Q1 2025 News Corp Earnings Call
<unk> and head of Investor Relations. Please go ahead.
Speaker Change: Thank you very much operator, Hello, everyone and welcome to news Corp's fiscal first quarter 2025 earnings call. We issued our earnings press release about 30 minutes ago, and it's now posted on our website at Newscorp Dot com.
Speaker Change: On the call today are Robert Thomson, Chief Executive and Susan Penuche, Oh, Chief Financial Officer, we wont be with some prepared remarks, and there'll be happy to take questions from the investment community.
Speaker Change: This call May include certain forward looking information with respect to news corp's business and strategy.
Speaker Change: 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.
Speaker Change: 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 release for the applicable period.
It's posted on our website with that I'll pass over to Robert Thomson personal opening comments.
Robert Thomson: Thank you Mike There is no doubt we have begun fiscal 'twenty twenty-five robustly with record first quarter revenue and record first quarter profitability.
Robert Thomson: Revenue rose, 3% year over year to $2.58 billion, while profitability surged, 14% to $415 million of.
Robert Thomson: Profit margin rose from 14, 6% a year ago to 16, 1% and recurring circulation and subscription revenues continued to expand as our reliance on the sometimes volatile advertising market has declined markedly.
Robert Thomson: Net income jumped from $58 million last year to $144 million and our EPS was <unk> 21 cents compared to five cents in the same quarter last year.
Robert Thomson: That we have achieved these record first quarter results in macro conditions, which were far from auspicious tells much about the successful transformation of newschool over the past decade.
Meanwhile, the just completed election has highlighted the importance of trusted journalism in a medium mail stream in which some journalists routinely mistake virtue signaling for virtue artificial intelligence harvests and recycles informational infelicity and so it is critical that journalists inputs have in.
Robert Thomson: Integrity, which is why our partnership with open I I is so crucial and why we will certainly seek to challenge AI companies misusing and abusing our trusted journalism.
We have indicated in the past that we would prefer to woo rather than sue artificial intelligence companies, Hence the alliance with open II, but we have reached a point where litigation is also essential Dow Jones and the New York Post have started proceedings against the perplexing perplexity, which is selling products based on.
Robert Thomson: Our journalism and we are diligently preparing for further action against other companies that have ingest. It our archives and are synthesizing our intellectual property, we hope that litigation will not be necessary, but we intend to defend vigorously our rights and our journalism.
Robert Thomson: This matter is an imperative for our society and for our shareholders. We are also a puny the blyton biases of AD agencies and AD associations, which we believe are boycotting certain media properties solely on the basis of personal political prejudices that is detrimental to companies, which advertise and obviously enough.
Robert Thomson: To the shareholders of those companies, which are being denied the opportunity to optimize audience reach the AD heavens are certainly not in equilibrium.
Robert Thomson: As for the structure of our company, we continue to examine changes to maximize our overall value for shareholders.
It is true to say we are in active discussions over the future of Fox to them and we believe all who have studied the worth of our individual assets and our current share price can easily see that that price does not reflect the collective value of our businesses.
Robert Thomson: In our view a clear gap remains despite the approximately 38% increase in our share price over the past year.
Robert Thomson: The most glaring discrepancy is how the market has assessed the value of our AI in our portfolio.
By the way it is really worth highlighting the prescient of Lachlan Murdoch and his early investment of less than 2 million U S dollars in cash, which gave us a strategic stake that has become a 61% share in a company with 31 billion Australian dollars based on recent trading and has created immense value for all our investors.
Robert Thomson: If you need me to do the math, 61% of 31 billion Australian dollars is approximately $12 5 billion in U S dollars given that our market cap is roughly 17 billion U S dollars that means the Dow Jones, including the Wall Street Journal in the lucrative B to B businesses, plus Harper Collins, plus realtor plus there Tom.
EPS was $0.21 compared to $0.05 in the same quarter last year.
Robert Thomson: <unk> of London, and the Sun, plus our UK Radio network, plus Arris, writing papers, plus Fox tail and a few other companies are apparently perceived to be worth less than $5 billion, which we believe simply defies investing or mathematical logic.
Robert Thomson: Now, let's examine each sector's performance and the company's actual value more closely.
Robert Thomson: In digital real estate, we had a particularly strong quarter at Rei in Australia, where listings nationally rose 7% in the quarter and have continued to increase at a healthy level through October we expect that positive momentum will be reflected in second quarter earnings.
There was a certain amount of excitement in recent weeks as Ari I submitted a thoroughly reasonable bid to acquire the U K market leader right move, but we applaud the rel leadership teams financial rectitude, instead, firstly refusing to overpay for the asset.
Robert Thomson: That was the right move board did not engage constructively was disappointing, but we are absolutely confident in the potential of <unk> and that potential was obvious in the excellent results the company announced today.
A new school, we have made several important acquisitions in recent years and book publishing and in particular to expand the professional information business at Dow Jones, but these acquisitions have been knowing investment rather reasonable prices and the efficacy of that disciplined investment strategy is reflected in a buoyant earnings.
Which are being denied the opportunity to optimize audience reach.
Robert Thomson: In the first quarter digital real estate revenue overall increased by 13% while profitability rose, 15%. This double digit growth driven by Rei, reaching all time record quarterly revenue. Thanks to strong listing volume and yield and continued growth at ARIA India.
Heavens us certainly not in equilibrium.
As for the structure of our company, we continue to examine changes to maximize our overall value for shareholders. It is true to say we are in active discussions over the future of Fox deal and we believe all who have studied the worth of our individual assets and our current share price can easily see that that price does not refer.
Robert Thomson: We believe rei's potential is far from fully realized as the company's expansion into financial services remains in an early build burgeoning stage and the development of premium products for agents and for families seeking to buy or sell a property continues apace.
Select the collective value of our businesses.
In our view a clear gap remains despite the approximately 38% increase in our share price over the past year.
Robert Thomson: In the U S. The property market remains challenged with Punitively high mortgage rates, which have had a nocuous impact on sales, but this should be a relatively temporary trend and we fully expect to rebound as those rates decline.
The most glaring discrepancy is how the market has assessed the value of Ari I in our portfolio.
By the way it is really worth highlighting the precedence of Lachlan Murdoch and his early investment of less than 2 million U S dollars in cash, which gave us a strategic stake that has become a 61% share in a company with 31 billion Australian dollars based on recent trading and has created immense value for all our investors.
Robert Thomson: Things have increased year over year with a more than 30% increase in active listings in September, but we are seeing particularly low sales of existing homes, which impacted lead volume.
Robert Thomson: Our team is positioning the company for the rebound with product enhancements such as dynamic mapping the bolstering of our tech stack and building the brand Halo reflected in a 2% increase in unique users. Despite the softness in property cycles.
If you need me to do the math, 61% of 31 billion Australian dollars is approximately $12 5 billion in U S dollars given that our market cap is roughly 17 billion U S dollars that means the Dow Jones, including the Wall Street Journal in the lucrative B to B businesses, plus Harper Collins bus realtor plus the times.
Robert Thomson: As with Rei Realtor Dot com continues to diversify including expanded sell side and your construction offerings and a rental partnership with Zillow and revenues at each of those adjacencies expanded.
Of London, and the Sun plus our UK Radio network, plus Arris, Ryan papers, plus Fox style and a few other companies are apparently perceived to be worth less than $5 billion, which we believe simply defies investing or mathematical logic.
At Dow Jones, which has more than doubled in profitability since re segmentation four years ago, and which had a strong fiscal 2020 for a b to b data and information services businesses continued to prosper in Q1, the professional information business expanded revenues overall by 8% with 16%.
Now, let's examine each sector's performance and the company's actual value more closely.
In digital real estate, we had a particularly strong quarter at Rei in Australia, where listings nationally rose 7% in the quarter and have continued to increase at a healthy level through October we expect that positive momentum will be reflected in second quarter earnings.
