Q2 2024 News Corp Earnings Call

Operator: Thank you all. Today's conference is being recorded. Media will be allowed on a listen-only basis.

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

Operator: At this time, I would like to turn the conference over to Michael Florin, Senior Vice President and Head of Investor Relations. Thank you very much, operator. Hello everyone, and welcome to News Corp's fiscal second quarter 2024 earnings call. We issued our earnings press release about 30 minutes ago, and it's now posted on our website at newscorp.com. On the call today are Robert Thompson, Chief Executive Officer, and Susan Panuccio, Chief Financial Officer. We'll 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, but actual results could differ materially from what is said.

Michael Florin: Thank you very much operator, Hello, everyone and welcome to news Corp's fiscal second quarter of 2024 earnings call. We issued our earnings press release about 30 minutes ago, and it's now posted on our website at Newscorp Dot com on the call today are Robert Thomson, Chief Executive and Susan <unk> Chief Financial Officer.

Michael Florin: We also have some prepared remarks, and then we'll be happy to take questions from the investment community.

Michael Florin: 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 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.

Michael Florin: 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 in the earnings releases for the applicable periods posted on our website. With that, I'll pass over to Robert Thomson for some opening comments. Thank you, Mike.

Michael Florin: 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 the ARINC releases for the applicable periods posted on our website.

Michael Florin: With that I'll pass over to Robert Thomson for some opening comments.

Robert James Thomson: Thank you Mike for the second quarter in succession Newschool has achieved growth in both revenue and profitability and we believe there are strong prospects for further growth as difficult inauspicious background conditions ease in some of our markets.

Robert James Thomson: For the second quarter in succession, News Corp has achieved growth in both revenue and profitability. And we believe there are strong prospects for further growth as difficult, inauspicious macro conditions ease in some of our markets. We saw particularly robust results across the three core pillars of our company, Dow Jones, book publishing, and digital real estate services, where there was resounding improvement in Australia in Q2. And there are early signs of recovery in the U.S. residential sector after the most sluggish market conditions in almost three decades.

Robert James Thomson: We saw particularly robust results across the three core pillars of our company Dow Jones book publishing and digital real estate services, whether it was resounding improvement in Australia in Q2.

Robert James Thomson: And there are early signs of recovery in the U S residential sector. After the most sluggish market conditions in almost three decades.

Robert James Thomson: Given the potential of our world-leading brands, we remain intent on creating long-term value for investors, and, as part of our commitment, our diligent, concerted review of the company's structure continues apace, looking at the top line results. News Corp's second-quarter revenues rose 3% to $2.6 billion, and profitability surged 16%, marking the third consecutive quarter of profit growth in testing economic times. Our net income for the quarter rose to $183 million from $94 million in the same quarter last year, while our reported EPS was $0.27 against $0.12 for the same period last year. The company's digital progress and prowess are increasingly evident. Halfway through fiscal 2024, digital now comprises approximately 52% of all revenues. That is more than an e-evolution; it is an e-revolution.

Robert James Thomson: Given the potential of our world leading brands, we remain intent on creating long term value for investors and as part of that commitment a diligent concerted review of the company's structure continues apace.

Robert James Thomson: Looking at the topline results News Corps second quarter revenues rose, 3% to $2 $6 billion and profitability surged, 16%, marking the third consecutive quarter of profit growth in testing economic times.

Our net income for the quarter rose to $193 million from $94 million in the same quarter last year.

Robert James Thomson: While our reported EPS was <unk> 27 cents against 12 since for the same period last year.

Robert James Thomson: The company's digital progress and prowess are increasingly evident halfway through fiscal 2024 digital now comprises approximately 52% of all revenues that is more than an E. Evolution. It is N E Revolution, one that has touched and transformed every element of every bid.

Robert James Thomson: One that has touched and transformed every element of every business, and we are far from satisfied, far from complacent, far from complete. We are seeing the collective benefit of our conscious strategic shift away from potentially volatile advertising revenues to growth in circulation and subscription revenues. In fiscal 2014, nearly half of News Corp's revenues were from advertising, with 31% from circulation and subscription. There has been a fundamental metamorphosis.

Robert James Thomson: And we are far from satisfied far from complacent far from completion.

Robert James Thomson: We are seeing the collective benefit of a conscious strategic shift away from potentially volatile advertising revenues to growth in circulation and subscription revenues in fiscal 2014, nearly half of news Corps revenues were from advertising with 31% from circulation and subscriptions there has been a.

Robert James Thomson: <unk> metamorphosis in the first half of the fiscal year advertising had receded to 16% with circulation of subscriptions subject of 44%.

Robert James Thomson: In the first half of the fiscal year, advertising revenue had receded to 16%, with circulation of subscriptions surging to 44%. Overall, News Corp, as of Q2, had over 7 million subscriptions to our news brands, including The Wall Street Journal, Barron's, The Times and Sunday Times, The Australian, and other publications. And we have an additional 4.3 million paid subscribers at Foxtel in Australia, which includes our popular streaming services Kayo and Binz. And those figures don't include the growing number of loyal subscribers at our professional information business at Dow Jones, where the average retention rate is comfortably above 90%. Artificial intelligence, with all its permutations and perturbations, will play an increasingly important role in most businesses. We expect to be a core content provider for generative AI companies who need the highest quality, timely content to ensure the relevance of their products. The corny Kellogg cliché is that AI companies are selling picks and shovels during this seeming gold rush.

Robert James Thomson: Overall used core as of Q2 had over 7 million subscriptions to our news brands, including the Wall Street Journal Barrons, The times and Sunday Times, the Australia and other publications and we have an additional 4.3 million paid subscribers at Fox, telling Australia, which includes our popular streams.

Robert James Thomson: Services Kao and binge.

Robert James Thomson: And those figures don't include the growing number of loyal subscribers at a professional information business at Dow Jones, where the average retention rate is comfortably above 90%.

Robert James Thomson: Artificial intelligence with all its permutations and perturbations will play an increasingly important role at most businesses, we expect to be a core content provider regenerative II companies, who need the highest quality timely content to ensure the relevance of their products.

Robert James Thomson: The corny kilo cliche is it AI companies are selling the picks and shovels during the seeming gold rush well, we are selectively reselling gold nuggets in those crucial negotiations are at an advanced stage.

Robert James Thomson: Well, we are selectively reselling gold nuggets, and those crucial negotiations are at an advanced stage. It is reassuring that certain digital companies appreciate the value of integrity, quality, and creativity. And, while certain other media companies prefer litigation, we prefer consultation, as the former is merely creating a gold rush for lawyers. Courtship is preferable to courtrooms.

Robert James Thomson: It is reassuring that certain digital companies appreciate the value of integrity quality and creativity and while certain other media companies prefer litigation, we prefer consultation as the former is merely creating a gold rush for lawyers courtship is preferable to court rooms, we are wooing not suing but.

Robert James Thomson: We are wooing, not suing. But let's be clear. In my view, those who are repurposing our content without our approval are stealing. They are undermining creativity.

Robert James Thomson: But let's be clear in my view, those who are repurposing, our content without approval are stealing die or undemanding creativity counterfeiting is not creating any AI world is replete with content counterfeiters.

Robert James Thomson: Counterfeiting is not creating, and the AI world is replete with content counterfeiting. I would like to compliment Sam Altman of OpenAI, who has shown a clear understanding of the social importance of journalism. He also appears to have emerged unscathed from his first visit to Davos, where there is always an attitude at altitude.

Robert James Thomson: I would like to compliment Sam element of open AI, who has shown a clear understanding of the social importance of journalism. He also appears to have emerged unscathed from his first visit to Davos, where there is always attitude at altitude.

Robert James Thomson: We are hopeful that again, News Corp will be able to set meaningful global precedents with digital companies that will assist journalists and journalism and ensure that Gen AI is not fuelled by digital dross. We speak of AI hallucinating, yet we as a society are hallucinating if we don't focus firmly on provenance at a time when even the very words misinformation and disinformation have themselves become sources of misinformation and disinformation. Too many media companies are scanning the landscape and presuming that they have a glimpse of the future, and yet they cannot distinguish between trendiness and actual trends. Too many media companies, for too long, have been guilty of the Abilene Paradox. Before I return to the results in detail, I must mention once again our colleague Evan Gershko, who continues to be unjustly detained in a Moscow prison. He has been incarcerated for almost a year solely for being a highly professional journalist.

