Q2 2025 News Corp Earnings Call

Operator: I've earnings conference call. Today's conference is being recorded. Media will be allowed on a listen-only basis.

<unk> conference is being recorded media will be allowed on a listen only basis at this time I'd 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'd like to turn the conference over to Michael Florin, Senior Vice President and Head of Investor Relations. Please go ahead.

Michael Florin: Thank you very much, Operator.

Speaker Change: Thank you very much operator, Hello, everyone and welcome to news Corp's fiscal second 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 on the call today are Robert Thomson, Chief Executive and loving Shandra Shaker Chief Financial Officer will all been some prepared remarks.

Michael Florin: Hello, everyone, and welcome to News Corp's fiscal second quarter 2025 earnings call. We issued our earnings press release about 30 minutes ago, and it's now posted on our website at newscorp.com.

Michael Florin: On the call today are Robert Thomson, Chief Executive, and Lavanya Chandrasekhar, Chief Financial Officer. We'll open with some prepared remarks, and I'll be happy to take questions from the investment community. This call may include certain forward-looking information with respect to News Corp's business and strategy. Actual results could differ materially from what is said. 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.

Speaker Change: <unk> they'll be happy to take questions from the investment community. This call may include certain forward looking information with effect 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.

Speaker Change: Looking information. Additionally, this call will include certain non-GAAP financial measurements, such as total segment EBITDA adjusted segment EBITDA and adjusted EPS.

Michael Florin: The definitions and gap-to-non-gap reconciliations of such measures can be found in the hearings releases for the applicable periods posted on our website.

Speaker Change: 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 it over to Robert Thomson for some opening comments.

Robert Thomson: With that, I will pass it over to Robert Thomson for some opening comments. Thank you, Mike. News Corp had yet another fruitful quarter, qualitatively and quantitatively. Revenues on a continuing operations basis, which excludes Foxtel, grew 5% to $2.24 billion, while profitability rose 20% to $478 million, as we made significant progress in our digital development. A few more metrics to highlight our performance. Net income from continuing operations surged to $306 million, a 58% increase compared to the same quarter in the previous year. That is correct, 58%. while our EPS from continuing operations was $0.40, compared to $0.28 in the prior quarter.

Robert Thomson: Thank you, Mike Newschool had yet another fruitful quarter qualitatively and quantitatively revenues on a continuing operations basis, which excludes Fox DAU grew 5% to two point to $4 billion, while profitability rose, 20% to $478 million as we made significant.

Robert Thomson: Progress in our digital development, a few more metrics to highlight our performance net income from continuing operations surged to $306 million, a 58% increase compared to the same quarter in the previous year that is correct, 58%, while our EPS from continuing operation.

Robert Thomson: <unk> was 40 cents compared to 28 cents in the prior quarter and our overall margin rose from 18, 7% to 21, 4%.

Robert Thomson: And our overall margin rose from 18.7% to 21.4%. Our three pillars of growth, digital real estate, Dow Jones and book publishing, continued to expand their segment EBITDA robustly, while we saw the positive impact of rigorous cost discipline and digital development in our news media segment.

Robert Thomson: Our three pillars of growth digital real estate, Dow Jones and book publishing continued to expand this segment EBITA robustly, while we saw the positive impact of rigorous cost discipline and digital development in our news media segment.

Robert Thomson: With a keen eye on our innate strengths, we took a significant step towards simplification with the agreement to sell Foxtel to DAZN, a premier global sports streaming provider, for a total enterprise value of Australian $3.4 billion, or approximately seven times Foxtel's fiscal 2024 EBIT. The agreement is a tangible recognition of Foxtel's successful digital transformation and should surely benefit our shareholders, our partners at DAZN and all Australian sports We expect the transaction to close in the second half of the current fiscal year, subject to regulatory approvals and other customary closing conditions. Hence, Foxtel Financials are now reported as discontinued operations.

Robert Thomson: With a keen eye on every night strengths, we took a significant step towards simplification with the agreement to sell foxtail too does own a premier global sports streaming provider for a total enterprise value of Australia, and $3.4 billion or approximately seven times Fox tells fiscal 'twenty.

Robert Thomson: Twenty-four EBITA.

Robert Thomson: The agreement is a tangible recognition of foxtail successful digital transformation and should surely benefit our shareholders. Our partners at the zone and all Australia and sports fans, we expect the transaction to close in the second half of the current fiscal year subject to regulatory approvals and other customary closing.

Robert Thomson: Conditions, hence foxtail financials are now reported as discontinued operations.

Robert Thomson: The sale of Foxtel should have a meaningful impact on our balance sheet. Upon closing, Foxtel's outstanding shareholder loans will be repaid in full, including $574 million Australian dollars to News Corp, while its third-party debt will be transferred with the business. News Corp will also hold an approximate 6% stake in the fast-growing DAZN. We are proud to be long-term partners with the DAZN team and see material value upside potential in the growth of a company that is at the cutting edge of international sports development. I encourage all to download their app and delve into a vast range of sports.

Robert Thomson: The sale of Fox do should have a meaningful impact on our balance sheet. Upon closing Fox tells outstanding shareholder loans will be repaid in full including 574 million Australian dollars to New school well, It's third party debt will be transferred with the business.

Robert Thomson: Newschool will also hold an approximate 6% stake in the fast growing design. We are proud to be long term partners with the design team and see material value upside potential in the growth of a company that is at the cutting edge of international Sports development I encourage you all to download the App and <unk>.

Robert Thomson: <unk> into a vast range of sports.

Robert Thomson: In the wake of this important deal, we were delighted that both S&P Global and Moody's upgraded our credit rating to investment grade, reflecting the impact of our long-term strategy of focused investment and an emphasis on the return of investment. We certainly lead the way in providing priceless content for generative AI and remain vigilant in our pursuit of degenerative AI and abuses of our intellectual property. We are pleased with our partnership with OpenAI and hope that other companies in the segment take a similarly enlightened approach. Our legal action against the perplexing perplexity is underway, and we look forward with relish to document discovery.

Robert Thomson: In the wake of this important deal we were delighted that both S&P global and Moody's upgraded our credit rating to investment grade, reflecting the impact of our long term strategy of focused investment and an emphasis on return of invested capital.

Robert Thomson: We certainly lead the way in providing priceless content for generative II and remain vigilant in our pursuit of degenerative AI and abuses of our intellectual property.

Robert Thomson: We are pleased with our partnership with open AI and hope that other companies in this segment take a similarly enlightened approach.

Robert Thomson: Legal action against the Perplexing Perplexity is underway and we look forward with relish to document discovery. We firmly believe that this discovery process will be an important phase not just for us, but for all who cherish the sanctity of IP.