Gross at risk and compliance and an 11% increase at Dow Jones energy.
Robert Thomson: For context, our risk and compliance revenues over the last five years from fiscal 2019 to fiscal 2024 have more than doubled representing 18% annual compound growth with global instability and increasing regulatory vigilance. There is no sentient law abiding company that does not.
There was a certain amount of excitement in recent weeks as our EIA submitted a thoroughly reasonable bid to acquire the U K market leader Rightmove, but we applaud the Oreo leadership teams the natural rectitude, instead, fastly refusing to overpay for the asset.
Robert Thomson: Want to minimize risk and maximize compliance at Dow Jones energy. We are excited by the recent acquisition of a two or a leader in AI powered technology used to optimize fuel pricing strategies, which will complement opus as pricing solutions on the news side total Dow Jones digital only subscriptions grew 50.
That was the right move board did not engage constructively was disappointing, but we are absolutely confident in the potential of <unk> and that potential was obvious in the excellent results the company announced today.
A new school, we have made several important acquisitions in recent years and book publishing and in particular to expand the professional information business at Dow Jones, but these acquisitions have been knowing investment rather reasonable prices and the efficacy of that disciplined investment strategy is reflected in a buoyant earnings.
Robert Thomson: 15%, including a 10% increase at the journal and we expect circulation revenue growth to improve over the course of the year as we cycle through the phases of promotional products.
Robert Thomson: As for advertising that market remained volatile and affected overall growth rates with digital advertising down 5%.
In the first quarter digital real estate revenue overall increased by 13% while profitability rose, 15%. This double digit growth driven by Rei, reaching all time record quarterly revenue. Thanks to strong listing volume and yield and continued growth at Rei India.
Robert Thomson: For clarity it is worth reiterating that advertising as a share of total Dow Jones revenue has fallen from approximately 38% in 2014% to 15% in the most recent quarter and importantly advertising revenue at the news media segment has fallen from approximately 35% of our total revenue.
We believe rei's potential is far from fully realized as the company's expansion into financial services remains in an early bird burgeoning stage and the development of premium products for agents and for families seeking to buy or sell a property continues apace.
A decade ago to 7% in the most recent quarter with just over half of that figure being digital underscoring how much we have evolved.
Robert Thomson: At book publishing Harpercollins had another splendid quarter with profitability, expanding 25% and a margin lift of more than 200 basis points. Thanks to strong digital and back with styles, including J D Vantage, who Billy LNG, which sold one 5 million units across all formats during the quarter.
In the U S. The property market remains challenged with Punitively high mortgage rates, which have had a nocuous impact on sales, but this should be a relatively temporary trend and we fully expect to rebound as those rates decline.
In addition, addressing corner by Daniel Silva, the OD pair of fare by Tessa Bailey and the weaker collection, which benefited from the movie tie in also performed well our Bible sales were again robust during a time of acute political uncertainty and intense global conflict.
Listings have increased year over year with a more than 30% increase in active listings in September, but we are seeing particularly low sales of existing homes, which impacted lead volume.
Our team is positioning the company for the rebound with product enhancements such as dynamic mapping the bolstering of our tech stack and building the brand Halo reflected in a 2% increase in unique users. Despite the softness in property cycles.
Robert Thomson: Digital revenue growth at Harpercollins, a 15% was driven by the continued success of audiobook sales, which climbed 26% and renewed revenue growth in E books, which increased 7%.
As with Rei Realtor Dot com continues to diversify including expanded sell side and your construction offerings and a rental partnership with Zillow and revenues at each of those adjacencies expand it.
Robert Thomson: Looking ahead, we anticipate that momentum will stay strong ahead of the seasonal gifting period.
Robert Thomson: We also have the release in Q2 of shares New book as well as the Blue Arrow by Paula Hawkins and unleashed by Boris Johnson, the former British Prime Minister Who's packaged perceptions are compulsively compelling as the pithy boras once observed the beauty and widow in studying the motives of any politician is trying.
Speaker Change: At Dow Jones, which has more than doubled in profitability since re segmentation four years ago, and which had a strong fiscal 2020 for a beta b data and information services businesses continued to prosper in Q1, the professional information business expanded revenues overall by 8% with 16%.
To decide what his idealism and what yourself interest and often we are left to conclude that the answer is a mixture of the two.
Speaker Change: Gross at risk and compliance and an 11% increase at Dow Jones energy.
Robert Thomson: At subscription video services revenue increased 3% as growth in streaming more than offset declines in linear revenues. While this quarter was impacted by hubbell cost as is normal with any product launch those costs have come down sequentially and we expect them to continue to fall foxtail strength is reflected.
Speaker Change: For context, our risk and compliance revenues over the last five years from fiscal 2019 to fiscal 2024 have more than doubled representing 18% annual compound growth with global instability and increasing regulatory vigilance. There is no sentient law abiding company that does.
Robert Thomson: And its successful transition to streaming which now accounts for nearly 70% of paid subscribers. While op, who has continued to rise advertising on our streaming platforms rose over 45% and accounted for over 40% of Fox tells advertising revenues with notable strength of Kayo, our sports streaming service main.
Speaker Change: Not want to minimize risk and maximize compliance a Dow Jones energy. We're excited by the recent acquisition of a two I a leader in AI powered technology used to optimize fuel pricing strategies, which will complement opus as pricing solutions on the news side total Dow Jones digital only subscriptions grew fifth.
Robert Thomson: Well broadcast churn of 11% fell 70 basis points sequentially and broadcast <unk> rose, 4% on prior year to 89 Australian dollars.
Speaker Change: 15%, including a 10% increase at the journal and we expect circulation revenue growth to improve over the course of the year as we cycle through the phases of promotional products.
Sports are the cornerstone of foxtail success record Rugby league and Australian rules audiences for the just completed season and a fascinating summer sports looming. These trends drove strong free cash flow in the quarter and enabled the further repayment of shareholder loans.
Speaker Change: As for advertising that market remains volatile and affected overall growth rates with digital advertising down 5%.
Speaker Change: For clarity it is worth reiterating that advertising as a share of total Dow Jones revenue has fallen from approximately 38% in 2014% to 15% in the most recent quarter and importantly advertising revenue at the news media segment has fallen from approximately 35% of our total revenue.
Robert Thomson: At news media profitability increased 14%, despite the challenging macro environment across LMR stage, we are starting to see the positive impact of our landmark agreement with overnight I as well as the impact of our cost discipline.
Robert Thomson: In Australia, our digital subscribers rose to 1.13 million and the New York Post Digital network recorded 103 million monthly unique users in September.
Speaker Change: A decade ago to 7% in the most recent quarter with just over half of that figure being digital underscoring how much we have evolved.
Speaker Change: At book publishing Harpercollins had another splendid quarter with profitability, expanding 25% and a margin lift of more than 200 basis points. Thanks to strong digital and backwards styles, including J D Vantage, who Billy LNG, which sold one 5 million units across all formats during the quarter.
Robert Thomson: The retooling of talk TV meant a much lower cost run rate as we focused on video and deployed the acquired skills to enhance the video offerings at the times and the Sun.
Robert Thomson: Our UK results also benefited from cost savings related to our new printer joint venture with the Daily Mail group and a reduction of investment at the Southern U S, which was bruised by sudden capricious algorithm changes.
Speaker Change: In addition, addressing corner by Daniel Silva, the Oh pair affair by Tessa Bailey and the weaker collection, which benefit from the movie tie in also performed well our Bible sales were again robust during a time of political uncertainty and intense global conflict.
Robert Thomson: That necessary focus on costs is part of our absolute determination to sustain and invest in our journalism.
Robert Thomson: Now we come to another significant moment amendments that is for me personally and professionally tinged with a certain sadness Susan.