Robert James Thomson: We are hopeful that again newschool will be able to sit meaningful global presence with digital companies that will assist journalists and journalism and ensure the gen. II is not fueled by digital draws.

Robert James Thomson: We speak of the AI hallucinating it yet we as a society are hallucinating, if we don't focus firmly on provenance at a time when even the very words misinformation and disinformation have themselves become sources of misinformation and disinformation.

Robert James Thomson: Too many media companies are scanning the landscape and presuming that they have a glimpse of the future and yet they cannot distinguish between trendiness and actual trends too many media companies for too long has been guilty of the Abilene paradox.

Robert James Thomson: Before I turn to the results in detail I must mention once again, our colleague Evan Gush Kovich, who continues to be unjustly detained in Moscow prison. He has been incarcerated for almost a year solely for being a highly professional journalist.

Robert James Thomson: We at News Corp, and of course Evan's family and many friends, hope that justice will prevail and that he will be released immediately. I would like to personally thank all those who, publicly, and not so publicly, have been working diligently to secure his emancipation. Turning now to Dow Jones, which yet again achieved its highest level of quarterly revenues and profitability since News Corp's acquisition. That result is thanks to solid performance across the business, most notably in the increasingly successful professional information business, which remains on track to be the largest contributor to profitability at Dow Jones this fiscal year. The professional information business is seeing robust growth due to the integration of OPUS, which was completed ahead of schedule, and CMA, which is near complete.

Robert James Thomson: At News Corp, and of course Evans family and many friends hope that justice will prevail and that he will be released immediately.

Robert James Thomson: I would like to personally thank all those who publicly and not so publicly have been working diligently to secure his emancipation.

Robert James Thomson: Turning now to Dow Jones, which yet again achieved its highest level of quarterly revenues and profitability. Since news Corps acquisition that result is thanks to solid performance across the business most notably in the increasingly successful professional information business, which remains on track to be the largest contributor to profitability at Dow.

Robert James Thomson: Jones this fiscal year.

Robert James Thomson: The professional information business is seeing robust growth due to the integration of Opus, which was completed ahead of schedule and CMA, which is near complete I would like to compliment in particular, the new school finance team for Master minding, executing and delivering the opus and base chemicals deals, which have been so critical to Dow Jones burden.

Robert James Thomson: I would like to compliment in particular the News Corp finance team for masterminding, executing, and delivering the OPUS and Base Chemicals deals, which have been so critical to Dow Jones's burgeoning growth. Executives at Dow Jones are far from smug and are building a bevy of new and compelling products. For example, Opus's Analytics Pro used our database of more than 130,000 fuel stations to track visits and help customers assess their pricing strategies and market trends, as well as compile customer loyalty rates and demographics, among other valuable, actionable data points.

Robert James Thomson: <unk> growth.

Robert James Thomson: Executives at Dow Jones are far from smoke and are building, a bevy of new and compelling products.

Robert James Thomson: For example, Opus is analytics pro utilizes our database of more than 130000 fuel stations to track visits and help customers assess their pricing strategies and market trends as well as compiled customer loyalty rights and demographics among other valuable actionable data points.

Robert James Thomson: Meanwhile... Risk and Compliance's financial instruments product, in partnership with Big TXN, provides a feed of R&C sanctioned profiles mapped to commonly used financial instruments, which is crucial compliance cartography in a heavily regulated world, and DJ Integrity Check, in partnership with Sapien, provides generative AI-driven insight into companies and relevant potentially problematic individuals. Subscriptions at the news business are continuing to grow, and during the month of January, average daily digital subscriptions to Dow Jones' portfolio of Dow Jones newspapers, including the Wall Street Journal, Barron's, Market Watch, and Investors Business Daily, reached over 4.9 million, which represents more than double the pre-COVID average level of 2.4 million digital subscriptions in Q2, fiscal 20. The acceleration of digital subscription growth has been driven, in part, by the team's bundling of products, which is designed to increase reader engagement and reduce long-term churn.

Robert James Thomson: Meanwhile, <unk>.

Robert James Thomson: Risk and compliance as financial instruments product in partnership with Big T X and provides a feat of RNC sanction profiles mapped to commonly used financial instruments.

Robert James Thomson: Which is crucial compliance cartography in a heavily regulated world.

Robert James Thomson: And DJ integrity check our partnership with sapiens provides generative AI driven insight into companies and relevant potentially problematic individuals.

Robert James Thomson: Subscriptions at the news business, they're continuing to grow and during the month of January average daily digital subscriptions to Dow Jones portfolio, including the Wall Street Journal Barrons market watch an investor's business daily reached over $4 9 million, which represents more than double the pre COVID-19 average level of 2.4 million digital subscriptions in Q2.

Robert James Thomson: 20.

Robert James Thomson: The acceleration of digital subscription growth has been driven in part by the team's bundling of products, which is designed to increase reader engagement and reduce long term chair.

Speaker Change: Well, we have purposefully shifted emphasis to recurring revenues at Dow Jones, we are happy to report that although we faced some challenges in print advertising digital advertising grew year over year for the first time since the first quarter of fiscal 2023. This positive result has been driven primarily by growth in the tech and automotive sectors.

Robert James Thomson: While we have purposely shifted emphasis to recurring revenues at Dow Jones, we are happy to report that although we face some challenges in print advertising, digital advertising grew year over year for the first time since the first quarter of fiscal 2023. This positive result has been driven primarily by growth in the tech and automotive sectors and, most notably, at wsj.com. Digital real estate services had a strong quarter, thanks largely to the prospering of REA, where there was 22% revenue growth year over year, fuelled by an 8% increase in listings, with heightened activity in the core Melbourne and Sydney markets and higher prices. REA India continues to expand rapidly and reported over 19 million monthly average unique visitors in December, solidifying its lead as the foremost digital housing platform in the world's most populous country, where strong economic growth and political stability have created a platform for further expansion. At MOVE, Realtor.com continued to be affected by the high US interest rates that have undermined activity in the market.

Speaker Change: Most notably at WSJ Dot com.

Speaker Change: Digital real estate services had a strong quarter, thanks, largely to the prospering of Rei, where there was 22% revenue growth year over year fueled by an 8% increase in listings with heightened activity in our core Melbourne, and Sydney market and higher pricing.

Speaker Change: Rei, India continues to expand rapidly and reported over 19 million monthly average unique visitors in December solidifying its lead as the foremost digital housing platform in the world's most populous country, where strong economic growth and political stability have created a platform for further expansion.

Speaker Change: At move Realtor Dot com continued to be affected by the high U S interest rates that have undermined activity in the market, but mortgage Reits are beginning to moderate and in recent weeks. There have been early signs of an increase in all important leads.

Robert James Thomson: But mortgage rates are beginning to moderate, and in recent weeks, there have been early signs of an increase in all-important leads. The National Association of Realtors announced that the index for pending home sales increased just over 8% in December versus the prior year, the largest increase since June 2020. Realtor.com's latest housing report revealed that January marked the third consecutive month of year-over-year inventory growth, with a 2.8% increase in newly listed homes for sale compared to January 2023. Unique users at Realtor have also stabilised, with December ComScore data signalling a return to normal.

Speaker Change: The National Association of Realtors announced that the index for pending home sales increased just over 8% in December versus the prior year the largest increase since June 2020 real.

At Realtor Dot Coms latest housing report revealed that January marked the third consecutive month of year over year inventory growth with a two 8% increase in newly listed homes for sale compared to January 2023 unique users at realtor have also stabilized with December Comscore data is signaling a return to growth.