Robert Thomson: We firmly believe that this discovery process will be an important phase, not just for us, but for all who cherish the sanctity of IP. The sudden rise of DeepSeek is itself a celebratory lesson for all AI players. If they are unable to host fresh, trusted news, their version of AI will lack immediacy and relevance. Data centres and energy sources and newfangled chips may well be essential AI infrastructure. But, ultimately, we believe content will be king in the world of AI.

Robert Thomson: The sudden rise of deep Sig is itself a solitary lesson for all AI players. If they are unable to host fresh trusted news their version of AI will lack immediacy and relevance data centers and energy sources, and newfangled chips may well be essential AI infrastructure, but ultimately.

Robert Thomson: We believe content will be king in the world of AI.

Robert Thomson: One rather general, generic post-election observation. We are seeing a tangible increase in business confidence here in the U.S. since the election. The temporary turmoil of transactional tariff society. There is the confluence of economic optimism and a cultural awakening, with the yoke of woke having been lifted. We believe these trends should lead to less superfluous gratuitous regulation, greater capital formation, increased opportunities for all Americans, and more candid, creative, compelling conversations. Hopefully, an era of censorship and self-censorship is receding into the future.

Robert Thomson: One rather general generic post election observation, we are seeing a tangible increase in business confidence here in the U S. Since the election, the temporary turmoil of transactional tariffs aside there is a confluence of economic optimism and a cultural awakening with the yolk of woke, having being lifted we believe these trends.

Robert Thomson: <unk> should lead to less superfluous gratuitous regulation greater capital formation increased opportunities for all Americans and more candid creative compelling conversations hopefully an era of censorship and self censorship is receding into the distance.

Robert Thomson: As for specific segments, digital real estate revenue increased 13% to $473 million and segment EBITDA burgeoned 26% to $185 million. That strength came despite significant growth in the prior year quarter at REA and reflected renewed revenue growth at realtor.com, despite the still hostile housing market conditions in the US, with the 30-year mortgage rates above 7% in recent weeks. Clearly, Realtor.com's efforts to strengthen adjacent revenue streams are paying off, with accelerated growth in rental, seller, and new homes revenue. Realtor continues to make significant progress in engagement, as evidenced by the highest repeat visitation and most number of views per visit in the industry in December, as per Comcast.

Robert Thomson: As for specific segments digital real estate revenue increased 13% to $473 million and segment EBITDA Virgin 26% to $185 million.

Robert Thomson: That strength came despite significant growth in the prior year quarter at Rei and reflected renewed revenue growth at realtor dot com. Despite the still hostile housing market conditions in the U S. With a 30 year mortgage rates above 7% in recent weeks clearly realtor dot coms efforts to strengthen adjacent revenue streams are paying off.

Robert Thomson: With accelerated growth in rental seller and new homes revenues realtor continues to make significant progress in engagement as evidenced by the highest repeat visitation and most number of views per visit in the industry in December as per Comscore.

Robert Thomson: At REA, the success story continues as the company achieved a quarterly record in revenue while extending its audience leadership and reinforcing its position as Australia's preeminent property service provider. REA achieved 129 million average monthly visits during the quarter, nearly four times more than the nearest competitor on average. Listing volumes rose 4% with yield growth at 14% while our India division continued to post healthy revenue. At Dow Jones, revenue grew 3% to $600 million. Segment EBITDA expanded 7% to $174 million, and margins rose an impressive 110 basis points. While overall performance in the first half of the fiscal year has been strong, we expect year-over-year growth to increase in the second half of the year.

Robert Thomson: At Rei. The success story continues as the company achieved a quarterly record in revenue, while extending its audience leadership and reinforcing its position as Australia is preeminent property side.

Robert Thomson: <unk> achieved 129 million average monthly visits during the quarter nearly four times more than our nearest competitor on average listing volumes rose, 4% with yield growth at 14%, while our India Division continued to post healthy revenue growth.

Robert Thomson: At Dow Jones revenue grew 3% to $600 million segment, EBITDA expanded 7% to $174 million and margins rose an impressive 110 basis points, while overall performance in the first half of the fiscal year has been strong we expect year over year growth to increase in the second half of the year.

Robert Thomson: In Q2, digital circulation revenue grew year-over-year at its fastest pace in two years, as digital ARPU improved sequentially, and the conversion from introductory promotions and digital bundle offers ran ahead of expectations. Readers derive significant value from our prestige portfolio of The Wall Street Journal, Barron's, IBD and Marketplace. and we believe there is potential for revenue improvement as we emphasise the strength and the distinctiveness of the individual. Risk and Compliance and Dowjoes Energy reported revenue growth of 11% and 10% respectively, and the teams continue to benefit from new products such as Advanced Screening and Monitoring and Analytics Pro that add meaningful value for our compliance-focused risk-averse clients.

Robert Thomson: In Q2 digital circulation revenue grew year over year at its fastest pace in two years as digital up who improved sequentially and the conversion from introductory promotions and digital bundle offers ran ahead of expectations.

Robert Thomson: Readers derive significant value from our prestige portfolio of the Wall Street Journal, Barrons, IBD and market watch and we believe there is potential for revenue improvement as we emphasize the strength and the distinctiveness of individual titles.

Risk and compliance and Dow Jones energy reported revenue growth of 11% and 10% respectively and the teams continue to benefit from new products, such as advanced screening and monitoring and analytics pro that had meaningful value for our compliance focused risk averse clients new.

Robert Thomson: New initiatives contributed about one third of B2B revenue growth this quarter. Now more than ever, Dow Jones risk and compliance clients are navigating rapidly changing regulations and sanctions. This complex environment in the U.S. and globally boosts demand for risk and compliance products as organizations rely on our expert insights and comprehensive data to make informed decisions and to stay compliant. The uncertainty regarding the transactional tariffs is driving demand for Dow Jones Energy's insights and forecasting services, as clients seek to understand the potential impact on global energy markets and investment opportunities.

Robert Thomson: New initiatives contributed about one third of be to be revenue growth this quarter.

Robert Thomson: Now more than ever Dr. Jones risk and compliance clients are navigating rapidly changing regulations and sanctions. This complex environment in the U S and globally boost demand for risk and compliance products as organizations rely on our expert insights and comprehensive data to make informed decisions and.

Robert Thomson: To stay compliant.

Robert Thomson: The uncertainty regarding the transactional tariffs is driving demand for Dow Jones energy insights and forecasting services as clients seek to understand the potential impact on global energy markets and investment opportunities.

Robert Thomson: Book Publishing reported yet another exceptional quarter, with revenue expanding 8% to $595 million, and segment EBITDA surging 19% to $101 million. Growth in the Quarter was powered by strong Bible sales, a sterling performance at HarperCollins UK, and a healthy mix of titles. Margins improved thanks to buoyant sales of backlist books and a particularly noteworthy 13% increase in audio revenue. Among the best-sellers, the Pumpkin Spice Cafe and the first volume of Cher's memoirs were standouts. The successful cinematic release of Wicked that led to strong sales of Gregory Maguire's four-book series, and we anticipate a further boost from the next instalment in their series.

