segment revenues were $460 million, an increase of 19% compared to the prior year [noise].
The results include the contribution from the acquisition of mortgage choice as well as the negative impacts from foreign currency fluctuations.
And adjusted basis segment revenues increased 14% sect.
Segment, EBITDA, right, 17% $237 million or up 18% on and adjusted basis.
The second course at the driver of segment EBITDA improvement with Rei, well segment EBITDA contribution from my foot flat compared to the prior year.
News revenues were $170 million similar to last quarter and up 5% a year.
<unk>, 37% revenue growth in the prior year and is now approximately 44% higher than pre pandemic levels in the third quarter of fiscal 2020.
For the quarter real estate revenues grew 7% and accounted for 85% of total revenue.
Prof optimization within the call agent business home price appreciation and the resulting fly through to commission within the referral model together with higher advertising help to offset limited infantry impacting both lead volleyed in transaction volume.
Referral offerings accounted for approximately 28% of total revenues up three percentage points compared to the prior year and what's the biggest driver of year over year revenue growth this quarter.
Based on our internal metrics Realtors average monthly unique he uses when 95 million in Q3, reaching 100 million in March [noise], well unique he uses with down 3% year Ivy They are still 40% above pre pandemic levels in the third quarter of fiscal 2020.
Like the second quarter revenue growth would partially offset by the divestiture of top producer in March which negatively impacted revenues by approximately two percentage points.
Leap volumes in the quarter with sequentially higher than the second quarter. However, they declined 22% compared to the prior year impacted by lower new listings in the recent rise in mortgage right.
The team remains focused on driving audience cry scaling the core real estate business and investing in and growing adjacent businesses, while keeping a watchful eye on the macro environment.
Alright, I had another very strong course with revenues rising 30% year on year on a reported basis to $246 million, which includes associate million dollar contribution from the mortgage choice acquisition.
Alright, I enjoyed another quarter of favorable trends, including an 11% increase in Australia and residential new by listing with Sydney up 14% in Melbourne up 8% to spot lapping tough comparison.
Alright, I also benefit from higher yields increased it penetration and favorable product mix financial services benefited from an increasing settlements as well as the integration of mortgage choice and the team continues to interface with the launch of Premier plotting March and he hopped offering that to live with additional marketing features to listing.
Please refer to <unk> earnings release and their confidence following this call for Mate's House.
Turning to the subscription video services segment revenues for the quarter were $494 million relatively stable from the second quarter and down approximately 6% compared to the prior year on a reported basis [noise]. She was a foreign currency headwinds on and adjusted basis revenues Rose, 1%, a strong improvement from the second quarter right.
Monastery percent.
Streaming revenues now accounts for 20% of circulation and subscription revenues. So notable.
Notable acceleration in the growth right from the second quarter.
Social clients being paid subscribers across the <unk> reached 4.3 million at quarter end up 23% year over year.
Total subscribers, including Tieless, what I have a 4.5 million.
The year over year increase with driven by high up engine Kato subscribers, partially offset by the expected decline in residential broadcast subscribers commercial subscriptions rise modestly I for the pie a help by the evening of Lockdown restrictions.
Total streaming subscribe is reached over 2.7 million with paying subscribers up 62% from the prior year and 421000 sequentially to approximately 2.6 million.
Streaming subscribed has reached 59% of Foxtel total paid subscriber base.
Benefited from the return of the winter sports codes and so record early writings with total subscribe as I have a 1.2 million 138000 pace described as we're editing the quarter a notable acceleration from the second quarter, taking paid subscribers to over 1.1 million.
Similar to Cairo, binge had a strong quarter, increasing a total subscribers to have a 1.3 million paying subscribers increased too I have a 1.2 million up 135% from the prior year.
Finish added 284000 paid subscribers in the quarter. The most quarterly edition since the launch of the service in 2020.
Finches growth continued to be driven by the depth and diversity of content library and the popularity of new shows such as Love me, a pinch original euphoria and the walking dead.
[noise] Fo'c's'le ended the quarter with over 1.5 million residential broadcast subscribers down approximately 11% with the rate of decline stable versus the second quarter <unk>.
Commercials subscribe has ended the quarter 240000 and improvement by sequentially and euros a year.
Retaining high value customers remains the focus for broadcast subscribers, which has led to change improvement with Chen reducing or my six percentage points here I V. A in the quarter to 14.3%, which reflects eight consecutive months of year over your chin reduction broadcast up to rose by 2% to 82 Australian dollars.