Robert James Thomson: During the downturn, the Realtor.com team has been assiduously improving the user experience, broadening the portfolio of products for our customers, and bolstering the back-end technology so we are poised to take full advantage of the incipient recovery in the US housing market. HarperCollins had stellar results for the second successive quarter. This was thanks to strength in both the frontlist and the backlist, notably in the blossoming audiobook category. We saw 15% digital revenue growth in the quarter, fueled by a 29% audiobook sales increase due to a flourishing market and our new partnership with Spotify. Spotify appears to be expanding demand for audiobooks and opening the category up to new consumers. I would like to commend our thoughtful partner, Daniel Ek, for his commitment to creativity. In Q2, we saw success with bestsellers like The Pioneer Woman Cooks Dinners Ready by Reid Drummond, The Little Liar by Mitch Elbaum, Anne Patchett's Tom Lake, and Barbara Kingsolver's Demon Copperhead.

Speaker Change: During the downturn the realtor dot com team has been assiduously, improving the user experience broadening our portfolio of products for our customers and bolstering the backend technology. So we are poised to take full advantage of the incipient recovery in the U S housing market.

Speaker Change: Harper Collins had stellar results for the second successive quarter. This was thanks to strengthen both the frontlist and backlist, notably in the blossoming audio books category.

Speaker Change: We saw 15% digital revenue growth in the quarter fueled by a 29% audio book sales increase due to a flourishing market and our new partnership with Spotify.

Speaker Change: Spotify appears to be expanding demand for audio books and opening the category up to new consumers.

Speaker Change: Would like to commend our thoughtful partner Daniel <unk> for his commitment to creativity.

Speaker Change: In Q2, we saw success with best sellers like the pioneer woman cooks Dinner's ready by Reed Drummond, the little Liar by image album, and patch, it's Tom like and Barbara Kingsolver Damon cooperated. We also saw strong sales for Christian books, including the great disappearance.

Robert James Thomson: We also saw strong sales for Christian books, including The Great Disappearance by Dr. David Jeremiah, who is rapture ready, and the Bible itself. Looking ahead to Q3, we have great expectations for, among others, AJ Finn's End of the Story and I Am More Than by LeBron James.

Speaker Change: My Doctor, David Jeremiah, who is wrapped already and the Bible itself.

Speaker Change: Looking ahead to Q3, we have great expectations for among others, a J finn's end of story and I am more than by Lebron James.

Robert James Thomson: At Subscription Video Services, our new streaming aggregation product, Hubble, is expected to launch next month and improve the search experience for our cherished customers seeking entertainment and services. We believe Hubble will be the most effective conduit between consumers and content and add to Foxtel's success. In a volatile world, Foxtel has achieved eight consecutive quarters of revenue growth in constant currency while being acutely and astutely cost-conscious in managing the transition to... At CAO, we are looking forward to the upcoming winter sports season for Australian Rules Football and Rugby League, the two dominant sports, and at Binge, there has been early success with advertising at the basic tier, while continuing an ad-free service for premium customers. In news media, our news brands have seen improvement in traffic in recent weeks, a turnaround after convulsions in the first half, where there were algorithmic aberrations.

Speaker Change: That subscription video services, our new streaming aggregation product Hubbell is expected to launch next month and improve the search experience for our cherished customers seeking entertainment and sports. We believe Hubble will be the most effective conduit between consumer and content and add to the Fox tells success story.

Speaker Change: In a volatile world Foxtail has achieved eight consecutive quarters of revenue growth in constant currency, while being acutely and astutely cost conscious in managing the transition to streaming.

Speaker Change: At <unk>, we are looking forward to the upcoming winter sports season for Australian rules football and rugby league. The two dominant sports and it binge. There has been early success with advertising at the basic tier while continuing AD free service for premium customers.

Speaker Change: And use media unused brands have seen improvement in traffic in recent weeks a turnaround after convulsions in the first half where there were algorithmic aberrations gratifyingly, we experienced digital subscription growth during the quarter, Rebecca Brooks Entertainment use U K have overseen continuing progress at the times and Sunday times, which.

Robert James Thomson: Gratifyingly, we experienced digital subscription growth during the course of the year. Rebecca Brooks and her team at News UK have overseen continuing progress at the Times and Sunday Times, which set a new record for the quarter in digital subscriptions at 575,000 and saw significant digital ad growth, up 21% on a reported basis and over 15% in local currency. We expect the success of The Times to continue beyond Britain's borders with the imminent digital launch of The Times in the US. We are confident that it will resonate with discerning readers hungry for objective news coverage in a market saturated with narrative non-journalism. Australia.

Speaker Change: <unk> set a new record for <unk> for the quarter in digital subscriptions at 575000 and saw significant digital AD growth up 21% on a reported basis and over 15% in local currency.

Speaker Change: We expect the success of the times to continue beyond Britain's borders with the imminent did you launch of the times in the U S. We are confident that it will resonate with discerning readers hungry for objective news coverage in a market saturated with narrative non journalism.

Speaker Change: And used car, Australia news dot com that I used was again the country's leading news website with nearly 13 million monthly uniques in December according to metrics from Ipsos and the New York Post is a gain on course to be profitable and has expanded its positive political influence in these vexed and vexing times.

Robert James Thomson: News.com.au was again the country's leading news website with nearly 13 million monthly unique visitors in December, according to metrics from Ipswich. And the New York Post is again on course to be profitable and has expanded its positive political influence in these vexed and vexing times. With the strong results in Q2 and Q1, we are off to a sterling start in fiscal year 2024, which follows three of the most profitable years for the new News Corp. We can sense that investors are beginning to appreciate keenly the value of our brands and the potential of our portfolio. On behalf of all our investors, we have transformed free cash flow generation, bolstered our balance sheet, initiated a dividend, and are continuing our billion-dollar buyback plan. For that transformative success, I would like to pay tribute to the strategic support of Rupert and Lachlan Murdoch and to our highly engaged directors and to the commitment of our employees around the world. I am now pleased to turn to my talented colleague, Susan Panuccio, who will elaborate on these buoyant results. Thank you, Robert, and good afternoon to everyone.

Speaker Change: With the strong results in Q2 and Q1, we are off to a sterling start in fiscal year 'twenty 'twenty, four which follows the three most profitable years for the Union School we.

Speaker Change: We can sense that investors are beginning to appreciate keenly the value of our brands and the potential of our portfolio.

Speaker Change: On behalf of all our investors, we have transformed free cash flow generation bolstered our balance sheet initiated a dividend and are continuing our $1 billion buyback plan.

Speaker Change: For that transformative success I would like to pay tribute to the strategic support of Rupert and Lachlan Murdoch and two are highly engaged directors and to the commitment of our employees around the world.

Speaker Change: I'm now pleased to turn to my talented colleague Susan Penuche <unk>, who will elaborate on these buoyant results.

Susan Lee Panuccio: Thank you Robert and good afternoon to everyone as Robert mentioned, we had a strong second quarter, resulting in first half year over year increase and it seems like profitability and revenues.

Susan Lee Panuccio: As Robert mentioned, we had a strong second quarter, resulting in first half year-over-year improvements in both profitability and revenues. We continue to transform the company and move towards higher recurring and digital revenues, together with exercising strong capital allocation discipline and balancing reinvestment across the portfolio with ongoing fixed cost reductions. Our second quarter total revenues were $2.6 billion, up 3% compared to the prior year, an increase from the 1% growth delivered in the first quarter. Adjusted revenues grew 2% compared to the prior year.

Susan Lee Panuccio: We continue to transform the company and move towards higher recurring and digital revenues together with exercising strong capital allocation discipline.

Susan Lee Panuccio: Alan Singh reinvestment across the portfolio with ongoing fixed cost reductions.

Susan Lee Panuccio: Our second quarter total revenues were $2 $6 billion up 3% compared to the prior year, an increase from the 1% growth delivered in the first quarter adjusted revenues grew 2% compared to the prior year.

Susan Lee Panuccio: Total segment EBITDA was $473 million for the quarter, up 16% compared to the prior year. This was driven by strong performances across our three key growth pillars, book publishing, digital real estate services, and Dow Jones, which all posted double-digit profit gains. In fact, in the aggregate, those key segments delivered 24% profitability growth this quarter. Our second quarter total segment EBITDA was also the highest in two years.