Speaker Change: Digital revenue growth at Harpercollins, a 15% was driven by the continued success of audiobook sales, which climbed to 26% and renewed revenue growth enables which increased 7%.
Robert Thomson: Susan Penuche O our esteemed Chief financial Officer is stepping down to take a time out from the hurly burly of business to devote time to her beautiful family.
Speaker Change: Looking ahead, we anticipate that momentum will stay strong ahead of the seasonal gifting period.
Speaker Change: We also have the release in Q2 of shares New book as well as the Blue Arab by Paula Hawkins and unleashed by Boris Johnson, former British Prime Minister Who's packaged perceptions are compulsively compelling as.
Robert Thomson: Susan has played an absolutely crucial role in the transformation of news Corp. Over the past eight years. She is an empathetic enlightened energetic leader, who has helped me the board and her colleagues navigate a transition that has fundamentally changed the character of the company.
Speaker Change: As the pithy boras once observed the beauty and riddle in studying the motives of any politician is trying to decide what his idealism and what yourself interest and often we are left to conclude that the answer is a mixture of the two.
Robert Thomson: We have reported record results during her tenure and that is a testament to the success of her stealing efforts Rupert and Lachlan have made very clear, they're genuine appreciation for Susan's contribution to the company and her positive influence we will definitely resonate for many years to come.
Speaker Change: At subscription video services revenue increased 3% as growth in streaming more than offset declines in linear revenues. While this quarter was impacted by hubbell cost as is normal with any product launch those costs have come down sequentially and we expect them to continue to for Fox.
Robert Thomson: Susan and her inimitable way is irreplaceable.
Robert Thomson: We are honored to announce that our new CFO is Lavinia Chandra shakeout, formerly the CFO Dr. Joe <unk>, the global drinks business, where she worked closely with the great I've in Manassas, the light chief executive of Doj.
Speaker Change: Fox tells strength is reflected in its successful transition to streaming which now accounts for nearly 70% of paid subscribers, while op, who has continued to rise.
Speaker Change: Advertising on our streaming platforms rose over 45% and accounted for over 40% of Fox tells advertising revenues with notable strength of Kayo, our sports streaming service. Meanwhile, broadcast churn of 11% fell 70 basis points sequentially and broadcast <unk> rose, 4% on prior year to 89.
Robert Thomson: Lavinia was previously the CFO for the North America business as well as global head of Investor Relations at <unk> prior to that she had significant.
Robert Thomson: And global financial leadership roles at modernize and Procter and Gamble Susie.
Robert Thomson: Susan will stay on in her current role through the end of the calendar year, and then transition to an advisory role for six months to assist Lavinia in making the transition from Bourbon to books and from June to journalism, though it's fair to say that journalists in June are well acquainted with each other.
Speaker Change: Ryan.
Speaker Change: Sports are the cornerstone of Fox tell success record Rugby league in Australia audiences for the just completed season and a fascinating summer sports looming.
Speaker Change: These trends drove strong free cash flow in the quarter and enabled the further repayment of shareholder loans.
Robert Thomson: We salute, Susan and we welcome Lavina.
The result of the U S elections means that one of our cherished directors Kelly a yacht is leaving our board to become the governor of New Hampshire.
Speaker Change: At news media profitability increased 14%, despite the challenging macro environment across LMR stage, we are starting to see the positive impact of our landmark agreement with overnight I as well as the impact of our cost discipline.
Robert Thomson: Kelly too has played a pivotal role in our successful evolution. Her wise counsel has been priceless for me enter intelligence her insight and her integrity have been obvious to all who have served with her on the board I know that Rupert and Lachlan are sincerely grateful for her service and New Hampshire.
Speaker Change: In Australia, our digital subscribers rose to 1.13 million and the New York Post Digital network recorded 103 million monthly unique users in September.
Speaker Change: The retooling of talk T V meant a much lower cost run rate as we focused on video and deployed the acquired skills to enhance the video offerings at the times and the Sun.
Robert Thomson: Gain is surely our loss.
Speaker Change: And now for the final time.
I'll give you Susan furniture.
Speaker Change: Brilliant CFO and my Dear friend.
Speaker Change: Our UK results also benefited from cost savings related to our new printer joint venture with the Daily Mail group and a reduction of investment of the southern U S, which was bruised by sudden capricious algorithm changes.
Susan Penuche: Thank you Robert for those kind words, and thank you for a wonderful partnership and your guidance and support either the eve, which I shall always selling it's been an absolute pleasure to work alongside you.
Speaker Change: That necessary focus on costs is part of our absolute determination to sustain and invest in our journalism.
Susan Penuche: As Robert said afternoon Easiness roll in over two decades is core and edge takes a much desired time off to spend with my family.
Susan Penuche: It has been a privilege to help Robert late news Corp's transformation into the global news and information powerhouse. It is today and I truly believe that the company has an incredibly bright future ahead.
Speaker Change: Now we come to another significant moment amendments that is for me personally and professionally tinged with a certain sadness Susan.
Speaker Change: Susan Puccio, our esteemed Chief financial Officer is stepping down to take a time out from the hurly burly of business to devote time to her beautiful family.
Susan Penuche: I think say fortunate over the years still had the support by three per in Laughlin together without board of directors and I would like to sincerely thank them all.
Susan Penuche: Most importantly, I want to thank the talented teams past and present across most call who I've had the privilege of working with together with my hugely talented and hardworking finance team, who I will Miss My Stifel.
Susan has played an absolutely crucial role in the transformation of music or over the past eight years. She is an empathetic enlightened energetic leader who has helped me the board and her colleagues navigate a transition that has fundamentally changed the character of the company.
Susan Penuche: I am committed to supporting loving yet during the transition and will be a willing way soft going forward with that I'll take you through the quarter.
We have now grown profit there was here I think he had six consecutive quarters by transforming the earnings profile of that change to focus more on database and information services capitalizing on the upswing in Australia listing volumes at Rei, while reinvesting in enhancing relative product offerings, revitalizing Harper Collins with strong digital revenue growth and signing.
Speaker Change: We have reported record results during her tenure and that is a testament to the success of her stealing efforts Rupert and Lachlan have made very clear, they're genuine appreciation for Susan's contribution to the company and her positive influence we will definitely resonate for many years to come.
Susan Penuche: Our landmark agreement with NII, leveraging the value of our incredible content across the <unk> portfolio.
Speaker Change: Susan and her inimitable way is irreplaceable.
Speaker Change: We are honored to announce that our new CFO is lavina Chandra Shaker, formerly the CFO Dr. Joe <unk>, the global drinks business, where she worked closely with the great Ivan Menezes light chief executive of Doj.
Susan Penuche: This has helped to drive record first quarter revenue and profitability together with a firm focus on the execution of that digital first strategy supported by focused M&A and organic reinvestment and disciplined cost initiatives all underpinned by our three core pillars of Dow Jones digital real estate and book publishing.
Speaker Change: Lavinia was previously the CFO for the North America business as well as global head of Investor Relations at Dr. Joe Prior to that she had significant.
Susan Penuche: First quarter total revenues were almost $2 $6 billion up 3% and.
Susan Penuche: In total segment EBITDA reached $415 million up 14% year over year.
Speaker Change: And global financial leadership roles at Mon delays, and Procter and Gamble Susan.
Susan Penuche: Margins improved by 150 basis points to 16, 1%.
Speaker Change: Susan will stay on in her current role through the end of the calendar year, and then transition to an advisory role for six months to assist Lavinia in making the transition from Bourbon to books and from gene to journalism, though it's fair to say that journalists in June are well acquainted with each other.
Susan Penuche: These results also include $12 million of deal related costs.
Susan Penuche: Which impacted title segment EBITDA growth by approximately three percentage points.
Susan Penuche: First quarter adjusted revenues rose, 2% compared to the prior year, while adjusted total segment EBITDA rose 12% versus the prior year.