Robert Thomson: Book publishing reported yet another exceptional quarter with revenue expanding 8% to $595 million and segment EBITA searching 19% to $101 million gross in the quarter was powered by strong Bible sales I Sterling performance at Harpercollins U K and a healthy mix of titles.

Robert Thomson: Margins improved thanks to buoy and sells a backlist books, and a particularly noteworthy 13% increase in audio revenue.

Robert Thomson: Among the best sellers, the Pumpkin Spice Cafe and the first volume of shares memoirs were standouts. These successful cinematic release of weaker it has led to strong sales of Gregory Maguire for book series, and we anticipate a further boost from the next installment in the series the positive cycle. We should continue with the release of the hit film sequel.

Robert Thomson: The positive cycle should continue with the release of the hit film sequel later this calendar year.

Robert Thomson: Later this calendar year.

Robert Thomson: At News Media, revenue fell a modest 2% to $570 million, but segment EBITDA grew an impressive 30% to $74 million. Success in the quarter was driven by the transition of talk in the UK to streaming and our commercial printing partnership with DMG, as well as reduced costs at News Australia. Overall, AdTrends moderated, while The Times posted its largest quarterly net additions of paid digital subscriptions in two years. Digital advertising grew by 13% at the New York Post, where profitability was also assisted by our OpenAI deal. News media generally has clearly benefited from those open AI revenues and we are pleased with the progress in our partnership with Sam Altman and his exceptional colleagues.

Robert Thomson: At news media revenue fell a modest 2% to $570 million, but segment EBITA grew an impressive 30% to $74 million success in the quarter was driven by the transition of talk in the U K to streaming and our commercial printing a partnership with the M G as well as reduced costs at news Australia.

Robert Thomson: Overall AD trends moderated while the times posted its largest quarterly net additions of paid digital subscriptions in two years did.

Robert Thomson: Digital advertising grew by 13% at the New York Post where profitability was also assisted by our open ideal.

Robert Thomson: Use media generally has clearly benefited from those open II revenues and we are pleased with the progress in our partnership with Sam Edelman and his exceptional colleagues.

Robert Thomson: Content is but one part of a broad deal and, for example, our legal and government affairs teams are swapping ideas and experiences as we negotiate the nuances of AI. As part of our partnership, News Corp content will be featured in OpenAI's new operator product, ensuring prominence for our journalism in the burgeoning world of agentic AI. Both companies are striving to ensure that the A in AI does not stand for anarchy, unalphabetic or absurdity.

Robert Thomson: Content is but one part of a broad deal and for example, our legal and government affairs teams are swapping ideas and experiences as we negotiate the nuances of AI as part of our partnership musical content will be featured in open a new operator product ensuring prominence for alger and rhythm in the.

Robert Thomson: Burgeoning world of Agentic AI.

Robert Thomson: Companies are striving to ensure that the a in AI does not stand for anarchy in alphabetic or absurdity.

Robert Thomson: In a world in which so many media companies and mastheads are in terminal decline, our business is thriving, thanks certainly to the diligent and creative work of our talented teams and the savvy strategic guidance of Lachlan and Rupert Murdoch and our astute Board of Directors.

Robert Thomson: In a world in which so many media companies and bastards are in terminal decline our business is thriving thanks, certainly to the diligent and creative work of our talented teams and the savvy strategic guidance of Lachlan and Rupert Murdoch and our student board of directors.

Lavanya Chandrasekhar: Speaking of talent, I am honoured to introduce our new Chief Financial Officer, Lavanya Chandrasekhar, who will eloquently expand on the exegesis. Thank you, Robert, for the kind introduction. I'm delighted to be with all of you today and look forward to meeting many of you in the coming months. I'm excited to join News Corp amid the company's continued impressive digital evolution. As Robert mentioned in December, we announced an agreement to sell Foxtel to DAZN, which for News Corp will allow for a greater focus on our core growth pillars, will meaningfully strengthen our balance sheet, and should reduce our future capital intensity.

Speaker Change: Speaking of talent I am honored to introduce our new Chief Financial Officer, Lovinger Chandra Shaker, who will eloquently expand on the exegesis.

Speaker Change: Thank you Robert for the kind introduction.

Speaker Change: I'm delighted to be with all of you today and look forward to meeting many of you in the coming months.

Speaker Change: I'm excited to Chinese copper met the company's continued impressive digital evolution.

Robert Thomson: As Robert mentioned in December we announced an agreement to sell Fox style to disown, which for news Corp will allow for a greater focus on our core growth pillars will meaningfully strengthen our balance sheet and should reduce our future capital intensity.

Lavanya Chandrasekhar: turning to the quarter. Foxtel's financial results are reflected as discontinued operations for fiscal 2025 and 2024 second quarter and year-to-date periods and subscription video service is no longer a reportable segment. I will not speak to Foxtel's results on this call and they are excluded from the numbers I will be discussing today, but more information will be available in the 10Q to be filed tomorrow morning. We will also be filing an 8K with Recast Historic Financial Information. News Corp reported fiscal second quarter revenues on a continuing operation basis of $2.2 billion, rising 5% year-over-year, and total segment EBITDA of $478 million, increasing 20% year-over-year.

Speaker Change: Turning to the quarter.

Speaker Change: Foxtons financial results are reflected as discontinued operations for fiscal 2025, and 2020 for second quarter and year to date periods.

Speaker Change: In subscription video services is no longer a reportable segment.

Speaker Change: We'll not speak to Fox tells results on this call and they are excluded from the numbers I will be discussing today, but more information will be available in the 10-Q to be filed tomorrow morning.

Speaker Change: We will also be filing an 8-K with recast historical financial information.

Speaker Change: News Corp reported fiscal second quarters avenues on a continuing operations basis of $2.2 billion by some 5% year over year, and total segment EBITDA of $478 million, increasing 20% year over year.

Lavanya Chandrasekhar: Margins improved by nearly 270 basis points to 21.4%. The three core pillars, Dow Jones, digital real estate, and book publishing, collectively grew revenue by 7% and segment EBITDA by 16%. Second quarter adjusted revenues rose 4% compared to the prior year, with the difference from reported primarily due to currency impact, while adjusted total segment EBITDA rose 20% versus the prior year. For the quarter, we reported earnings from continuing operations per share of $0.40 compared to $0.28 in the prior year. Adjusted earnings from continuing operations per share were $0.33 in the quarter compared to $0.27 in the prior year.

Speaker Change: Margins improved by nearly 270 basis points to 21, 4%.

Speaker Change: The three core pillars, Dow Jones digital real estate and book publishing collectively grew revenue by 7% and segment EBITDA by 16%.