[noise] segment EBITDA in the quarter of $79 million with them, 13% versus the prior year driven by higher programming costs, partly due to increased availability of entertainment content as well as modestly high marketing investment and streaming.
Cough control remains a key focus of October and we continue to expect <unk> to be flat versus the prior year in local currency, which is helping to underpin strong cash generation.
The fourth quarter segment, EBITDA will face more favorable price comparison.
Moving on to Dow Jones.
Dow Jones continued its strong performance in the quarter with revenues of $487 million up 16% compared to the prior year with digital revenues accounting for 76% of total revenues this quarter up two percentage points from last year.
Results for the quota include IPD and one month of the recently acquired Opus.
Circulation and subscription revenues increased 15%, including 16% circulation revenue growth, primarily reflecting the acquisition of IBD and continued strong volume gains in digital only subscriptions.
Digital only net ads at Dow Jones for 167000 subscribers, including 118000 at the Wall Street Journal the highest quarterly edition this fiscal year.
[noise] professional information business revenues rose, 13% and accounted for 29% of revenues.
[noise] revenue growth from Richmond compliance increased 12% despite its tree percent negative foreign exchange impact driven by the higher entry right at the beginning of the year and strong growth across the Americas, Europe and Asia.
I piss accounted for approximately $10 million of revenues in the quarter.
As a reminder of the business day $129 million of revenues and it's last four year with very strong margin and with revenues almost old recurring and digital.
Advertising revenues, which accounted for 21% of revenues. This quarter remained very strong growing 20% to $102 million to spot typical price comparison.
The total advertising revenues rose, 21% in the quarter on top of 30% growth in the third quarter of the prior year and accounted for 62% of total advertising revenues.
We continued to stay strong yield improvement led by direct display and full particulars strength in the finance and technology categories.
Print advertising continue to surprise on the upside with I think the Saint growth year over year, partly due to AZ. Prior you can piss, but also to you to strength in the technology category.
Now Jones segment EBITDA for the quarter rose, 7% to $88 million following growth of 61% in the third quarter of the prior year [noise].
As mentioned earlier included in the quarter is approximately $50 million of one time transaction costs related to the latest acquisition.
Excluding the contribution from IBD, an artist currency fluctuations and other items disclosed in the release adjusted revenues and adjusted segment EBITDA for the quarter rose, 9% and 16% respectively.
Over the last few weeks, we have received questions from investors about how exposure to the war in Ukraine.
Across the company or exposure to the region is that Dow Jones the region accounts for a de Minimis amount of Dow Jones is gross revenues almost entirely and paid and so far the impact from close accounts and all canceled contract is immaterial.
We are also beginning to see opportunities in risk and compliance emerged you to increase sanctions and regulatory requirements.
[noise] at book Publishing Harper Collins posted 5% revenue growth $515 million and segment EBITDA fell 16% to $67 million. However consumption levels continue to remain materially above pre pandemic levels.
Current quarter results are impacted by the ongoing global supply chain and inflationary pressures on price and manufacturing cough as well as very difficult comparisons with the prior year, which benefited from Ohio backwards performance driven by the Bridgeton series by Julia Quinn.
The frigid in theory stew performed well this quarter, but revenue contribution was down approximately $14 million versus the prior year.
As flagged during a loft earnings Cole, we saw an increasing manufacturing call, partly due to supply chain issues, including higher inbound international price and fuel prices.
[noise] digital tiles declined 6% this quarter and accounted for 23% of consumer style, which was almost entirely explained by the lower Brigid in style, which do particularly well in the April format last year and also contributed to the strong margin performance in the prior year.
H and H continued to perform according to plan for the quarter H M. H contributed $35 million in revenues and $3 million each segment EBITDA and remains on track to deliver $20 million in annualized cost synergies.
Turning to news media the momentum any segment continued during the quarter revenues for $580 million up 5% versus the prior year, which included $25 million or approximately five percentage points of negative impact you to currency headwinds.
The underlying growth right in local currency with similar to the second quarter.
We again for improvement in advertising as well as strong grossing circulation and subscription revenues benefited by the contribution from a recent content licensing revenues.
Within the segment revenues at Newscorp, Australia unusual K increased 2% and 4% respectively Wireless group and the New York Post also continued to show strong top line growth adjust.
I just did revenues for the segment increased 10% compared to the prior year.
Circulation and subscription revenues rose, 5% benefiting from strong digital subscriber growth incremental revenues from the platform agreements and cover price increases.
Currency headwinds negatively impacted circulation and subscription revenues by $12 million a full percentage point.