Susan Lee Panuccio: Total segment EBITDA was $473 million for the quarter up 16% compared to the prior year driven by strong performances across our three key growth pillars book publishing digital real estate services at Dow Jones, which all posted double digit profit gains in fact in the aggregate those key segments to list the 24% profit.

Susan Lee Panuccio: Utility growth this quarter.

Susan Lee Panuccio: Our second quarter total segment EBITA was also the highest achieve adjusted total segment EBITDA grew 14% versus the prior year.

Susan Lee Panuccio: Adjusted total segment EBITDA grew 14% versus the prior year. For the quarter, we reported earnings per share of $0.27 compared to $0.12 in the prior year. Adjusted earnings per share were $0.26 in the quarter compared to $0.14 in the prior year.

Susan Lee Panuccio: For the quarter, we reported earnings per share of <unk> 27 cents compared to 12 cents in the prior year adjusted earnings per share were 26 cents in the quarter compared to 14 cents in the prior year.

Susan Lee Panuccio: Moving on to the results for the individual reporting segments, starting with Digital Real Estate Services, segment revenues were $419 million, up 9%, a notable improvement from the first quarter rate, and a return to revenue growth for the first time since the fourth quarter of fiscal year 2022. On an adjusted basis, segment revenues rose 8%. Segment EBITDA rose an impressive 15% to $147 million due to a higher contribution from the REA group, partially offset by revenue headwinds at MOVE. Adjusted segment EBITDA rose a healthy 16%.

Susan Lee Panuccio: Moving onto the results for the individual reporting segments, starting with digital real estate services.

Susan Lee Panuccio: Segment revenues were $419 million up 9% and notable improvement from the first quarter rate and a return to revenue growth for the first time since the fourth quarter of financial year 2022.

Susan Lee Panuccio: On an adjusted basis segment revenues rose 8%.

Segment, EBITA ryzen impressive, 15% to $147 million due to a higher contribution from the area acreage, partially offset by revenue headwinds that knees adjusted segment EBITDA rose a healthy 16%.

Susan Lee Panuccio: REA had another very strong quarter with revenues rising 22% year-on-year on a reported basis to a quarterly record of $292 million, with minimal impact from foreign exchange. Growth was again primarily driven by residential yield increases, improved growth in national listings, a favorable geographic mix, and customer contract upgrades. Overall, new buy listings rose approximately 8%, with Melbourne up 24% and Sydney up 22%.

Susan Lee Panuccio: <unk> had another very strong quarter with revenues rising 22% year on year on a reported basis to a quarterly record of $292 million with minimal impact from foreign exchange.

Susan Lee Panuccio: Growth was again, primarily driven by residential yield increases increased quoting national listings favorable geographic mix and customer contract upgrades April knee by listings rose approximately 8% with no open up 24% and shaking up 22% plus.

Susan Lee Panuccio: Please refer to REA's earnings release and their conference call, which will commence directly after ours, for more details. Moves revenues of $127 million were down 13% compared to the prior year, with declines moderating from recent quarters. For the quarter, real estate revenues fell 14% driven by lower lead and transaction volumes, reflective of the broader industry trends. Lead volumes fell 7% year over year, with December improving to down just 2%, benefiting from a combination of easier comparisons as well as recent declines in mortgage rates. Average monthly unique users for the quarter were flat compared to the prior year at 66 million. The US housing environment remains tough, with existing home sales hitting 30-year lows.

Susan Lee Panuccio: Please refer to our earnings release and their conference call, which will commence directly after hours from one to each house.

Susan Lee Panuccio: Lease revenues of $127 million were down 13% compared to the prior year with declines moderation from recent quarters for the course are real estate revenues fell 14% driven by lower lead and transaction volumes reflective of the broader industry trends lead volumes fell 7% year over year with December improving to down just cheaper.

Susan Lee Panuccio: Benefiting from the combination of easier comparisons as well as recent declines in mortgage rates.

Susan Lee Panuccio: Average monthly unique users for the quarter were flat compared to the prior year at $66 million.

Susan Lee Panuccio: The U S housing environment remains tough with existing home sales hitting says he lives. Although we are hopeful the market will start to show improvement in the second half given the recent declines in mortgage rates.

Susan Lee Panuccio: Although we are hopeful, the market will start to show improvement in the second half given recent declines in mortgage rates. That said, irrespective of any market considerations, we are determined to strengthen Realtor.com's product and content offering so it's best positioned for success when the housing market improves. To that end, the Realtor.com team is focused on executing several key strategic priorities, which include modernizing the technology platform to help with unifying the customer experience across all platforms, creating unique and scaled data for proprietary content to assist with increased personalization, leveraging News Corp's network in relation to AI initiatives and capturing audience share, and accelerating the diversification of revenues with a greater focus on the sell-side offering. Turning to the subscription video services segment, revenues for the quarter were $470 million, up 2% compared to the prior year.

Susan Lee Panuccio: That said irrespective of any market considerations, we are determined to strengthen realtor com's product and content offerings. So its best position for success when the housing marketing pertains to that and the real estate Dotcom team is focused on executing several key strategic priorities, which include modernizing the technology platform to help with the unifying the customer experience.

Susan Lee Panuccio: Across all platforms, creating unique and scaled data as a proprietary content to assist with increased personalization, leveraging newscorp's networking relation to AI initiatives and capturing audience share and accelerating the diversification of revenues with a greater focus on the sell side offering.

Susan Lee Panuccio: Turning to the subscription video services segment revenues for the quarter were $417 million up 2% compared to the prior year on an adjusted basis revenues rose 3% versus the prior year.

Susan Lee Panuccio: On an adjusted basis, revenues rose 3% versus the prior year. Streaming revenues accounted for 29% of circulation and subscription revenues versus 26% in the prior year. Total closing paid subscribers across the Foxtel Group were over 4.3 million at quarter end, flat with the prior year. Total paid streaming subscribers were 2.8 million, increasing 4% versus the prior year, although declining sequentially due to seasonality at KO, tougher financial conditions caused by the inflationary environment for consumers, and a weaker sports cycle. Foxtel ended the quarter with 1.3 million residential broadcast subscribers, down 9% year-over-year.

Susan Lee Panuccio: Streaming revenues accounted for 29% of circulation and subscription revenues versus 26% in the prior year.

Title closing paid subscribers across our foxtail creep over $4 3 million at quarter end flat with the prior year.

Total paid streaming subscribers with 2.8 million, increasing 4% versus the prior year, although declining sequentially due to seasonality of chaos tougher financial conditions caused by the inflationary environment for consumers and a weaker sports cycle.

Susan Lee Panuccio: <unk> ended the quarter with 1.3 million residential broadcast subscribers down 9% year over year.

Susan Lee Panuccio: Broadcast churn was flat at 12.9% despite the final migration off cable in October, while broadcast ARPU rose 3% to approximately AU$86, helped in part by a price rise for non-Platinum subscribers implemented in July. Segment EBITDA in the quarter of $77 million was down 14% versus the prior year driven by contractual price escalators in Foxtel sports rights agreements and $10 million related to the upcoming launch of Hubble, partially offset by higher revenues and lower technology and marketing costs. Adjusted segment EBITDA declined by 13%.

Susan Lee Panuccio: Cost churn was flat at 12, 9%. Despite the final migration of cable in October while broadcast <unk> rose, 3% to approximately 86 Australian dollars helped in part by a processor is the non platinum subscribers implemented in July.

Susan Lee Panuccio: Segment EBITDA in the quarter of $77 million was down 14% versus the prior year driven by contractual price escalators in Fox sports rights agreements and $10 million related to the upcoming launch of Hubbell, partially offset by higher revenues and lower technology and marketing costs adjusted segment EBITDA declined 13%.

Susan Lee Panuccio: Moving on to Dow Jones. As Robert mentioned, the second quarter results delivered the highest quarterly revenue in segment EBITDA performance since the acquisition of Dow Jones over 15 years ago. Dow Jones delivered revenues of $584 million, up 4% year-over-year, which made Dow Jones the highest segment revenue contributor for the quarter for the first time since it was re-segmented.