Speaker Change: Second quarter, adjusted revenues rose, 4% compared to the prior year with the difference from reported primarily due to currency impact while adjusted total segment EBITDA rose 20% versus the prior year.

Speaker Change: For the quarter, we reported earnings from continuing operations per share or 40 cents compared to 28 cents in the prior year.

Speaker Change: Adjusted earnings from continuing operations per share were 33 cents in the quarter compared to 27.

Speaker Change: In the prior year.

Lavanya Chandrasekhar: Moving to the individual segments, starting with Dow Jones. Dow Jones reported revenues of $600 million, up 3% year-over-year, similar to the first quarter, and was, again, the largest segment contributor to overall company revenues. Digital revenue accounted for 81% of total Dow Jones segment revenue this quarter, improving 3 percentage points from last quarter. Overall, professional information business revenue, which reflects our B2B products, rose 4% year-over-year, notwithstanding an over 300 basis point adverse impact from Factiva, primarily due to the ongoing customer dispute that we mentioned last quarter, with the impact greater in the second quarter. This quarter, the growth came from new customers, new products, and improved yield at risk and compliance, which grew 11% to $80 million, including a modest negative effects impact due to European exposure, and Dow Jones Energy, which grew 10% to $68 million, with customer retention remaining very strong at over 90%.

Speaker Change: Moving to the individual segments, starting with Dow Jones.

Speaker Change: Dow Jones reported revenues of $600 million up 3% year over year similar to the first quarter and was again the largest segment contributed to overall company's Anthony ditch.

Speaker Change: Digital revenue accounted for 81% of total Dow Jones segment revenue this quarter, improving three percentage points from last year.

Speaker Change: Overall professional information business Avenue, which reflects our b to b products rose, 4% year over year, notwithstanding an over 300 basis point adverse impact from Factiva, primarily due to the ongoing customer dispute that we mentioned last quarter with the impact greater in the second quarter.

Speaker Change: This quarter the growth came from new customers, new products and improved yield at risk and compliance, which grew 11% to $80 million, including a modest negative FX impact due to European exposure.

Speaker Change: And Dow Jones energy, which grew 10% to $68 million with customer retention remaining that is strong at over 90%.

Lavanya Chandrasekhar: During the quarter, Risk & Compliance enhanced its product offerings with the acquisition of WorldECR, a London-based provider of export control and trade sanction news. And in energy, we continue to see strong demand for newer products associated with carbon, retail fuels, and liquefied petroleum gas, and experience robust pipelines and strong closing rates. Within the Dow Jones consumer business, circulation revenues rose 3% versus the prior year, benefiting from improved digital circulation revenues of 8%, double the quarter one rate, and the highest quarterly growth in two years. We have started to benefit from the conversion to higher pricing from our digital subscriptions added in the past year via introductory promotional offers.

Speaker Change: During the quarter risk and compliance enhanced its product offerings with the acquisition of World ECR and London based provider of export control and trade sanction use.

Speaker Change: And in energy, we continued to see strong demand for newer products associated with carbon retail fuels and liquefied petroleum gas and experienced robust pipelines and strong closing rates.

Within the Dow Jones consumer business circulation revenues rose, 3% versus the prior year benefiting from improved digital circulation revenues of 8%.

Speaker Change: Double the quarterly run rate and the highest quarterly growth in two years.

Speaker Change: We have started to benefit from the conversion to higher pricing from our digital subscriptions added in the past year by introductory promotional offers.

Lavanya Chandrasekhar: Digital ARPU also increased quarter over quarter. Digital circulation revenues accounted for 73% of circulation revenues for the quarter, up from 70% in the prior year. Digital-only subscriptions improved by 13% year-over-year and by 27,000 sequentially, negatively impacted by the phasing of marketing promotions and seasonality, particularly related to students and some industry headwinds from search algorithms. That said, we do expect stronger volumes in the third quarter. Bundling subscriptions for the quarter improved by 45% year-over-year to over $950,000, while also benefiting from improved yield, with the focus on the three-product bundle of Wall Street Journal, MarketWatch and Barrel.

Speaker Change: Digital auto also increased quarter over quarter.

Speaker Change: Digital circulation revenues accounted for 73% of circulation revenues for the quarter up from 70% in the prior year.

Speaker Change: Digital only subscriptions improved by 13% year over year and by 27000 sequentially negatively impacted by the phasing of marketing promotions and seasonality, particularly related to students and some industry headwinds from search algorithms.

Speaker Change: That said, we do expect stronger volumes in the third quarter.

Speaker Change: Bundling subscriptions for the quarter improved by 45% year over year to over 950000, while also benefiting from improved yield with the focus on the three product bundle of Wall Street Journal Marketwatch and balance.

Lavanya Chandrasekhar: Print volume declined by 16% year over year, but its sequential decline was the lowest since the fourth quarter of fiscal 2021. Advertising revenue of $121 million, moderated from the prior quarter to a decline of 4% year over year, as print declined 10% with digital flat, an improvement from the first quarter. Digital represented 64% of advertising revenues, up from 62% last year. Dow Jones segment EBITDA for the quarter grew 7% to $174 million, with margins increasing to 29%.

Speaker Change: Volume declined by 16% year over year, but it's sequential decline was the lowest since the fourth quarter of fiscal 2021.

Advertising revenue of $121 million moderated from the prior quarter to a decline of 4% year over year.

Speaker Change: Expense declined 10% with digital flat an improvement from the first quarter <expletive>.

Speaker Change: Digital represented 64% of advertising revenues up from 62% last year.

Speaker Change: Dow Jones segment EBITDA for the quarter grew 7% to $174 million with margins increasing to 29%.

Lavanya Chandrasekhar: Moving on to digital real estate. Digital real estate had another exceptional quarter with segment revenues of $473 million, up 13% versus the prior year, and 12% on an adjusted basis. Segment EBITDA was $185 million, up 26%, driven by higher profit contribution from REA Group, the highest growth since 2021. Adjusted segment EBITDA grew 25%. REA had an outstanding quarter, with revenues rising 17% year-on-year to $343 million, marking its highest-ever quarterly revenue on record. Growth was again driven by a combination of residential yield increases, continued strong growth in national listings, and customer contract upgrades. Residential yield growth improved by 14%.

Speaker Change: Moving on to digital real estate.

Speaker Change: Digital real estate had another exceptional quarter with segment revenues of $473 million up 13% versus the prior year and 12% on an adjusted basis.

Speaker Change: Segment, EBITDA was $185 million up 26% driven by higher profit contribution from our <unk> group the highest growth since 2021.

Speaker Change: Adjusted segment EBITDA grew 25%.

Speaker Change: <unk> had an outstanding quarter with revenues rising 17% year on year to $343 million, marking its highest ever quarterly revenue on record.