Speaker Change: We salute Susan and we welcome Lumpiness.
Susan Penuche: For the quarter, we reported earnings per share of 21 cents compared to five cents in the prior year adjusted earnings per share with 21 cents in the quarter compared to 16 cents in the prior year.
Speaker Change: The result of the U S elections means that one of our Turkish directors Kelly a yacht is leaving our board to become the governor of New Hampshire.
Susan Penuche: Moving onto the results for the individual segments, starting with China.
Speaker Change: Kelly too has played a pivotal role in our successful evolution. Her wise counsel has been processed for me enter intelligence or insight and her integrity have been obvious to all who have served with her on the board.
Susan Penuche: The first quarter result, hurricane strong attach ainge with revenues of $552 million of three different year over year.
Susan Penuche: And with the largest segment contributed to overall company revenue digital revenue accounted for 82% of title segment revenues this quarter up one percentage point from the last year.
Speaker Change: I know that Rupert and Lachlan are sincerely grateful for her service.
Speaker Change: And you Hampshire's gain is surely our loss.
Susan Penuche: Our basic products continued to grow strongly with professional information business revenues rising 8% near I think despite the impact of a customer dispute affecting approximately two thirds of the growth within paperless, driven by volume case, Upsells and new customers and products and retention remained very strong at nearly 90%.
Speaker Change: And now for the final time, I give you Susan furniture.
Speaker Change: <unk> CFO and Mario friend.
Susan Puccio: Thank you Robert for those kind words, and thank you for a wonderful partnership and your guidance and support they need which I shall always telling me it's been an absolute pleasure to work alongside you.
Susan Penuche: Revenue this quarter included 16% growth at risk and compliance to a record $81 million and 11% growth at Dow Jones and equal to $68 million. This result was particularly impressive in the context of the Pi revenue comparisons, which rose, 23% and 20% respectively.
Susan Puccio: As Robert said after nearly eight years in this role in over two decades.
Susan Puccio: It takes a much desired time off to spend with my family.
Susan Puccio: It has been a privilege to help it late news corp's transformation into the global he's an information powerhouse with today and I truly believe that the company has an incredibly bright future ahead.
Susan Penuche: At risk and compliance demand remains strong from new and existing customers with recently launched products, including two AI powered products that that screening and monitoring and partnership with with an integrity check developing very soft sales pipeline at Dow Jones energy revenue in the quarter also continued to benefit from the launch of new products and benchmarks together with price adjustments.
Susan Puccio: I think say fortunate opening he still had the support of phase III and Lachlan together without board of directors and I would like to sincerely thank them all.
Susan Puccio: Most importantly, I want to thank the talented attained past and present across in this call who I've had the privilege of working with together with my team with talented and hardworking finance team, who I won't Miss My Stifel.
As Robert mentioned, Dow Jones Energy acquired eye to eye systems, a leader in AI powered fuel pricing solutions that apply for fans predictive technologies to real time fuel pricing data and the electric vehicle charging station market.
Susan Puccio: I am committed to supporting loving the answering the transition and won't be a willing re soft going forward with that I'll take you through the quarter.
Susan Puccio: We have now grown profit there was here I think he had six consecutive quarters by transforming the earnings profile without a change to focus more on database information services capitalizing on the upswing in Australia listing volumes at Rei, while reinvesting in enhancing real test product offerings, revitalizing Harper Collins with strong digital revenue growth and signing.
Susan Penuche: Within the Dow Jones container business circulation revenues rose, 1% versus the prior year as growth in digital only subscriptions was nicely offset by lower print volume.
Susan Penuche: Digital only subscriptions increased by 15% and here I think me and by 19 9000 sequentially bundling accounted for approximately 31% at the sequential with digital only volume growth in the first quarter print volume declined by 16% and here I think were partially offset by higher pricing.
Susan Puccio: Our landmark agreement with <unk>, leveraging the value of our incredible content across the news portfolio.
Susan Puccio: This has helped to drive record first quarter revenue and profitability together with our first focus on the execution of that digital first strategy supported by focused M&A and organic investments and disciplined cost initiatives all underpinned by our three core pillars of Dow Jones digital real estate and book publishing.
Susan Penuche: Digital circulation accounted for 72% of title contains circulation revenue for the quarter.
Susan Penuche: The condition to full of step up pricing from that digital subscriptions added in the past me. If I introduction promotional offers has so far exceeded our expectations, which will help to drive improvements in year over year circulation revenue growth throughout the balance of the year, which we expect will be more weighted to the second half.
Susan Puccio: This quarter total revenues were almost $2 $6 billion up 3% year over year and title segment EBITDA reached $415 million up 14% year after year.
Susan Penuche: Advertising revenues declined 7% to $85 million lower than we had hoped with digital down 5% impacted by some softness in the technology and finance categories and lower programmatic sales this quarter.
Susan Puccio: Margins increased by 150 basis points to 16, 1%.
These results also include $12 million of deal related costs the Rei.
Susan Puccio: Which impacted title segment EBITDA growth by approximately three percentage points.
Susan Penuche: Digital represented 67% of advertising revenues up from 66% last year, while overall advertising revenues accounted for 15% of Dow Jones title revenue.
Susan Puccio: First quarter adjusted revenues rose, 2% compared to the prior year, while adjusted total segment EBITDA rose 12% versus the prior year.
Susan Puccio: For the quarter, we reported earnings per share 21 cents compared to five cents in the prior year adjusted earnings per share with 21 cents in the quarter compared to 16 six in the prior year.
Susan Penuche: Dow Jones segment EBITDA for the quarter grew 6% to $131 million with costs, increasing just 2% this quarter and margins increasing to 23, 7%.
Susan Penuche: <unk> again accounted for the majority of the profitability maybe.
Susan Puccio: Moving on to the results for the individual segments, starting with China.
Susan Penuche: Moving on to digital real estate segment revenues were $457 million up 13% versus the prior year and 11% on an adjusted basis segment EBITDA was $140 million upper right off 15% driven by higher profit contribution from the area acreage, which notably includes steel related cost for the proposed transaction.
Susan Puccio: The first quarter results hurricane strong attach and with revenues of $552 million up 3% and you're right the year and with the largest segment contributor to overall company revenue digital revenue accounted for 82% of title Tower Crane segment revenues this quarter up one percentage point from the last year.
Susan Puccio: Ah basically products continued to grow strongly the professional information business revenues rising 8% near I think despite the impact of a customer dispute affecting approximately two thirds of the growth within peak was driven by volume case, upsells, new customers and products and retention remains very strong at nearly 90%.
Susan Penuche: Which was subsequently withdrawn.
Susan Penuche: The segment EBITDA increased 13%.
I had an outstanding quarter with revenues rising 22% year on year to $388 million its highest ever quarterly revenues growth was again driven by a combination of residential yield increases continued strong growth in national listings in customer contract upgrades.
Susan Puccio: We have any this quarter included 16% growth at risk and compliance to a record $81 million and 11% growth at Dow Jones and the shortage of $68 million. These results were particularly impressive in the context that the pi revenue comparisons, which rose, 23% and 20% respectively.
Residential yield growth improved by 15% you buy listings rose approximately 7% with Sydney up 11% in Melbourne up 9% with both markets achieving a 10 year high in September.
Susan Penuche: In addition, Ari I saw strong way franking credits that are a India and growth of financial services due to higher settlements in submissions.
Susan Puccio: At risk and compliance demand remains strong for new and existing customers with recently launched products, including two AI powered products that screening and monitoring and partnership with GE and integrity check developing rifle sales pipeline at Dow Jones energy revenue in the quarter continued to benefit from the launch of new products and benchmarks together with price adjustment.
Susan Penuche: Please refer to our release and the conference call for more details.