Advertising revenues increased 9% compared to the prior year with strength and digital across all our came off too most notably at the Sun, which Moulton double digital advertising revenues versus the prior year car.
[noise] currency negatively impacted advertising revenues by $10 million or five percentage points.
Segment, EBITDA of $39 million increase $31 million compared to the prior year, reflecting the higher revenues margins improved two of my 7% from 1% last year.
Results were partially impacted by hiring investment related to talk T V and marketing support for new digital product offerings at Newscorp, Australia.
I would know what to talk about some themes for the upcoming quarter.
We remain encouraged without strong you to date results and that we have already delivered record profitability since separation for the company at the end of Keith Tree [noise].
But we are clearly mindful of the lack of visibility from the ongoing impacts of the pandemic the broader macro economic impacts from the war in Ukraine, and the cost impacts from continued supply chain and inflationary pressures, particularly input publishing and now marked it together with wage inflation and talent retention across the company [noise].
We expect these challenges to continue in the short term.
Ah digital real estate services, Australia, and residential new by listing for April declined 8% impacted by the timing of the Easter and in fact I holidays.
I anticipate growth rate slow at the cycle strong prior periods lifting volumes grew 54% in the fourth quarter of last year at potential impacts around the upcoming federal election in my.
Please refer to Rei for more specific outlook commentary.
At move to spot tougher comparisons and the macro environment. We continue to see strong yields we expect to continue to reinvesting move as we drive the coal business and expand into relevant adjacencies, particularly in new homes and rentals timber.
Similar to Laci, we expect investment in the second half.
In subscription video services, we remained pleased with the performance of the streaming products and the ongoing focus on broadcast off who insured.
As mentioned earlier, we expect FOIA costing local currency to be relatively flat surface. The prior year and we expect improvement in profitability in the fourth quarter against the prior year.
[noise] at Dow Jones overall revenue trends across the business remain strong we do expect the rite of advertising growth to be impacted next quarter by a more difficult price comparison, which full advertising growth by 45%.
Excluding the impact from acquisitions, we expect the right of course gross to be higher than the third quarter as we continue to invest to drive consumers subscription and enhance our professional information business offerings and as Robert mentioned, we expect to close the faith chemicals acquisition in June in book publishing, we expect another quarter of strong Frontlist releases.
And supply chain and inflationary pressures to persist.
That news media overall advertising trains remain favorable, albeit recognizing that visibility is limited we continue to expect incremental annual revenues from the recent platform agreements with the majority if that allocated to news media weeks.
We expect incremental costs of at least $20 million in relation to productive investments across the businesses, including talk T V in the fourth quarter.
On the other segment weeks that cost in the second half to be slightly higher than the first half due to the facing of course, but lower than the prior year.
Finally note that this fiscal year he's on a fifty-three weight basis and will include an extra week of financial results I would also like to note that similar to the third quarter. We do expect foreign exchange headwinds to continue given the current spot right to the strange Allah in pounds sterling compared to the prior year.
With that let me hand, it over to the operator Q&A.
Okay.
Gentlemen, if you like.
Question.
Star one on your telephone keypad.
Speaker phone. Please make sure your main function is turned off.
<unk>.
Well, yes.
About yourself to one question per person.
Again star one for questions will pause a moment to give everyone an opportunity to signal for questions.
[noise], we'll take our first question from in the future.
Husky.
Please go ahead.
Hi, Robert Hi, Susan.
See here.
If I can just making two questions. Please I mean, the first one is on move I. Appreciate the comments, Susan you've just <unk> around the fourth quarter.
The comfort, particularly difficult we've I think it was 68% revenue crossing the <unk>.
Can you talk about what your benefit you might expect to see in that fourth quarter and could you conceivably see revenue grosz, we didn't move given that tough comp. That's the first question and frequently I have a question on the price of the buy back.
<unk> I think 150 <unk> <unk>.
<unk> <unk> <unk>.
G C face Skype to accelerate that particularly if you think there is value on offer in the current shape Ross and could we see that in the coming months. Thank you.
I'll I'll take the first question is about a move and this is a little of interest to you bye bye.
Give your focus with a quarter bitch.
Even our lead to bring a decline in G three or fewer houses there'll be fewer leaves.
The referral model is it we're focused on the quality of the quantity.
We can have.
More from each of those leaves by offering real dismal purposeful purchases.
Quantity of course matters would start with quality.
We've been building in recent years, but cool real estate revenues rose even understood.
Margaret Burke.
And as you said, that's all at 43% grows in the same quarter last year.
Steal a.
<unk> 2020.