Speaker Change: Growth was again driven by a combination of less tension yield increases continued strong growth in national listings and customer contract upgrades.

Speaker Change: Residential <unk> growth improved by 14% new buy listings rose approximately 4% with Sydney and Melbourne, each up 2%.

Lavanya Chandrasekhar: New buy listings rose approximately 4% with Sydney and Melbourne each up 2%.

Lavanya Chandrasekhar: Please refer to REA's earnings release and their conference call for more details. Realtors' revenue for the quarter of $130 million were up 2% compared to the prior year, marking the first year-over-year improvement since the fourth quarter of fiscal 2022. At Realtor, real estate revenues were essentially flat, as lower referral and lead generation revenues were largely offset by accelerating growth from adjacent sectors. Lead volumes fell 2% while average monthly unique users for the quarter fell 6% year-over-year to 62 million at realtor.com. However, Realtor continues to maintain strong audience share despite much higher competitive marketing spend, underscoring the strength and quality of their audience.

Speaker Change: Please refer to <unk> earnings release, and their conference call for more details.

Speaker Change: Rialto 70 for the quarter of $130 million were up 2% compared to the prior year, marking the first year over year improvement since the fourth quarter of fiscal 2022.

Speaker Change: Actually a top real estate revenues were essentially flat as lower left real and lead generation revenues were largely offset by accident ratings growth from Adjacencies.

Speaker Change: Lead volumes fell 2%, while average monthly unique users for the quarter down 6% year over year to $62 million at realtor Dot com.

Speaker Change: However, Rialto continues to maintain strong audience share despite much higher competitive marketing spent underscoring the strength and quality of that audience.

Lavanya Chandrasekhar: Realtor also continued to show strong traction on new revenues as seller, new home and rentals represented 20% of revenues and we anticipate continued strong growth in these adjacencies going forward this fiscal year.

Speaker Change: Rialto also continued to show strong traction on new revenues as seller, new home and renters represented 20% of revenues and we anticipate continued strong growth in decent Jason sees going forward this fiscal year.

Yeah.

Lavanya Chandrasekhar: At Book Publishing, momentum from the prior year continued with the year-over-year growth, improving from first quarter with revenues of $595 million, up 8%, while segment EBITDA improved by 19% to $101 million.

Speaker Change: At book publishing momentum from the prior year continued with a year over year growth improving from first quarter with revenues of $595 million up 8%, while segment EBITDA improved by 19% to $101 million.

Lavanya Chandrasekhar: Margins expanded by 150 basis points to 17% as positive operating leverage was underpinned by strong digital and backlist performance. We saw strong growth in Christian publishing from higher Bible sales and very strong sales in the UK, as Robert mentioned. Harper continued to benefit from strong physical book orders and continued robust audio book growth across all regions. HarperCollins posted digital revenues of $120 million, increasing 9% from the prior year, driven by strong audiobook growth across all regions, including increased adoption at Spotify and increased performance from Audible. In total, digital sales represented 21% of consumer revenue in line with the prior year.

Speaker Change: Margins expanded by 150 basis points to 17% as positive operating leverage was underpinned by strong digital and backlist performance.

Speaker Change: We saw strong growth in Christian publishing from higher Bible sales and very strong sales in the U K as Robert mentioned.

Speaker Change: Harper continues to benefit from strong physical book orders and continued robust audio book growth across all regions.

Speaker Change: Harper Collins post to digital revenues of $120 million, increasing 9% in the prior year driven by strong order book growth across all regions, including increased adoption at Spotify and increased performance from audible.

Speaker Change: In total digital sales represented 21% of consumer revenue in line with the prior year.

Lavanya Chandrasekhar: Audiobooks grew 13% year-over-year, a slower rate than quarter one, as we began to lap the initial rollout from Spotify in the UK, Australia, and US. The backlist contributed 61% of consumer revenues, up from 60% last year.

Speaker Change: Audio books grew 13% year over year, a slower rate than quarter, one as we began to lap the initial rollout from Spotify in the U K, Australia and U S.

The backlist contributed 61% of consumer revenues up from 60% last year.

Lavanya Chandrasekhar: Turning to news media, overall revenue performance improved from the first quarter with advertising declines moderating and the segment benefited from increased cover prices and subscription pricing across mass media. Revenues for the quarter were $570 million, down 2% versus the prior year, while adjusted revenues fell 3%.

Speaker Change: Turning to news media.

Speaker Change: Overall revenue performance improved from the first quarter with advertising declines moderating and the segment benefited from increased cover prices and subscription pricing across Massachusetts.

Speaker Change: Revenues for the quarter were $570 million down 2% versus the prior year, while adjusted revenues fell 3%.

Lavanya Chandrasekhar: Note that both periods were recast to include the contribution from Sky News Australia, which previously had been included in the subscription video service segment. Sky News contributed $17 million in revenues, flat compared to the prior year. Segment EBITDA showed strong improvement, rising 30% year-over-year, driven by cost-savings initiatives, as we mentioned last quarter, most notably at the UK, from the benefits of the commercial printing joint venture with DMG Media, and lower top costs. Adjusted segment EBITDA increased 28%.

Note that both periods were recast to include the contribution from Sky News, Australia, which previously had been included in the subscription video services segment Sky.

Speaker Change: Sky News contributed $17 million since avenues flat compared to the prior year.

Speaker Change: Segment, EBITDA showed strong improvement rising 30% year over year, driven by cost savings initiatives as we mentioned last quarter.

Speaker Change: Most notably at the U K and the benefits of the commercial printing joint venture with DMT media and lower costs.

Speaker Change: Adjusted segment EBITDA increased 28%.

Lavanya Chandrasekhar: Turning to the Outlook. Market trends remain mixed geographically, and given the current spot rates for the Australian dollar and pound sterling versus the U.S. dollar, we expect currency translation to be a headwind in the second half.

Speaker Change: Turning to the outlook.

Speaker Change: Market trends remain mixed geographically.

Speaker Change: And given the current spot rates for the Australian dollar and pound Sterling versus the U S. Dollar, we expect currency translation to be a headwind in the second half.

Lavanya Chandrasekhar: and some of the teams across each of our sectors. At Dow Jones, the team remains focused on B2B growth, including upselling and new products across risk and compliance and Dow Jones Energy. As Robert mentioned, for total Dow Jones, we expect to see improvement in growth in the second half. We expect expenses to be modestly higher year over year due to investment, notably in B2B. However, we will continue to focus on cost efficiencies to drive growth.

Speaker Change: Some of the teams across each of our segments.

Speaker Change: At Dow Jones, the team remains focused on b to b growth, including Upselling, and new products across risk and compliance and Dow Jones energy.

Robert Thomson: As Robert mentioned for total Dow Jones, we expect to see improvement in growth in the second half.