Susan Penuche: Royalty revenues for the quarter of $140 million with down just 1% compared to the prior he as revenue declines continue to moderate for the fifth consecutive quarter for the quarter real estate revenues fell 4% driven by lower referral in lead generation revenue is reflective of the broader macro trends lethal even fell 1% while average monthly unique users for the <unk>.
Speaker Change: As Robert mentioned, Dow Jones Energy acquired eye to eye systems, a leader in AI powered fuel pricing solutions that apply for fats predictive technologies to real time fuel pricing data and the electric vehicle charging station market.
Susan Penuche: Water rose, 2% to 77 million year over year, and up 4% sequentially as realtor com continues to maintain strong audience share despite much higher competitive marketing spend.
Speaker Change: Within the Dow Jones consumer business circulation revenues rose, 1% versus the prior year as growth in digital only subscriptions was mostly offset by lower print volume.
Susan Penuche: Quarter relative dotcom strategy is successfully diversifying revenues to capture more of the title real estate marketplace to that end, our key adjacencies of seller, new Heinz and rentals collectively grew revenues this quarter versus the prior year, representing 19% of revenues and we anticipate continued strong growth going forward this fiscal year.
Speaker Change: Digital only subscriptions increased by 15% and here I think me and by 19 9000 sequentially bundling accounted for approximately 31% at the sequential digital only volume growth in the first quarter print volume declined by 16% and here I think were partially offset by higher pricing.
Speaker Change: Digital circulation accounted for 72% of title container circulation revenue for the quarter.
Susan Penuche: We also dotcom remains focused on strengthening its core offerings and to be best positioned for recovery. We released several product enhancements this quarter, including a renovation design at all powered by AI dynamic mapping across all platforms and a visual based keyword search that was releasing data, allowing consumers to use natural language to search for hiring.
Speaker Change: The condition to full step up pricing come out digital subscriptions added in the past me if I introduction commercial office has so far exceeded our expectations, which will help to drive improvements in year over year circulation revenue growth throughout the balance of the year, which we expect will be more weighted to the second half.
Susan Penuche: As we expected the rate of increase reinvestment at realtor Dot com moderated from the past two quarters with costs up approximately $2 million compared to the prior year.
Speaker Change: Advertising revenues declined 7% to $85 million lower than we had hoped with digital down 5% impacted by some softness in the technology and finance categories and lower programmatic sales this quarter.
Susan Penuche: At book publishing momentum from the prior year continued with revenues of $546 million up 4%, while segment EBITDA increased by 25% to $81 million margins expanded by over 200 basis points to 14, 8% helped by a strong digital and pack. This performance, we continue to benefit from lower returns and operating.
Speaker Change: Digital represented 67% of advertising revenues up from 66% last year, while overall advertising revenues accounted for 15% of Dow Jones title revenue down.
Speaker Change: Dow Jones segment EBITDA for the quarter grew 6% to $131 million with costs, increasing just 2% this quarter and margins increasing to 23, 7% basically again accounted for the majority of the profitability maybe.
Cost moderation together with strong Bible sales and higher trade sales in the U K.
Susan Penuche: Harpercollins posted record digital revenues of $129 million, increasing 15% from the prior year driven by the addition of Spotify in general or the April growth across all regions in title with digital sales represented 25% of consumer revenues compared to 22% in the prior year.
Speaker Change: Moving on to digital real estate segment revenues were $457 million up 13% versus the prior year and 11% on an adjusted basis segment EBITDA was $140 million upper right off 15% driven by higher profit contribution from the our acreage, which notably includes deal related cost for the proposed <unk> transaction.
Susan Penuche: OTI books grew 26% year <unk>, while we also saw healthy growth in APAC. This quarter. The backlist contributed 64% of consumer revenues up from 61% last year turning to the subscription video services segment revenues for the quarter with $501 million up 3% compared to the prior year on an adjusted basis revenues.
Speaker Change: Which was subsequently withdrawn.
Speaker Change: Segment EBITDA increased 13%.
Speaker Change: I had an outstanding quarter with revenues rising 22% year on year to $388 million its highest ever quarterly revenues growth was again driven by a combination of residential yield increases continued strong growth in national listing and customer contract upgrades.
Rose, 1% versus the prior year.
Susan Penuche: <unk> revenues accounted for 34% of circulation and subscription revenues versus 30% in the prior year and growth again outpaced declines in broadcast revenues.
Speaker Change: Residential yield growth improved by 15% knee by listings rose approximately 7% is Sydney up 11% in Melbourne up 9% with both markets are changing a 10 year high in September.
Susan Penuche: EBITDA in the quarter with $92 million down just $1 million versus last year. Despite the inclusion of $11 million of costs related to Apple for devices and marketing.
Speaker Change: In addition, Ari I saw strong way franking credits that are a India and growth of financial services due to higher settlements in submissions.
Susan Penuche: Excluding the Hubble investment Fox tells profitability would've been higher for the quarter for the quarter adjusted segment EBITDA fell 3%.
Speaker Change: Please refer to our release and the conference call for more details.
Susan Penuche: Turning to news media performance was mixed with advertising conditions challenging, particularly in the U K, but that was more than offset by lower costs. As a reminder, advertising revenues for the segment now account for only 7% of total company wide revenue.
Speaker Change: We also as revenues for the quarter of $140 million were down just 1% compared to the prior year as revenue declines continue to moderate for the fifth consecutive quarter.
Speaker Change: For the quarter real estate revenues fell 4% driven by lower referral and lead generation revenues reflective of the broader macro trends lethal and fell 1% while average monthly unique users for the quarter rose, 2% to 77 million euros, a year and 4% sequentially as we look at the continues to maintain strong audience share despite much higher.
Susan Penuche: Revenues for the quarter were $521 million down 5% versus the prior year, while adjusted revenues fell 7%.
Susan Penuche: Segment, EBITA, which only accounted for approximately 4% of Typhoon News Corp, EBITA shading proof the erosion in kitchen by cost saving initiatives adjusted segment EBITDA increased 7% turning now to the outlook market trends remain mixed geographically how will we hope to see continued improvements across the portfolio throughout the balance of the financial year.
Speaker Change: Our competitive marketing spend.
Speaker Change: Quarter real to dotcom strategy successfully diversifying revenues to capture more of the total real estate marketplace. So that in our case since a seller new homes and rentals collectively grew revenues this quarter versus the prior year, representing 19% of revenues and we anticipate continued strong growth going forward this fiscal year.
Susan Penuche: Some of the themes across each of our segments include at Dow Jones. The team will remain focused on basically growth in cleaning up selling of new products across risk and compliance from Dow Jones energy, we expect to see pre circulation revenue growth through digital subscription step up pricing, albeit second half weighted given facing them for news and we'll continue to monitor those trends closer.
Speaker Change: We also dotcom remained focused on strengthening its core offerings and to be best positioned for recovery. We released several product enhancements this quarter, including a renovation design a tool powered by AI dynamic mapping across all platforms and a visual based keyword search that was releasing data, allowing consumers to use natural language to search for a home.
Susan Penuche: <unk>.
Benches are expected to be modestly higher year, I think 82 investment notably in day to day. However, we will continue to focus on cost efficiencies to drive growth.
At digital real estate Australian residential new buy listings for October are up 14% or 7% on a like for like basis. Excluding additional working days. We also dotcom will continue to focus on technology improvements and enhance content and product offerings. We hope to see some revenue improvements given unexpected interest rate cuts and continued growth from adjacency.
Speaker Change: As we expected the rate of increase reinvestment realtor dot com moderated from the past two quarters with costs up approximately $2 million compared to the prior year.
At the publishing momentum from the prior year, continuing with revenues of $546 million up 4%, while segment EBITDA increased by 25% to $81 million.