Speaker Change: Moving onto that James as Robert mentioned, our second quarter results to live at the highest quarterly revenue and segment EBITDA performance since the acquisition of <unk> changed over 15 years ago.

Speaker Change: Dow Jones delivered revenues of $584 million up 4% year over year, which made Dow Jones, the highest segment revenue contributor for the quarter for the first time since it was re segmented.

Susan Lee Panuccio: Digital revenues accounted for 78% of total revenues this quarter, up 2 percentage points from last year. Circulation and subscription-based revenues represented almost 76% of total revenues, up approximately 2 percentage points from the prior year, reinforcing the stability and recurring nature of the revenue base. On an adjusted basis, revenues grew 3%.

Digital revenues accounted for 78% of total revenues this quarter up two percentage points from last year circulation and subscription base revenues represented almost 76% of total revenues up approximately two percentage points in the prior year reinforcing the stability and recurring nature of the revenue base on an adjusted basis revenues.

Speaker Change: 3%.

Susan Lee Panuccio: We saw very strong growth at PIB, with revenues rising 13% year over year, including 16% growth at risk and compliance to $72 million, and 15% growth at Dow Jones Energy to $62 million. FATTIVA again posted growth benefiting from a new licensing deal. Total PIB retention rates remain very strong at over 90%.

Speaker Change: We saw very strong growth that Pete with revenues rising, 13% year over year, including 16% growth at risk and compliance to $72 million and 15% growth.

Speaker Change: Jones energy to $62 million.

Speaker Change: Keith again posted growth benefiting from a new licensing deal casual peep retention rates remained very strong at over 90%.

Susan Lee Panuccio: We are continuing to review our disclosures with the primary focus on increasing transparency to help the market appropriately value Dow Jones. To that end, we are now providing revenues for both risk and compliance and Dow Jones Energy in the 10Q. Within the Dow Jones consumer business, circulation revenues were flat versus the prior year, with digital-only subscriptions growing 15% year-over-year or by 135,000 sequentially, driven by an increased focus on the Dow Jones bundling offer as they look to better leverage subscription acquisition costs across multiple products, capitalizing on minimal overlap between products, and drive greater engagement. Bundling accounted for over 70% of the incremental digital-only volume growth in Q2. Advertising revenues declined 4% to $126 million, relatively stable with the first quarter rate, although digital returned to year-over-year revenue growth for the first time since the first quarter of fiscal year 23, rising 1% driven by strength in the technology and auto categories. Print declined 11% due to weaknesses in financial services.

Speaker Change: We are continuing to review our disclosures with the primary focus on increasing transparency to help the market appropriately value tile giant to that end. We are now providing revenues for both risk and compliance and Dow Jones energy in the 10-Q.

Speaker Change: Within the Dow Jones consumer business circulation revenues were flat versus the prior year with digital only subscriptions growing 15% year over year or by 135000 sequentially driven by an increased focus on the Dow Jones bundling offer as they look to better leverage subscription acquisition cost across multiple products capitalize on minimal overlap between <unk>.

Speaker Change: Products and drive greater engagement.

Speaker Change: <unk> accounted for over 70% of the incremental digital only volume growth in quarter two.

Speaker Change: Advertising revenues declined 4% to $126 million relatively stable with the first quarter range, Although digital returned to year over year revenue growth for the first time since the first quarter financial year, 'twenty, three rising 1% driven by strength in the technology and auto categories print declined 11% due to weaknesses in financial.

Speaker Change: This is digital represented 62% of advertising revenues up 59% last year.

Speaker Change: Dow Jones segment EBITDA for the quarter grew 17% to $163 million and was the largest segment EBITDA contributor with margins, increasing 320 basis points to 27, 9% driven by the strong data pay performance, which remains on track to be the largest contributor to attach and profitability in fiscal 2024.

Susan Lee Panuccio: Digital represented 62% of advertising revenues, up 59% last year. Dow Jones segment EBITDA for the quarter grew 17% to $163 million and was the largest segment EBITDA contributor, with margins improving 320 basis points to 27.9%, driven by the strong B2B performance, which remains on track to be the largest contributor to Dow Jones profitability in fiscal 2024. Costs declined about 1%, driven by headcount reductions and lower newsprint production and distribution costs, in addition to a phased out of sales and marketing spending.

Speaker Change: Cost decline about 1% driven by head count reductions and lower newsprint production and distribution costs. In addition to phasing of sales and marketing expenditure.

Speaker Change: At the publishing financial performance again meaningfully exceeded our expectations, particularly in profitability revenues were $550 million up 4%, while segment EBITDA increased 67% to $85 million compared to the prior year margins increased by almost 600 basis points to 15, 5% the strong.

Speaker Change: Performance this quarter benefited from the success of some key frontlist titles as Robert mentioned, and so increasing impact with sales, including a notable increase from Christian publishing.

Susan Lee Panuccio: At Book Publishing, financial performance again meaningfully exceeded our expectations, particularly in profitability. Revenues were $550 million, up 4%, while segment EBITDA improved 67% to $85 million compared to the prior year. Margins increased by almost 600 basis points to 15.5%.

Speaker Change: Return rates are gaining praise materially due to better sell through compared to last year, while inventory levels appear to have normalized across our distribution network.

Speaker Change: Inflationary cost moderated with lower manufacturing costs helped by product mix and lower freight and distribution costs this quarter.

Speaker Change: The backlist contributed 60% of revenues up from 57% last year, while digital sales rose, 15% this quarter and accounted for 21% of consumer sales.

Susan Lee Panuccio: The strong performance this quarter benefited from the success of some key frontlist titles, as Robert mentioned, and saw improvement in backlist sales, including a notable increase from Christian Publishing. Return rates again improved materially due to better sell-through compared to last year, while inventory levels appear to have normalized across our distribution network. Inflationary costs moderated with lower manufacturing costs helped by product mix and lower freight and distribution costs this quarter.

Speaker Change: Downloadable audio accounted for nearly 50% of digital sales a record high and we are pleased with the early positive signs from our partnership with Spotify, which generated incremental digital revenues and EBITDA this quarter.

Speaker Change: As why is that grabs Spotify is a usage based model not a pool model on an adjusted basis revenues gained 2% and segment EBITDA rose 65%.

Turning to news media performance in this segment was more challenged.

Susan Lee Panuccio: The backlist contributed 60% of revenues, up from 57% last year, while digital sales rose 15% this quarter and accounted for 21% of consumer sales. Downloadable audio accounted for nearly 50% of digital sales, a record high, and we are pleased with the early positive signs from our partnership with Spotify, which generated incremental digital revenues and EBITDA this quarter. As way of background, Spotify is a usage-based model, not a pooled model. On an adjusted basis, revenues gained 2%, and segment EBITDA rose 65%. Turning to news media, performance in the segment was more challenged. Revenues were $563 million, down 3% versus the prior year, while adjusted revenues declined 5%. Advertising declined 9% and was down 11% in constant currency, while circulation and subscription rose 5% and were up 2% in constant currency, benefiting from cover price increases.

Speaker Change: And use for $563 million down 3% versus the prior year, while adjusted revenues declined 5%.

Speaker Change: Advertising declined 9% and was down 11% in constant currency, while circulation and subscription rose, 5% and was up 2% in constant currency benefiting from copper price increases.

Speaker Change: Advertising remained particularly challenged with digital advertising trends again negatively impacted by the lower traffic at several masked hits related to changes in algorithms at the large platforms that said as Robert noted Encouragingly, we are seeing some recovery in recent weeks, particularly at the Sun in the U S.

Speaker Change: Segment, EBITDA was $52 million declined $7 million, which was due to the lower revenue, partly offset by lower print volume and newsprint expense and lower spend at top T V.

Speaker Change: Adjusted segment EBITDA declined 15%.

Speaker Change: As for the outlook similar to our comments last quarter. It is challenging to forecast in the short term, albeit economic conditions vary across markets looking at each of our segments at digital real estate services, Australia residential knee by listings for January grew 12%. Please refer to Rei for more specific outlook commentary Aetna.