Robert Thomson: We expect expenses to be modestly higher year over year due to investment, notably in B to B. However, we will continue to focus on cost efficiencies to drive growth.

Lavanya Chandrasekhar: At Digital Real Estate, Australian residential new buy listings for January were up 3%. refer to REA for more detailed outlook comments. Realtor.com will continue to focus on technology improvements and enhance content and product offerings with the goal to be best positioned to drive share when the housing market recovers. We hope to see some revenue improvement, notably from continued growth from adjacencies, but continue to monitor macro trends. We currently expect the rate of reinvestment to be modestly higher in the second half as we continue to focus on growth initiatives.

Robert Thomson: At digital real estate Australian residential new buy listings for January were up 3%.

Robert Thomson: That's like the audio for more detailed outlook commentary.

Robert Thomson: Rialto Dot com will continue to focus on technology improvements and enhanced content and product offerings with the goal to be best positioned to drive share when the housing market recovers.

Robert Thomson: We hope to see some revenue improvement, notably from continued growth from Adjacencies, but continue to monitor macro trends.

Robert Thomson: We currently expect the rate of reinvestment to be modestly higher in the second half as we continue to focus on growth initiatives.

Lavanya Chandrasekhar: At Book Publishing, as mentioned last quarter, we hope to see further profit improvement in FY2025, albeit likely at a much more modest rate due to difficult prior comparisons, and Q3 will be impacted by facing a frontlist release At News Media, while we expect the segment to continue to benefit from lower talk TV costs together with savings associated with the new commercial printing joint venture with DMG in the UK, advertising conditions remain difficult with limited visibility and coupled with Forex headwinds, we anticipate a more challenging second half. As mentioned last quarter, we expect other segment costs to be higher than last year, including ongoing AI and related legal costs.

Robert Thomson: At book Publishing as mentioned last quarter, we hope to see further profit improvement in fiscal 2025, albeit likely at a much more modest rate due to difficult prior year comparisons and quarter three will be impacted by phasing of frontlist releases.

Robert Thomson: At news media, while we expect the segment to continue to benefit from lower talk TV costs together with savings associated with the new commercial printing joint venture with DMT in the U K advertising conditions remain difficult with limited visibility and coupled with Forex headwinds, we anticipate a more challenge.

Robert Thomson: <unk> second half.

Robert Thomson: As mentioned last quarter, we expect the other segment cost to be higher than last year, including ongoing AI and related legal costs.

Michael Florin: With that, let me hand it over to the operator for Q&A. 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 raise hand functionality to ask a question. If you've joined via the audio line, please press star 9 to raise your hand and star 6 to unmute once called upon. Questions will be answered in the order they are received. We will now pause for a moment to assemble the queue.

Robert Thomson: With that let me hand, it over to the operator for Q&A.

Robert Thomson: Okay.

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

Speaker Change: Joining me the zoom application. Please use the raise hand functionality to ask a question.

Speaker Change: If you have joined via the audio line.

Speaker Change: Star nine to raise your hand and star six to Amit once called upon.

<unk> will be answered in the order they are received.

Speaker Change: We'll now pause for a moment to assemble the queue.

David Karnovsky: Okay, our first question will come from David Karnovsky with JPMorgan. Please unmute your line and ask your question.

Speaker Change: Okay.

Speaker Change: Our first question will come from David Karnofsky with J P. Morgan. Please UN mute your line and ask your question.

David Karnovsky: Hi, thank you.

David Karnofsky: Alright. Thank you just maybe on the box Hill deal one see if you could discuss a bit the structure here and reasoning.

David Karnovsky: Just maybe on the Box Hill deal, want to see if you could discuss a bit the structure here and reasoning to take the zone equity as payment, and maybe your view on the asset.

Speaker Change: Take this own equity as payment and maybe your view on the asset and then following this Robert it'd be great to get your updated view on the overall news Corp structure and can you say at this point. If you are still engaged in an overall strategic review. Thank you.

David Karnovsky: And then following this, Robert, it would be great to get your updated view on the overall News Corp structure. And can you say at this point, if you're still engaged in an overall strategic review?

Robert Thomson: David, obviously the deal is subject to the usual regulatory approvals, in particular that of the Foreign Investment Review Board and the ACCC in Australia, and we're providing whatever information these important agencies require. We do expect that the deal will formally close this fiscal, but I should emphasise that we will be close partners with the Zone, whose team we've found to be particularly impressive, and I think it's fair to say that they've found the Foxtel team to be particularly important. Essentially, you have the marriage of two world-class companies, and together they'll be more than the sum of their parts.

Speaker Change: David obviously the deal is subject to the usual regulatory approvals in particular out of the foreign investment review Board Nigel seed in Australia, and we're providing whatever information is important agencies require we do expect it to do formally close this fiscal.

Speaker Change: But I should emphasize that we will be close partners with design, whose team we've found to be particularly impressive but I think it's fair to say that I have found the Fox tells him.

Speaker Change: To be particularly impressive.

Speaker Change: Essentially you have the marriage of two world class companies and together there'll be more than the sum of the parts.

Robert Thomson: As for structural reform, the Foxtel deal itself should reinforce the sense that we are constantly reviewing our portfolio. And that deal is eloquent testimony that we don't just review, we act decisively. We are conscious of maximising returns for our shareholders, and the improved returns have certainly come from abcasting of bolstering our core pillars and, that is reflected in our share price. Not entirely, obviously, but somewhat. I'm sure you're aware that our shares have risen more than 26% over the process.

Speaker Change: As for structural reform.

Speaker Change: Fox Hill deal.

Speaker Change: Self should reinforce the sense that we are constantly reviewing our portfolio and that deal is eloquent testimony that we don't just reviewed we act decisively.

Speaker Change: We are conscious of maximizing returns for our shareholders and improve returns of certainly come from buttressing of bolstering our core pillars and that is reflected in our share price is not entirely obviously, but some word I'm sure you're aware that our shares have risen more than 26% of the past six months.

David Karnovsky: Thank you, Dave.

Speaker Change: Thank you.

Kane Hannan: Luke, we will take our next Our next question will come from Kane Hannan with Goldman Sachs.

Dave look we will take our next question.

Our next question will come from Kane Hannan with Goldman Sachs. Please ask your question.

Kane Hannan: Please unmute and ask your question. Morning guys, maybe just the comments in the introduction, Robert, around Dow Jones earnings growth accelerating in the second half, despite the expectations for more OPEX growth in the second half.

Kane Hannan: Hey, good morning, guys.

Kane Hannan: Maybe just to comment on any instruction Robert around Dow Jones earnings growth accelerating in the second half.

The expectations for more exports during the second half just talk a little bit more about what's driving that.