Susan Penuche: At book publishing as I mentioned last quarter, we hope to see further profit improvements in 2025, albeit likely at a much more modest rate given more normalized prior year comparison at subscription video services. The strategy remains to scale the stream products, while retaining high value broadcast customers through increased opex and Ken measures.
Speaker Change: Such as expanded by over 200 basis points to 14, 8% helped by strong digital and pack lists performance. We continued to benefit from lower returns and operating cost moderation together with strong fiber sales and higher trade sales in the U K.
Speaker Change: Harper Collins posted record digital revenues of $129 million, increasing 15% from the prior year driven by the addition of Spotify in general already April growth across all regions in title digital sales represented 25% of consumer revenues compared to 22% in the prior year ODI books grew 26% year or anything.
And we continue to anticipate the rate of investment in hopper to be lower during the remainder of fiscal 2025.
Susan Penuche: At news media, despite a challenging advertising market place. We expect this segment to benefit from lower talk T. They costs together with savings associated with the new commercial printing joint venture with J&J and the U K and ongoing operational efficiencies will remain a focus.
Speaker Change: While we also saw healthy growth in APAC. This quarter. The backlist contributed 64% of consumer revenues up from 61% last year turning to the subscription video services segment revenues for the quarter with $501 million up 3% compared to the prior year on an adjusted basis revenues rose 1% versus the prior year.
Susan Penuche: We expect the other segment cost to be higher than last year due to ongoing II related costs, including legal costs 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 if you've joined via the zoom application. Please use the raytheon functionality to ask a question.
Speaker Change: <unk> revenues accounted for 34% of circulation and subscription revenues versus 30% in the prior year and growth again outpaced declines in broadcast revenues segment EBITDA in the quarter with $92 million down just $1 million versus last year. Despite the inclusion of $11 million of costs related to topple for devices and marketing excluding the hub.
Speaker Change: You've joined via the Iron line. Please press star nine.
Speaker Change: Questions will be answered in the order. They are received we will now pause for a moment to assemble the queue.
Speaker Change: Okay. Our first question comes from Alan Gould with loop capital. Please limit yourself to ask a question.
Speaker Change: <unk> investment for cloud profitability would have been higher for the quarter for the quarter adjusted segment EBITDA fell 3%.
Speaker Change: Hi, Thanks for taking the question I've got a general question on <unk>.
Speaker Change: Turning to news media performance was mixed with advertising conditions challenging, particularly in the U K, but that was more than offset by lower costs. As a reminder, advertising revenues for the segment now accounts for 7% of total company wide revenue.
So I see Dow Jones of content licensing revenue in there can you give us some sense on how much AI revenue came in during the quarter, our split between Dow Jones and news media segment and what are the possibilities for getting some AI revenue for the Harper Collins Division.
Speaker Change: Revenues for the quarter were $521 million down 5% versus the prior year, while adjusted revenues fell 7%.
Speaker Change: Segment, EBITA, which only accounted for approximately 4% of title News Corp, EBITA shading treatment year over year, driven by cost saving initiatives adjusted segment EBITDA increased 7% turning now to the outlook market trends remain mixed geographically how will we hope to see continued improvements across the portfolio throughout the balance of the financial year.
Speaker Change: <unk>.
Speaker Change: Oh well thanks for the question, we can't be more specific than we already have been about the distribution of our revenues.
Do you really from the Arpin I ideal, but you will see it having an impact in the news media section, there's no doubt about that as in subsequent quarters.
Speaker Change: Some of the themes across each of our segments include at Dow Jones. The team will remain focused on basic pay growth, including Upselling, our new products across risk and compliance and Dow Jones energy, we expect to see increased circulation revenue growth through digital subscription step up pricing, albeit second half weighted given facing them for news and we'll continue to monitor device trends closely.
Speaker Change: And it is also a part now of the revenue and profit profile of Dow Jones.
But other than that I'm not at Liberty to signing more given confidentiality requirements I think Alan the only thing I could add to that is I know we've had some questions in the past about message down in Australia, and the impact of that and I think all we can say is collectively across all our agreements that we would expect to see a positive year on year movement in relation to <unk>.
Speaker Change: <unk>.
Speaker Change: Those are expected to be modestly higher year, I think we need you to investment notably in database. However, we will continue to focus on cost efficiencies to drive growth.
Speaker Change: Yeah.
Speaker Change: Thank you. Thank you and good luck Susan.
Speaker Change: Susan.
Speaker Change: Digital real estate Australian residential new buy listings for October are up 14% or 7% on a like for like basis. Excluding additional working days. We also dot com will continue to focus on technology improvements and enhance content and product offerings. We hope to see some revenue increases given expected interest rate cuts and continued growth from adjacency.
Speaker Change: Thanks, Alan Thanks, Alan.
Speaker Change: We'll take our next question please.
Speaker Change: Our next question comes from the line of David Karnofsky with J P. Morgan. Please <unk> yourself to ask your question.
Speaker Change: Hey, Thank you for the question Robert I think you noted an expectation for Jones consumer circulation.
Speaker Change: At book publishing as I mentioned last quarter, we hope to see further profit improvements in 2025, albeit likely at a much more modest rate given more normalized prior year comparison at subscription video services. The strategy remains to scale the stream products, while retaining high value broadcast customers through increased <unk> and shed measures.
Speaker Change: Growth to improve from here as you cycled past promotional periods.
Speaker Change: Can you dig in here, a little bit provide any color around that process.
Speaker Change: Is your confidence you can bring those promo subs into higher tiers, and then you know as we look out over the medium term what should we consider the possible in terms of a normalized growth rate.
Speaker Change: And we continue to anticipate the right estimate hobbled the lowest during the remainder of fiscal 2025.
Speaker Change: For that circulation line. Thank you.
Speaker Change: David Thanks for the question, obviously for legal reasons why powers, a prognostication is somewhat limited, but I think you can see that overall circulation at Dow Jones rose, 11% or $5 9 million subs, while digital only rose 15% to $5 3 million.
Speaker Change: At news media, despite a challenging advertising market place, we expect the segment to benefit from lower talk to they costs together with savings associated with the new commercial printing joint venture with J&J in the UK and ongoing operational efficiencies will remain a focus.
Speaker Change: We expect other segment cost to be higher than last year due to ongoing AI related costs, including legal costs with that let me hand, it over to the operator for Q&A.
Nah Elmira the team had been very confident that with the phasing of discounts and subsequent price price movements, we would see positive movements in digital circulation revenue.
Speaker Change: Thank you we will now start the Q&A session. Please limit your questions to one per participant if.
That is evidenced now with the 4% increase in digital circulation revenue on the same quarter last year now obviously it was a little softness in print, which affected total circulation revenue, but the team confidently expects to positive digital trajectory to continue in this quarter as engagement and retention rates improve.
Speaker Change: If you've joined via the zoom application. Please use the Raytheon functionality to ask a question if you've joined via the Iron line. Please press star nine.
Speaker Change: Questions will be answered in the order. They are received we will now pause for a moment to assemble the queue.
Speaker Change: And David we just again without giving specific guidance on this and we would expect the rate of increase in Sip revenue said digital to step off at Dow Jones and be more weighted in the second half of the customers.
Speaker Change: Okay.
Speaker Change: First question comes from Alan Gould with loop capital. Please limit yourself to ask a question.
Speaker Change: Thanks for taking the question of kind of a general question on <unk>.
Speaker Change: So I see Dow Jones of content licensing revenue in there can you give us some sense on how much AI revenue came in during the quarter I was split between Dow Jones and news media segment and what are the possibilities for getting some AI revenue for the Harper Collins Division. Thank you.
Uh huh.
Speaker Change: Thank you Dave look we'll take our next question. Please.
Our next question comes from the line of Kanon him with Goldman Sachs. Please on mute and ask your question.