Susan Lee Panuccio: Advertising remained particularly challenged, with digital advertising trends again negatively impacted by lower traffic at several mastheads related to changes in algorithms at the large platforms. That said, as Robert noted, we are, encouragingly, seeing some recovery in recent weeks, particularly at the Sun in the US. Segment EBITDA of $52 million declined $7 million, which was due to lower revenue partly offset by lower print volume and newsprint expense and lower spend at TalkTV. Adjusted segment EBITDA declined 15%.

Speaker Change: We hope to see continued improvements in lead volumes with January up 1% year over year, given recent declines in borrowing costs, albeit off a low prior year comparisons as we mentioned last quarter, we are expecting some reinvestment in marketing and product development in the second half increasing from depressed levels last year, which will be partially offset.

Speaker Change: It by cost reductions elsewhere.

Speaker Change: In subscription video services as mentioned last quarter, we continue to expect modestly higher expenses for the full year ongoing inflationary pressures fewer new releases across entertainment and to each of the rashes enact a strike and a weak summer sports schedule has created some softness in streaming revenues, which may impact full year profitability in local currency.

Susan Lee Panuccio: As for the outlook, similar to our comments last quarter, it is challenging to forecast in the short term, albeit economic conditions vary across markets. Looking at each of our segments, at Digital Real Estate Services, Australian residential new buy listings for January grew 12%. Please refer to REA for more specific outlook commentary. At MOVE, we hope to see continued improvements in lead volumes, with January up 1% year over year, given recent declines in borrowing costs, albeit off low prior year comparisons. As we mentioned last quarter, we are expecting some reinvestment in marketing and product development in the second half, increasing from depressed levels last year, which will be partially offset by cost reductions elsewhere. For subscription video services, as mentioned last quarter, we continue to expect modestly higher expenses for the full year. Ongoing inflationary pressures, fewer new releases across entertainment due to the writers and actors strike, and a weaker summer sports schedule have created some softness in streaming revenues, which may impact full-year profitability in local currency.

Speaker Change: <unk>.

Speaker Change: At Dow Jones, we expect strong revenue and profitability performance underpinned by the transformation of our database offerings and as mentioned previously continue to expect modestly higher overall expenses for the full year.

Speaker Change: At book publishing overall industry revenue trends remain relatively stable and we are encouraged by the strength in the downloadable audio we continue to expect margins to improve versus the prior year.

Speaker Change: At news media advertising revenue trends remain challenging, particularly in Australia, and we will continue to focus on ongoing cost efficiencies.

Speaker Change: Finally, given the current spot rate for the Australian dollar versus the U S. Dollar we do expect some negative translation in the third quarter with that let me hand, it over to the operator for Q&A.

Speaker Change: Thank you we will now start the Q&A session. Please limit your questions to one per participant.

Speaker Change: If you have joined via the zoom application. Please use the raise hand functionality to ask question.

Speaker Change: You have joined via the audio line. Please press star nine questions will be answered in the order. They are received we will now pause a moment to assemble the queue.

Susan Lee Panuccio: At Dow Jones, we expect strong revenue and profitability performance, underpinned by the transformation of our B2B offerings and, as mentioned previously, continue to expect modestly higher overall expenses for the full year. At Book Publishing, overall industry revenue trends remain relatively stable, and we are encouraged by the strength of downloadable audio. We continue to expect margins to improve versus the prior year. At News Media, advertising revenue trends remain challenging, particularly in Australia, and we will continue to focus on ongoing cost efficiency. Finally, given the current spot rate for the Australian dollar versus the US dollar, we do expect some negative translation in the third quarter.

Speaker Change: Our first question comes from David Karnofsky from JP Morgan.

David Karnofsky: Hi, Thanks for taking the question.

David Karnofsky: I guess, what is the AI topic Robert.

David Karnofsky: To deliver these do you expect to be a core content provider for Gen AI companies.

David Karnofsky: Maybe you can speak a bit to current negotiations what are the key sticking points are key priorities for you or even the red lines for news Corp. As you engage on this.

Yes, David obviously, the these are confidential negotiations and so I can't go into too much detail I mean, it is fair to say that we've been leading the intellectual debate among media companies on AI.

Susan Lee Panuccio: With that, let me hand it over to the operator for Q&A. Thank you. We will now start the Q&A session. Please submit your questions to one per participant. If you have joined via the zoom application, please use the raise hand functionality to ask a question. If you have joined via the audio line, please press star nine.

David Karnofsky: Also fair to say that we're probably leading the commercial discussions.

David Karnofsky: I mean 17 years ago, when prestige craving media executives with Sashaying with Silicon Valley, we were raising doubts doubts about provenance.

David Karnofsky: But also that the biofuel impact on vulnerable young people of the smartest engineers on the planet dredging compulsive addictive experiences.

Operator: Questions will be answered in the order they are requested. We will now pause for a moment to assemble the queue. Our first question comes from David Karnovsky from J.P. Morgan. Hi, thanks for taking the question. I guess I'll ask the AI topic.

David Karnofsky: Anyway, we're certainly not naive as well about the potentially positive and negative impacts of AI on our journalism creativity.

Robert James Thomson: Robert, you noted in the release that you expect to be a core content provider for Gen AI companies. Maybe you can speak a bit about current negotiations. What are the key sticking points, key priorities for you, or, you know, even the red lines for News Corp as you engage in this?

David Karnofsky: We've had almost two decades of distribution dominating creation and almost 60% or so of journalists have lost jobs in the U S.

Robert James Thomson: Yes, David, obviously these are confidential negotiations, and so I can't go into too much detail. I mean, it is fair to say that we've been leading the intellectual debate among media companies on AI, and it's also fair to say that we're probably leading the commercial debate. I mean, 17 years ago, when prestige-craving media executives were sashaying with Silicon Valley, we were raising doubts, doubts about provenance, but also about the baleful impact on vulnerable young people, the smartest engineers on the planet, creating comp Anyway, we're certainly not naive as well about the potentially positive and negative impacts of AI on our journalism creation. We've had almost two decades of distribution-dominating creation, and almost 60% or so of journalists have lost jobs in the U.S. Candidly, unfortunately, a certain percentage of that is down to journalistic pomposity and price, not Gordians, www.newscorp.com. But AI is a hyper-effective form of, or Gen AI is a hyper-effective, a derivative distribution. It's retrospective, not prospective, and thoughtful AI companies understand that, and so that's why, on this occasion, I would like to highlight the thoughtfulness of Sam Altman. Thoughtful people do understand that counterfeiting is not creating.

David Karnofsky: Unfortunately, a certain percentage of that is down to journalistic pomposity and price consciousness.

David Karnofsky: Consciousness and relevance consciousness.

David Karnofsky: <unk> is a hyper effective form of or Gen. II is a hyper effective form of.

David Karnofsky: Derivative distribution, it's retrospective or prospective.

David Karnofsky: And the thoughtful II companies understand that fact.

David Karnofsky: And so that's why on this occasion I would like to highlight the thoughtfulness of Sam element thoughtful people do understand that counterfeiting is not creating.

David Karnofsky: And crushing crucially in this exceedingly erratic era.

David Karnofsky: We have deep facts not deep fakes.

Speaker Change: Thank you David.

Speaker Change: Leila will take our next question please.

Leila: Our next question comes from Andrew Correct, Andrew Rykowski from Evans and partners.

Andrew Levy: Hi, Robert Hi, Susan.

Andrew Levy: Maybe if I can pick up on the Genuity II question as well.

Andrew Levy: How I appreciate the sense of how much you can say, but how do you think about the potential payments, which could which could come for the value of your content relative to what you currently receiving from the digital platforms is that a similar sort of quantum could it be.

Andrew Levy: Dave and a greater quantum over time at least on a relative basis I'd be interested in how you're thinking about it and and.

Robert James Thomson: And crucially, in this exceedingly erratic era, we have deep facts, not deep faith. Thank you, David. Layla, we'll take our next question, please. Our next question comes from Entcho Raykovski from Evans and Partners. Hi Robert, hi Susan.