Robert Thomson: Just talk a little bit more about what's driving that, is that the factiva, impact dropping away, the improving subscriber trends you called out of the journal, so let's just help us understand what gives you the confidence in the improving second half. Well, Kane, I think it's a combination of two things, the Dow Jones circulation trends, the total subs were up 9% at around 5.9 million, digital only up 13%. And we're very focused there on average revenue per subscriber and are seeing positive trends as the Dow Jones dynamic pricing strategy unfolds. And that was reflected in the overall 3% increase in circulation revenues, despite a continuing fall in print circulation revenue, to be candid.

Kane Hannan: The backdrop, you're way improving subscriber trends you called out at the journal. So its just help us understand what gives you the confidence in the improved second half.

Speaker Change: Well, Ken I think it's a combination of two things the Dow Jones circulation trends. The total subs were up non centered around $5 9 million digital only up 13% and we're very focused there on average revenue per subscriber and are seeing positive trends as the Dow Jones dynamic pricing strategy unfolds.

Speaker Change: And that was reflected in the overall, 3% increase in circulation revenues. Despite a continuing fall in print circulation revenue to be candid. So digital circ revenues were up 8%.

Robert Thomson: So digital CERC revenues were up 8%. uh...

Robert Thomson: and the Dow Jones team is generally confident that the phasing of subscribers from discounted entry-level offers to more standard pricing is proceeding well and we will see that If I could just add to that, Robert, I mean, Kane, one of the things we need to remember is that the second half generally tends to be the time when we have more additions in any case.

Speaker Change: And the Dow Jones team is generally comfortable with the phasing of subscribers from discounted entry level offers to more standard pricing is proceeding well and we will see that reflected in ensuing months and then at the Pip.

Speaker Change: Clearly, our risk and compliance and Dow Jones energy.

Speaker Change: Both very well and we have full confidence in him.

Speaker Change: If I could just add to that drop it.

Speaker Change: Okay, and one of the things we need to remember is that the second half generally tends to be the time when we have more additions in any case.

Kane Hannan: personality piece that Thank you, Kane.

Speaker Change: Seasonality piece that as well which was up.

Kate: Thank you Kate.

Jason Bazinet: Luke, we'll take our next question. Our next question will come from Jason Bazinet with Citi.

Speaker Change: Jean Luc will take our next question. Please.

Speaker Change: Our next question will come from Jason Bazinet with Citi. Please on mute and ask your question.

Jason Bazinet: Please unmute and ask your question. I just had a question for Mr. Thomson. Given that it's a year into this Spotify deal, can you just remind us what you are hoping to achieve with that agreement? And then based on consumer behavior, sort of a year in, what lessons, if any, have you learned so far?

Speaker Change: A question for Mr. Thompson, given that it's a year into this Spotify deal can you just remind us what you were hoping to achieve.

Speaker Change: With that agreement and then based on.

Speaker Change: Consumer behavior sort of a year and what lessons if any have you learned so far.

Robert Thomson: Jason Webb are very proud of the partnership with Spotify, which I think itself has changed the audio book market and the broad trends there remain in place now. The audience is expanding and audio overall was 13% higher and dare I say even the e-books were 6% higher after a couple of years of relatively sluggish sales. I think what we are seeing is a change in consumer behavior and adaptation by both Spotify and Audible for that increased audience and dare I say we are the beneficiary.

Speaker Change: Jason we're very proud of the partnership with Spotify, which I think itself has changed the audio book market.

And the broad trends remain in place now.

Speaker Change: The audience is expanding.

Speaker Change: Audio overall was 30% higher than a dare I say, even the ebooks were 6% higher after a couple of years of relatively.

Speaker Change: Sluggish sales I think what we are seeing is a change in consumer behavior.

Speaker Change: And adaptation by both Spotify.

Speaker Change: And the order book for that.

Speaker Change: <unk> audience.

Speaker Change: Dare I say, we are the beneficiaries of that.

Speaker Change: Thank you Jason Luke we will take our next question. Please.

Entcho Raykovski: Luke, we will take our next question. Our next question will come from Entcho Raykovski with Evans and Partners. Please unmute and ask your question. Hi Robert, hi Lavinia. My question is just around the expected use of the proceeds from the Foxdale sale. I appreciate the transaction is yet to close, but you'll get some money as part of the shareholder loan repayment. So do you expect that presents some scope for capital management, or is your intention to reinvest those proceeds? And I don't know as part of that answer if you can give us any sort of broad guidance on where you expect CapEx to trend going forward post-completion of the sale.

Speaker Change: Our next question will come from NPI Rykowski with Evans and partners. Please ask your question.

Speaker Change: Hi, Robert Hi, Lavinia.

Rykowski: My question is surrounding the <unk>.

Rykowski: Expected use of the proceeds from the Fox they'll file operation the transaction is yet to Claus, but you'll get some money as part of the shareholder line retirement.

Rykowski: Do you expect that presents some skype for capital management.

Rykowski: Your intention to reinvest those proceeds and all of that now as part of that and see if you can give us any sort of broad guidance on where you expect capex to trend going forward post completion of the sale. Thank you.

Entcho Raykovski: Thank you.

Robert Thomson: Well Entcho, clearly we are absolutely focused on generating maximum value long-term for our shareholders. We have a billion dollar buyback provision in place and you can see from our disclosures that that buyback is well underway and as well as that we have the dividend payments. So we're extremely conscious of shareholder returns and returning to shareholders. I mean last fiscal we returned 70 percent of our available free cash flow through the buyback. And clearly, the significant increase in our free cash flow in recent years has given us optionality and the upgrades to investment grade by both Moody's and S&P Global in recent days reflect that reality.

Rykowski: Uh huh.

Rykowski: Really we are absolutely focused on generating maximum value long term for our shareholders. We have one.

Rykowski: $1 billion buyback provision in place and you can see from our disclosures that the debt buyback is well underway as well as that we have the dividend payments. So we're extremely conscious of shareholder returns and returning to shareholders. We last fiscal we returned 70% of our available free cash flow through the buyback in <unk>.

Rykowski: Clearly the significant increase in our free cash flow in recent years has given us optionality on the upgrades to investment grade by both Moody's and S&P peak.

Rykowski: <unk> global in recent days reflect that reality, but we will go on being conscious about Judy to shareholders, but we do so from a position of strength.

Robert Thomson: But we will go on being conscious of our duty to shareholders, but we do so from a position of strength.

Rykowski: Yeah.

Rykowski: Thank you and Joe look we will take our next question. Please.

David Joyce: Luke, we will take our next question. Our next question will come from David Joyce with Seaport Research, please unmute and ask your question.

Speaker Change: Our next question will come from David Joyce with Seaport Research. Please on mute and ask your question.

David Joyce: Thank you. I appreciated your outlook for the back half of the year.

Rykowski: Thank you.

Rykowski: Sure.

Rykowski: Oh look.

The back half of the year could you provide some more color, though on the timing of.