Speaker Change: Good morning, guys and Susan Thanks for the help of visa and best of luck for the future and maybe just the books margin. This quarter just talk about sort of the sustainability of that I mean, how much of that 260 basis points expansion needs.
Speaker Change: Sure.
Speaker Change: Oh, Thanks for the question, we can't be more specific than we already have been about the distribution of our revenues.
Speaker Change: Particularly from the <unk> II ideal, but you will see it having an impact in the news media section, there's no doubt about that as in subsequent quarters.
Speaker Change: Title performance from tobacco contribution just maybe more of a digital contribution so the underlying efficiencies that are more sustainable.
Speaker Change: And it is also a part now of the revenue and profit profile of Dow Jones, but other than that I'm not at Liberty to signing two more given confidentiality requirements I think Alan the only thing I could add to that is I know we've had some questions in the past about message down in Australia, and the impact of that and I think all we can say is.
Speaker Change: Can you you are quite right. We obviously had a strong quarter copper columns, but it's fair to say that that momentum is carried across to the current quarter.
Speaker Change: Whichever way you look at the numbers Harpercollins is traveling well our margin improved to 14, 8% from 12% in the same quarter last year.
Speaker Change: We have already said the reported EBITDA growth was 25%, thus significantly our digital sales rose, 15% with audio surging 26%.
Speaker Change: Typically across all our agreements that we would expect to see positive year on year movement in relation to revenue.
Speaker Change: Thank you. Thank you and good luck Sue.
Speaker Change: Susan.
Speaker Change: Also significantly E books, which had been somewhat soft rising a solid 7% after a period of relative sluggishness.
Speaker Change: Thanks, Alan Thanks, Alan look we will take our next question. Please.
Speaker Change: Our next question comes from the line of David Karnofsky with J P. Morgan. Please <unk> yourself to ask your question.
No reason to suggest that those trends will suddenly Wade.
Speaker Change: Hey, Thank you for the question Robert I think you noted an expectation for Jones consumer circulation.
Thank you.
Jean Luc will take our next question. Please.
Speaker Change: Our next question comes from line of NGL Rykowski with Evans and partners. Please Amit your line to ask a question.
Speaker Change: Growth to improve from here as you cycled past promotional periods.
Speaker Change: Can you dig in here, a little bit provide any color around that process.
Speaker Change: Hi, Robert Hi, Susan.
Speaker Change: Try a question is precision all the basis for life. After this call.
Speaker Change: The confidence you can bring those promo subs into higher paying tiers and then.
Speaker Change: My question is really twofold Fisher.
Speaker Change: Look out over the medium term what should we consider.
Speaker Change: Especially looking at advertising at Dow Jones. He has suffered damage on sharpie sort of Yorkshire acknowledged some of the weakness I get that it's a smaller part of the segment, but they did it.
Speaker Change: Possible in terms of a normalized growth rate.
Speaker Change: For that circulation line. Thank you.
Speaker Change: David Thanks for the question, obviously for legal reasons why powers. The prognostication is somewhat limited, but I think you can see that overall circulation at Dow Jones rose, 11% to $5 9 million subs, while digital only rose 15% to $5 3 million.
Speaker Change: The specific issues of factors, which are causing this and what is your thinking around when we might see a recovery.
Secondly, the Fox show shareholder lines, I think I can enroll a child that there has been a mall ratio for a pilot yup negotiated cashless word I see now plus that retirement policy promises. Thank you.
Speaker Change: Yeah Omar on the team have been very confident that with the phasing of discounts and subsequent cross price movements, we would see positive movements in digital circulation revenue.
Speaker Change: Oh interesting during an election period certain companies are a little bit apprehensive about advertising. So we have seen some softness in finance and tech of Dow Jones, but but overall, but do bear in mind that use major advertising is itself only 7% of total revenue and more than half of that is.
Speaker Change: And that is evidenced now with the 4% increase in digital circulation revenue on the same quarter last year now obviously it was a little softness in print, which affected total circulation revenue, but the team confidently expects to positive digital trajectory to continue in this quarter as engagement and retention rates improve.
Speaker Change: Now digital revenue.
Speaker Change: When you look at.
Speaker Change: And David we just again without giving specific guidance on this we would expect the rate of increase in Sip revenue said digital to step off at Dow Jones and be more weighted in the second half the year.
Speaker Change: Dow Jones in particular, there was a full in digital revenue.
Speaker Change: Advertising revenue and a slightly larger falling print advertising, but.
Speaker Change: Candidly in the current quarter, we are expecting an increase in digital advertising revenue at Dow Jones, and frankly across the unused media properties, including the New York Post UK masked heads and disk drive it.
Speaker Change: After this.
Speaker Change: Thank you Dave look we'll take our next question. Please.
Speaker Change: Our next question comes from the line of Cana him with Goldman Sachs. Please on mute and ask your question.
Speaker Change: Sure. Thanks for your kind words, and just in relation to the Fox to align it. It is in the filings in it that that looks now sits at 545 million Australian dollars.
Speaker Change: Good morning, guys and Susan Thanks for the help of these missiles and maybe just the books margin. This quarter just talk about sort of the sustainability of that I mean, how much of that 250 basis points expansion needs.
Speaker Change: Thanks, Angela Thank you.
Speaker Change: Thanks for that Joe look we'll take our next question. Please.
Our next question comes from the line of Craig Huber with Huber Research. Please on mute to ask your question.
Speaker Change: Title performance from tobacco contribution just maybe more of a digital contribution so the underlying efficiencies that are more sustainable.
Yeah, Hi, there likewise Susan.
You very much for all your help over the years and best of luck to you.
Speaker Change: Can you you are quite right, we obviously had a strong quarter topical ones, but it's fair to say that that momentum is carried across to the current quarter.
Speaker Change: News Corp Donlin.
Speaker Change: Great job.
Speaker Change: Robert.
Speaker Change: Just curious what.
Speaker Change: We understand it's been a year here since you announced your companies looking to optimize structure has gone to the board of directors.
Speaker Change: Whichever way you look at the numbers Harpercollins is traveling well our.
Speaker Change: Our margin improved to 14, 8% from 12% in one quarter last year.
Speaker Change: And although you've made the public announcements are for sitting here literally 12 months later and stuff.
Speaker Change: We have already said the reported EBITDA growth was 25% now significantly our digital sales rose 15%.
Speaker Change: When should investors expect something materially happened Europe, it's been a full year I mean, why why the delay is the delay.
Speaker Change: And with audio surging <unk>, 6%.
Speaker Change: Because of this Murdoch family issues going through the court system is that whats going in this whole thing.
Speaker Change: Also significantly E books, which had been somewhat soft rising a solid 7% after a period of relative sluggishness.
Speaker Change: Can't believe for life me that you guys are making announcements and then nothing happen per year. Most of that came out of left field that you were not expecting can you just help us understand what the delay is here. Please.
Speaker Change: No reason to suggest that those trends will suddenly Wayne.
Speaker Change: Thank you.
Speaker Change: Craig I think you'd have to admit it's been a rather dynamic corridor with the Rei chain bidding to acquire arrived moving as mentioned.
Speaker Change: Jean Luc will take our next question. Please.
Speaker Change: Our next question comes from the line of NGL Rykowski with Evans and partners. Please Amit your line to ask a question.
Speaker Change:
We're in active discussions either Fox tell inactive means active but theres no doubt that that does not remove the disparity between the inherent value of the assets and the value is reflected in the share price I did the math.
Speaker Change: Hi, Robert Hi, Susan.
Speaker Change: And trust of our questions.
All the best for life up to East Coast.
Speaker Change: And the earliest statement in early do you Numerate would not appreciate that the script discrepancy, but there are quite a few moving parts, whether the continuously continuing express growth at the Dow Jones professional information in the cyclicals slump in the U S housing market, which obviously affects realtor and the value of our property portfolio.
Speaker Change: My question too.