Andrew Levy: Longer term do you expect the dice payments from the digital platforms will continue to come through thank you.

Dave: And so I'm, sorry to be evasive, but I simply cant comment on the contents in our negotiations, but I can say there.

Dave: On stage and we are dealing with with willing partners.

Robert James Thomson: Maybe I can pick up on the generative AI question as well. I appreciate there's only so much you can say, but how do you think about the potential payments which could come for the value of your content relative to what you're currently receiving from digital platforms? Is it a similar sort of quantum?

Speaker Change: Thank you and Joe Leila will take our next question. Please.

Speaker Change: The next question comes from Kane Hannan from Goldman Sachs.

Kane Hannan: Good morning, guys. Thank you, maybe just Dow Jones.

Kane Hannan: We're down about $3 million in the quarter, we just talk a bit more about the Dow Jones called space or whether we can extrapolate that sort of performance going forward and maybe the follow on to that just the professional information services within Dow Jones.

Robert James Thomson: Could it be even a greater quantum over time? At least on a relative basis, I'd be interested in how you think about it, and longer term, do you expect that those payments from the digital platforms will continue to come through? Thank you. Entcho, I'm sorry to be evasive, but I simply can't comment on the content and negotiations, but I can say they're at an advanced stage and we are dealing with willing partners. Thank you, Entcho.

Kane Hannan: We appreciate the extra disclosure did that business see margin expansion in the quarter or is the strong margin expansion. The delta is a real more of a mix and cost out and the other businesses.

Speaker Change: Hi, Ken welcome back look just in relation to the cost we did see a pretty good cost performance for the first half of that James and I think like all our businesses. They are pretty tough focus constantly have a look at transformational opportunities within the business and they certainly participated in the 5% head count reduction.

Operator: Laila, we'll take our next question, please. The next question comes from Kane Hannan from Goldman Sachs. Good morning, guys.

Operator: Thank you. Maybe just Dow Jones. I think the costs were down about $3 million in the quarter.

Speaker Change: And they are getting the benefit of that but like all the businesses. We do watch it investing and so we do see variable costs going out.

Operator: We should talk a bit more about the Dow Jones cost base, you know, whether we can extrapolate that sort of performance going forward. And maybe to follow on to that, just the professional information services within Dow Jones. I mean, obviously, I appreciate the extra disclosure.

Speaker Change: Skiles.

Speaker Change: Had inflationary cost in relation to head count and will continue to invest in head count.

Speaker Change: And that business in the second half of the year, we would expect to see some phasing in additional costs coming through some marketing we do tend to have seasonally higher.

Operator: Did that business see margin expansion in the quarter? Or is the strong margin expansion for Dow Jones overall, you know, more of a mix and cost out in the other business? Um, Kane. Welcome back.

Speaker Change: Second half and we're doing the first Thomson so that typically warrants an additional marketing costs.

Speaker Change: So that's sort of in relation to the cost base and then in relation to pay them and we don't give out the margin.

Speaker Change: That the PD margins getting crews for.

Speaker Change: For the quarter, which was really pleasing to see as they continue to scale that business and as we said in our prepared remarks now for the full year. We are continuing to expect to see the majority of that profit coming from each segment.

Operator: Just in relation to the culture, we did see the first half of Dow Jones, and I think, like all our businesses, they are...they're getting the benefit of the doubt.

Speaker Change: And just to supplement Susan's answer obviously people is a priority for Dow Jones and news cool and we are providing more visibility over all about Dow Jones, because it's such a positive story and frankly, the more you see the mowry relight.

Operator: But like all the plans we had in place, and the second half of the year, we would... Page, and the team. We do. So that's...

Robert James Thomson: So that's sort of in relation to the cost base. And then, in relation to PIVM, we don't give out the margin for the quarter, as we said in our prepared remarks. And just to supplement Susan's answer, obviously PIB is a priority for Dow Jones and for News Corp, and we are providing more visibility overall about Dow Jones because it's such a positive story and, frankly, the more you see, the more you'll like. Overall, the margin at Dow Jones has risen from 24.7% a year ago to 27.9%, and now that we're lapping the purchases of Opus and CMA, We have grouped them into Dow Jones Energy, where revenues expanded by 15%. And it is also, though, worth noting the results of the always burgeoning risk and compliance segment, where revenues rose 16%. In short, these are high-margin, recurring businesses providing essential services and thus have renewal rates well north of 90%.

Speaker Change: Overall the margin at Dow Jones has risen from 24, 7% a year ago to 27, 9% and now that we're lapping the purchases of Opus and CMA. The strong growth rates are clear with these companies, which we have grouped into Dow Jones energy, where revenues expanded by 16% and it is also worth noting.

Speaker Change: The results of the always burgeoning risk and compliance segment, where revenues rose 16% in.

Speaker Change: In short these are high margin recurring businesses, providing essential services, and thus have renewal rights well north of 90%.

Speaker Change: Thank you very much Layla, we will take our next question. Please.

Speaker Change: Our next question comes from Craig Huber from Huber Research.

Speaker Change: Yeah.

Craig Anthony Huber: Great. Thank you I wanted to ask.

Craig Anthony Huber: Portfolio review and simplification announcement that you mentioned three months ago. When you briefly touched on it today can you just give us a further update on I'm just curious on the timing of this I mean I personally didn't expect the major announcement within just the first three months, but also the flip side I don't wouldn't expect it to take another six plus months from this stage going forward. If you could just give investors.

Operator: Thank you very much. Leila, we'll take our next question, please. Our next question comes from Craig Huber from Huber Research. Great, thank you.

Craig Anthony Huber: We will send to the timing there I mean I assume you guys did an awful lot of work.

Robert James Thomson: I wanted to ask about the portfolio review and simplification announcement that you mentioned three months ago, and you briefly touched on it today. Can you just give us a further update? I'm just curious about the timing of this. I mean, personally, I didn't expect a major announcement within just this first three months, but also, on the flip side, I don't want to expect it to take another six plus months from this stage going forward.

Craig Anthony Huber: And the scenes before even talked about it three months ago on your conference call you have truly done some I'm sure. Some of these last three months just give us a little sense of the timing of when we might get an announcement here. Please thank you.

Speaker Change: Craig your presumption about progression is not.

Speaker Change: No. If you will conceived but this being a rather sophisticated audience, one which understands the nuances of phrases in the subtleties of the SEC you can take the words I used in my statement as purposefully delivered there was clearly much introspection not casual not peripheral but significant series introspection.

Robert James Thomson: Can you just give investors a little sense of the timing there? I mean, I assume you guys did an awful lot of work behind the scenes before you even talked about it three months ago in your conference call. You've surely done some, I'm sure, in these last three months.

Robert James Thomson: Just give us a little sense of the timing when we might get an announcement. Thank you. Craig, your presumption about progression is not ill-conceived, but this being a rather sophisticated audience, one which understands the nuances of phrases and the subtleties of the SEC, you can take the words I used in my statement as purposefully delivered. There is clearly much introspection, not casual, not peripheral. Significant Series.

About structure.

Speaker Change: In its functional not emotional.

And the prevailing truth is that we have created options for our shareholders and that's attributed to all the news Corp, with the active support of an enlightened board and leadership from Rupert and Lachlan and the efforts of our employees around the world.

Speaker Change: Let's not forget.

Speaker Change: Scott It investment bankers with decidedly downgrade at the time of the split a decade ago and now however, the discussion is how to get full value from how to fully monetize a precious prestigious portfolio that has an obvious growth trajectory that is indeed, not an evolution or revolution.

Robert James Thomson: And the prevailing truth is that we have created options for our shareholders, and that's a tribute to all that, with the active support of an enlightened board, leadership from Rivet and Lachlan, and the efforts of our employees around the world. Let us not forget that misguided investment bankers were decidedly downbeat at the time of the split a decade ago. And now, however, the discussion is how to get full value from, how to fully monetize, a precious, prestigious portfolio that has an obvious growth trajectory. That is indeed not an evolution but a revolution.