And existing home sells until the 21 50.
50 per cent higher than 29 G.
Another thing to watch.
[noise] months and quarters.
Margaret.
<unk> being more important than refinancing which are dominated over the policy you use the mortgage companies were more focused on serving preexisting preapproved customers with refinancing and rapid decline <unk> will be relatively more valuable and we will surely extract that value.
And in churches in relation to the buy back your numbers were accurate that is what we have fought back today and you will have noticed from that that we've been buying back at a relatively steady right. Since we announced buyback flight last calendar year, we haven't given a timeframe in relation to the execution of that five back but as always we will continue to look at the reinvestment.
<unk> says the shareholder chairs and monitoring the ship.
Thank you.
We'll take our next question please.
Our next question is from cane Hannon with Goldman Sachs. Please go ahead.
Hey, guys, just two quick ones as well just tired and that price increase you mentioned, there and we'll call you can give us a round face timing in quantum of that that's what I do is that what it's gonna drive to improve profitability in the fourth quarter and then just news media given the inflationary pressures and that 20 million invest when you called [laughter]. It was a want to assume.
Downing margin for that segment and in the fourth quarter.
[noise], Hi, <unk> Uhm I'll I'll My text is so just in relation to carry the price increase will hit I think.
So we will actually say pretty limited impact of that in queue for such 250, an hour the ninth of May.
But we will obviously say the benefit that as we go through into the next financial year in relation to news media, what I would say about that is sweet. We obviously is seeing really strong growth within that segment of the course of the year and we are taking a balanced approach to reinvestment. So we are expecting to see profitability improve in Q4 of you.
Subject to revenue trends in foreign currency, and how that tried and we will make sure that the revenue upside.
Will help some of the cost.
Investments that we're going to have within that.
<unk> and we will continue to focus on margins within that segment.
Thank you Green.
We'll take our next question please.
We'll take our next question from David Cardiovascular with J P. Morgan. Please go ahead.
Hi, guys. This is John or do so on for David just one quick one for me I just it's only been two months, but I thought I would just ask you about an early warning you integrate yoga this acquisition and I I realized you have a significant amount of expertise inspector, particularly with Dow Jones, but anyway that might also affected.
Chemicals when it closed in next month and its potential future integration thereafter.
Yeah, we're very pleased with the first phase of integration.
But.
Clearly enough international events with only highlighted.
You can omit commercial and political importance of energy policy and prices and.
And the shift to renewables.
And vice chemicals, or the essentials 100 per cent digital recurring subscription revenues and <unk>.
Premium products at premium prices and we have a very large base of potential professional customers barons W. J I V D and market audiences. The lost boys will create an ongoing funnel impossible premium subscribers vipers.
Impacts in coming quarters and it is obviously this is a pivotal moment the Dow Jones.
Thank you John Keith we'll take our next question. Please.
Take our next question from Derek Lowe.
With Macquarie. Please go ahead.
[noise] apologize thanks for your time Uhm, just one for me looking at the professional information would be good for you guys. One second.
We will get with you block Dogecoin club strong uhm blustery, largely lawn with uhm. So it will be cost will be all day.
<unk> claws effective on news was.
Slowly because of its go with you uhm any color would be totally gone to sleep.
Please.
The professional information business.
Was provides unimportant service not just for the Provisionals odd, but also for a consumer journalism and.
Fully invested in the in the future of developing that news was business.
Incoming cortisone.
Five this acquisition just how much potential revisionism by some business actually has.
But can you subscribe as.
Still increasing to infect people.
I'm sorry.
The detail I gave us the details I will give you the <unk>.
Did you say that.
The effect is relatively stable.
Our next question please.
Next question is from Brian Anne with Morningstar. Please go ahead.
Robert.
That in the news media.
Rather than in.
In the UK.
Can you please confirm that <unk>.
Does that mean in Australia, and U as print advertising revenue East you white bigger than digital advertising revenue.
Mmm no none of that is the second proposition is not accurate.
Advertising generally has been excellent, particularly in digital and you see it from Dow Jones to to the New York Post, which is he's on track as we've indicated for genuine profitability, but across in charge.
The business units Dow Jones advertising up 20% <unk>, 32% <unk> unused Australia two per cent, obviously currency effected sir stronger and indications are that <unk> relatively robust.
Thank you, Brian Keith will take our next question. Please.
At this time, we have no further questions in the queue.
Great well. Thank you all for participating. Thank you can you have a wonderful day and we look forward to speaking with you soon.
Ladies and gentlemen, this concludes today's conference we appreciate your participation.
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