Both Fisher looking in advertising at Dow Jones has suffered damage.
Speaker Change: So we obviously acknowledge some of the weakness.
But it took a lot part of the segment.
Speaker Change: These are specific issues or factors, which are causing this and what is your thinking around when we might see a recovery.
Speaker Change: And the Fox sale discussions so.
Speaker Change: Without being sector specific we are indeed looking to maximize value unbelief that.
Speaker Change: And just secondly, the Fox show shareholder lines, I think I've been enrolled side that they have seen a mall ratio for a pilot initiated.
Speaker Change: Value at the moment is not fully represented in the share price, even with the 40% increase in that share price over the past year.
Speaker Change: The cash that way and I see now plus that retirement and apologies if I missed this thank you.
Speaker Change: Interesting during an election period certain companies are a little bit apprehensive about advertising. So we have seen some softness in finance and tech of Dow Jones, but but ive roll up with do bear in mind that use major advertising is.
Speaker Change: Thank you Craig look we'll take our next question. Please.
Speaker Change: Yes, as a reminder, if you'd like to ask a question. Please use the rating functionality to ask question. If you've joined via the audio line. Please press star nine.
Speaker Change: Itself, only 7% of total revenue and more than half of that now.
Speaker Change: Our next question comes from the line of Lucy Huang with UBS. Please on mute and ask your question.
Speaker Change: <unk> digital revenue.
Speaker Change: When you look at.
Speaker Change: Dow Jones in particular, there was a pull in digital revenue.
Hi, Robert and Susan Thanks for taking questions I've, just got one on unprofessional information.
Advertising revenue and a slightly larger falling print advertising, but.
Speaker Change: This ah surfaces. So we didn't change them Grace is kind of is up 8% in the quarter for this business how should we be seen camp at the new rate of Grace meaningful it because I guess last year. This business was growing and alerts maintained and do you think some of the knee.
Speaker Change: Candidly in the current quarter, we are expecting an increase in digital advertising revenue at Dow Jones, and frankly across our unused media properties, including the New York Post UK masked heads and disk drive it.
Speaker Change: Sure. Thanks for your kind words, and just in relation to the Fox headline it is in the filings and it now sits at $545 million shy adults.
Speaker Change: AI and data products that you've released can accelerate right back into that mid teens level over the next couple of months.
Speaker Change: Let's see.
Speaker Change: Thanks Angela.
As you can see risk and compliance revenues are still continuing their express grows at around 16% year on year and there was another 11% expansion at Dow Jones energy and what Youre seeing in the Ah seeming softer growth is.
Speaker Change: Thanks, and Joe look we'll take our next question. Please.
Speaker Change: Our next question comes from the line of Craig Huber with Huber Research. Please on mute to ask your question.
Speaker Change: Yeah, Hi, there likewise Susan.
Speaker Change: The impact of the dispute.
Speaker Change: Factiva, where there was a decline year on year dragging down the overall revenue increase with two things one we have the dispute will be resolved and secondly, the team is working diligently to enhance the user experience is effective.
Speaker Change: Thank you very much for all your help over the years and best of luck to you.
Speaker Change: For News Corp.
Speaker Change: <unk> done a great job.
Speaker Change: Robert.
Speaker Change: Just curious what.
Speaker Change: Yeah.
Standard it's been a year here since you announced your companies looking to optimize structure start to the board of directors.
Speaker Change: We have just announced the search deal with Google, which should improve customers' ability to both retrieve and deploy.
Speaker Change: You made the public announcements or if we're sitting here literally 12 months later and stuff.
Speaker Change: Would you build intelligence and without.
Speaker Change: When should investors expect something materially happened Europe, it's been a full year I mean, why why the delay the delay.
Speaker Change: Being specific about margins overall, pip accounted for 40% of total revenue or well over 50% of Dow Jones profit.
Speaker Change: Because of this Murdoch family issues going through the court system is that whats going in this whole thing I mean, I just can't believe for life for me that you guys would make an announcement and then nothing happen per year. Most of that came out of left field that you were not expecting can you just help us understand what the delay is here. Please.
Speaker Change: And Lucy just.
Speaker Change: To follow up on Robert's comments, the sort of the underlying growth rates within risk and compliance and energy are actually very very healthy as Robert said, that's not cheap tuck T. The dispute has impacted the numbers by about 6% this quarter and say actually if you added the accolade you'd be at the rate that you were sort of expecting and as Robert said, we'll see how that plays out but that's it.
Speaker Change: Craig I think you'd have to admit it's been rather dynamic quarter with Rei chain bidding to acquire rod even as mentioned.
Speaker Change: In Q1.
Speaker Change: Uh huh.
Speaker Change: We're in active discussions either Fox tell inactive means active but.
Speaker Change: Thank you Lucy look we'll take our next question. Please.
Speaker Change: There's no doubt that that does not remove the disparity between inherent value of the assets and the value is reflected in the share price I did the math.
Speaker Change: At this time, we have no further questions I will now hand, it over to Michael Florin for closing remarks, well. Thank you Luke and thank you all for participating look forward to talking to you again soon have a wonderful day.
And the earliest statement and are already in humid would not appreciate that the script discrepancy, but there are quite a few moving parts, whether the continuously continuing express growth at the Dow Jones professional information in the cyclicals slump in the U S housing market, which obviously affects realtor and the value of our property portfolio.
Yeah.
Speaker Change: And the Fox sale discussion so.
Speaker Change: Without being sector specific we are indeed looking to maximize value unbelief that.
Speaker Change: <unk> value at the moment is not fully represented in the share price, even with the 40% increase in that share price over the past year.
Speaker Change: Thank you Craig look we'll take our next question. Please.
Speaker Change: Yes, as a reminder, if you'd like to ask a question. Please is the race and functionality to ask question.
Speaker Change: You've joined via the audio line. Please press star.
Speaker Change: Our next question comes from the line of Lucy Huang with UBS. Please on mute and ask your question.
Speaker Change: Hi, Robert and Susan Thanks for taking questions I've, just got one on unprofessional information.
Speaker Change: Our surfaces. So you didnt changed Grace's kind of is up 8% in the quarter for this business how should we be seen camp at the new rate of growth moving forward, because I guess last year since it was growing and alerts maintained and do you think some of the knee.
Speaker Change: And data products that you've released can accelerate growth back into that mid teens level over the next couple of months.
Speaker Change: Let's see.
Speaker Change: As you can see risk and compliance revenues is still continuing their express growth around 16% year on year and there was another 11% expansion at Dow Jones energy and what Youre seeing in the Ah seeming softer growth is.
Speaker Change: The impact of the dispute at Factiva, where there was a decline year on year dragging down the overall revenue increase with two things.
Speaker Change: One we did.
Speaker Change: The dispute will be resolved and secondly, the team is working diligently to enhance the user experience is effective.
Speaker Change: We have just announced the search deal with Google, which should improve customer's ability to both retrieve and deploy.
Speaker Change: Valuable intelligence.
Speaker Change: And without.
Speaker Change: Being specific about margins overall, pip accounted for 40% of total revenue or well over 50% of Dow Jones profit and.
Speaker Change: And Lucy just.
Speaker Change: To follow up on Robert's comments, the sort of the underlying growth rates within risk and compliance and energy are actually very very healthy as Rupert said, that's not cheap tuck T. The dispute has impacted the numbers by about 6% this quarter and say actually if you added that I called need beyond the rack that you were sort of expecting.
Speaker Change: And as Robert said, we'll see how that to speak plays out but that certainly have the impact in Q1.
Thank you Lucy look we'll take our next question. Please.
Speaker Change: At this time, we have no further questions I'll now hand, it over to Michael Florin for closing remarks.
Michael Florin: Thank you Luke and thank you all for participating.
Michael Florin: Forward to talking to you again soon have a wonderful day.
Michael Florin: Okay.