Craig Anthony Huber: Craig Laila, we will take our next question. Please.

Craig Anthony Huber: Our next question comes from Lucy Huang from UBS.

Lucy Huang: Good morning, Robin Susan my questions on P IV as well I'm, giving away kind of getting through the end of the integration of pest and CMA just wondering strategically how you're thinking about the growth in this business and are there any other data sets that you would be looking to maybe build out or acquire over time.

Operator: Thank you, Craig. Laila, we'll take our next question, please. Our next question comes from Lucy Huang from UBS. Good morning, Rob and Susan. My question's on PIB as well. Given we're kind of getting through the end of the integration of Opus and CMA, just wondering strategically how you're thinking about growth in the business, and are there any other data sets that you would be looking to maybe build out or acquire over time? Like, are there intentions or, I guess, capabilities you'd like to plug with PIB?

Lucy Huang: Are there any intention, though I guess capabilities, you'll like to park them, we pay Avi.

Lucy Huang: Let's see obviously, where we're pleased with the progress of the <unk>.

Lucy Huang: Business and as I said, you can see the.

Lucy Huang: Overall increase in margin at Dow Jones.

Lucy Huang: That is to a large extent.

Lucy Huang: Due to the success of the.

Robert James Thomson: Lucy, obviously, we're pleased with the progress of the PIB business, and as I said, you can see the overall increase in margin at Dow Jones and that is, to a large extent, I can't go into any more details about what the plans are, but needless to say, PIB is core to Dow Jones and it's core to Newcastle. And Lucy, what I can say is that, you know, the thing that's great... The Bulletproof Executive 2013, So I think that. Thank you, Lucy.

Lucy Huang: Businesses I can't go into any more details about what.

Lucy Huang: Plans are but.

Lucy Huang: Needless to say.

Lucy Huang: Is quoted Dow Jones, and its quarter New school.

Lucy Huang: Let's see what I can say is that you.

Lucy Huang: The thing that's great about paid and the energy businesses is that the new products can leverage the existing datasets that we have for the pricing reporting analytics and newsletters and they can draw off a lot of the core data that we have so I think that's fantastic and I think Robert as mentioned in previous quarters.

Lucy Huang: He is like renewables that are coming in that we really think that could provide an exciting opportunity for us.

Speaker Change: Thank you Lucy Laila, we'll take our next question. Please.

Operator: Laila will take our next question. Our next question comes from Brian Han from Morningstar. Susan, I noticed the second quarter PCP growth in books EBITDA is exactly the same as the first quarter PCP growth, both exactly, I think, two-thirds up on the prior period. Is there some sort of a contracted step up in earnings for books, or is that just pure coincidence?

Speaker Change: Our next question comes from Brian Han from Morningstar.

Speaker Change: Yeah.

Brian Han: Susan I noticed the second quarter P. C. P growth in books EBITDA is exactly the same as the first quarter P. C. P close.

Brian Han: But it's exactly I think two thirds up on prior periods.

Brian Han: Is there some sort of a contracted step up in earnings for books or is that just pure coincidence.

Susan Lee Panuccio: I'd like to think there would be at that level, but no, I think it's just... We agree, as we sort of said in the remarks. COVID, so the returns have settled. I'm in the mock bit, and it's also partly because of the great work that the Harpers have done in relation to their coffee. They also took...

Speaker Change: Like to think they would be at that level, but I.

Susan Lee Panuccio: No I think it's just a coincidence as we sort of said in the in the remarks.

Susan Lee Panuccio: Publishing segment has continued to.

Susan Lee Panuccio: <unk> exceeded our expectations and it's partly because we've had a return to more stability in the revenue post COVID-19. So the returns are settled down and the market has settled down a little bit and it's also partly because of the great with the Harpercollins team has done in relation to the cost base in the face of some pretty challenging conditions last year. They also took on the.

Susan Lee Panuccio: So a combination of all of that has really helped. Look, I think across the full year, we're still expecting margins. ,,, Thank you, Brian. Leila, we'll take our next question. Our next question comes from Darren Leung from Macquarie. Hi guys, thanks for the opportunity. I just wanted to ask a bit about the cost out program. Can you give us a feel as to how much has been completed so far this fiscal year on the previous $160 million number? And just a feel for, you know, do you expect more of it to be weighted in the third quarter or fourth quarter?

Susan Lee Panuccio: But you need to push through some price rises on books. So combination of all of that has really helped with putting.

Speaker Change: Hey, good results for the first half book I think across the full year, we're still expecting margins to be sort of in line.

Speaker Change: At double digits.

Speaker Change: What's the improvement from the prior year.

Speaker Change: But probably not to the levels that we're seeing in the first half.

Speaker Change: Thank you Brian Layla, we will take our next question. Please.

Speaker Change: Our next question comes from Darren Leung from Macquarie.

Hi, guys. Thanks for the opportunity.

Darren Leung: Wanted to ask a bit about the cost out program can you give us a feel as to how much has been completed so far this fiscal year.

Darren Leung: Previous $160 million number and just a feel for that do.

Darren Leung: Do you expect more of it to be why didn't the call of our fourth quarter.

Susan Lee Panuccio: Or maybe another way to answer the question is, you know, what divisions should we expect to see a lot of this cost out come from, please? Yeah, look, we're, it's pleasing to say that actually we, we quoted a Thank you, in relation to that coughed-out program, and we are, and actually from a run. We have said..., statement. News Corp.

Darren Leung: Maybe another way to ask that question is what divisions should we expect to see a lot of this cost that come from please.

Speaker Change: Yeah look we it's pleasing to say that actually we equation I think 160 million number.

In relation to that cost out program and we are going to exceed that number and actually from a run rate perspective, we're pretty much there already.

Speaker Change: We have said in previous statements. So that's the gross cost savings and we do have re investments across our businesses as you can see within <unk>.

Susan Lee Panuccio: Thank you very much, and John Foxhill with the Hubble launch. And so that is the gross cost savings. What I would say is, notwithstanding that, we are always... So that will affect our workflow and our schedule. Great. And Darren, I'd just like to supplement Susan's point that we are not going to let these excellent results in any way induce complacency in the company. All the teams are extremely talented.

Speaker Change: I'm sorry.

Speaker Change: Hum.

Speaker Change: The Hubble launch and so that is the gross cost savings what I would say is notwithstanding that we are always looking at all sizes across all businesses and so that was the timing just the head count reductions were constantly looking at our cost base and our workflows and our efficiencies and we do continue to drive greater savings from that which helps us reinvest in these businesses.

Speaker Change: And John I'd, just like to supplement Susan's point, we are not going to let these excellent results in anyway and juice complacency in the company.

Speaker Change: All of the teams are extremely cost conscious and.

Robert James Thomson: And we're already seeing very interesting trends in the ability of AI to reduce costs related to technology spend, to the creation of code, to the cultivation of code. And so not only are we going to be pursuing conventional costs, but we're looking ahead and trying to make the most of it. Thank you, Darren. Leila, we'll take our next question. As a reminder, if you have a question and have joined via the Zoom application, please use the raise hand feature at the bottom of the Zoom application. When you join the audio line, star nine will activate the raise hand.

And we already are seeing.

Speaker Change: Very interesting trends and the ability of AI to reduce costs related to technology spend to the creation of code to the cultivation of code and so not only are we going to be pursuing a conventional cost looking ahead and trying to make the most of new developments.

Speaker Change: Thank you Darin Laila, we will take our next question. Please.

Speaker Change: As a reminder, if you have a question and have joined via the zoom application. Please use the raise hand feature at the bottom messaging application and he joined the audio line Star nine will activate the raise hand.

Speaker Change: Okay.

Speaker Change: Okay.

Operator: At this time, we have no further questions. I'll now hand over to Michael Florin for closing remarks. Thank you, Leila, and thank you all for participating. Have a wonderful day, and we will talk to you soon. Take care.

Speaker Change: At this time, we have no further questions I'll now hand over to Michael Florin for closing remarks.

Michael Florin: Thank you Laila and thank you all for participating have a wonderful day and we will talk to you soon take care.