David Joyce: Could you provide some more color, though, on the timing of when we would be lapping the price increases at Dow Jones on the consumer and professional services side, and also when you would expect the new products to be coming online at the REA and contributing there.

Rykowski: When we will be lapping the price increases at Bell Jones on the consumer and professional services side and also when.

Rykowski: When you would expect the new products to be coming online.

Rykowski: And contributing there.

David Joyce: Then finally, on book publishing, if you have a more of an outlook over the next few quarters of significant titles that would be released, that would be Drivers. Thank you.

Rykowski: Then finally on book publishing.

Rykowski: You have more of an outlook over the next few quarters of significant titles that would be released there would be drivers. Thank you.

Robert Thomson: I think we've given as much guidance as we can on the likely trajectory for Dow Jones and pricing. Essentially what you are seeing, by the way, there is the increase in digital, which led to 81% of our revenues being generated through digital, compared to 78% last year. And secondly, the continuing influence through the expansion of the PIV business relative to the entire business. The impact of that higher margin business on our profitability is quite obvious. The margin at Dow Jones rose from 27.9% to 29%, and there's every reason to believe in coming months and quarters and years, dare I say, that as PIV takes a larger share of revenue, that margin will continue to expand.

Rykowski: Well I think we've given as much guidance as we can on the likely trajectory for for Dow Jones and crossing but essentially what you are seeing by the way there is the.

Rykowski: The increase in digital and <unk>, which led to 81% of our revenues are being generated through digital compared to 78%.

Rykowski: Last year, and secondly, the continuing influence or through the expansion of the of the Pip business relative to the entire business.

Rykowski: The impact of that higher margin business on a profitability that is quite obvious the module at Dow Jones rose from 27.9% to 29% and there's every reason to believe in coming months and quarters and years. This dare I say that as people takes a largest share of revenue that margin will continue to.

Rykowski: Baird.

Robert Thomson: As for the books business... We have a full roster, as always, at HarperCollins, the books that Lavinia and I mentioned, but also we have a very strong backlist there, the value of which is sometimes underestimated by certain analysts. Through the years, we have been working diligently on bolstering that backlist, which tends to be more profitable, obviously enough, and it's not insignificant that the backlist share rose from 60% to 61% of total sales in the most recent quarter. That backlist is a platform for future growth. I think just to add to that, just to, on Harper, I mean what we have guided to on the second half is that, you know, growth will be moderated.

Rykowski: As for the for the books business.

Rykowski: We have.

Rykowski: <unk>.

Rykowski: A full roster as always it is Harper Collins the books.

Rykowski: And I I mentioned, but also.

Rykowski: We have a very strong backlist, which has some the value of which is sometimes underestimated by certain analysts.

Rykowski: And through the years, we have been working diligently on bolstering that back with switch, which tends to be more profitable, obviously enough and it's not insignificant the backwards share rose from 60% to 61% of total sales in the most recent quarter that backlist as a platform for future growth.

Rykowski: Just to add to that just to the.

Rykowski: HOKA.

Rykowski: What we have guided to in the second half is that.

Rykowski: That growth will be moderating because we've had more facing off the off the frontlist into the first half of the year.

Robert Thomson: had more facing off the front list into the first half.

Rykowski: So that's just something to keep in mind.

Rykowski: Thank you.

Craig Huber: Luke, we will take our next question. Our next question will come from the line of Craig Huber with Huber Research.

David Karnofsky: David look we will take our next question. Please.

Speaker Change: Our next question will come from the line of Craig Huber with Huber Research. Please ask your question.

Craig Huber: Please unmute and ask your question. Thank you. Robert, just wanted to ask you, as you know, you guys went public with your thoughts on optimizing the structure of the company two Novembers ago. A lot of people applaud you for what you did with Foxtel, you're simplifying the company from that angle. I'm just curious, as the other gentleman was asking as well, is there more to go here to simplify the company? I know part of it's kind of maybe gummed up a little bit here, just given the tough US mortgage market, if you were ever going to do anything with realtor.com, nobody would want you to potentially sell that in a lousy market where you would not optimize the value of it and so forth.

Craig Huber: Thank you Robert just wanted to ask you.

Speaker Change: As you know you guys went public with your thoughts on that.

Speaker Change: Optimizing the structure of the company to November should go a lot of people applaud you for what you did with Fox told you <unk>.

Speaker Change: <unk> the company from that angle I'm, just curious if you have a gentleman was asking as well is there more to go here to simplify the company I know part of it is kind of maybe come up a little bit here, just given the tough U S. Mortgage market. If you are ever going to do anything with realtor dot com there'll be would want you to potentially sell that.

Speaker Change: The housing market, we will optimize the value of it and so forth, but putting that issue aside can we maybe.

Craig Huber: But putting that issue aside, could we maybe...

Craig Huber: Potentially get another announcement here before maybe we get to the two-year mark. I just want to get sort of a sense here of what we're playing with here. Is there more to come here on optimizing the company?

Speaker Change: Potentially get another announcement here before maybe we get to the two year, Mark just want to get sort of a center.

Speaker Change: What we're playing with here or is there more to come here on the optimize the company. Thank you.

Robert Thomson: Thank you. Craig, we are constantly reviewing the structure of the company, and look, it is fair to say that the Foxtel deal itself is hard evidence of that, that our consideration of the appropriate structure does not end with... Significant decision. But there is no doubt that we have a collection of very valuable assets. And I certainly wouldn't underestimate the value of realtor. I mean, when you look at the new growth areas there, so seller related revenues, new homes and rentals, all of which have been a focus of investment by Damien and the team, those revenues rose 51% in the quarter compared to a year earlier.

Craig Huber: Craig we are constantly reviewing the structure of the company. It is fair to say that you folks they'll deal itself is is hard evidence of that.

Craig Huber: Our consideration of the appropriate structure does not end with that significant decision.

Craig Huber: But there is no doubt we have a collection of very valuable assets and I certainly wouldn't underestimate the value of realtor.

Craig Huber: When you look at the new growth areas.

Craig Huber: Seller related revenues, new homes and rentals.

Craig Huber: All of which had been a focus of investment by Diamond entertain those revenues rose, 51% in the quarter compared to a year earlier and just one other point worth highlighting at realtor.

Robert Thomson: And just one other point worth highlighting at realtor. And this is according to the realtor.com score. So it's independent, not one of those wonderful internal metrics used by some. Realtor has a significantly higher rate of visits per unique Page visits per unique visits and Zillow, and that's valuable. That shows that we have a quality audience. These are drive-buyers. These are not drive-buyers, I should say.

Craig Huber: And this is according to Comscore so its independent not one of those wonderful internal metrics used by some.

Craig Huber: Realtor has a significantly higher rate of visits per unique.

Craig Huber: Page visits per unique visits and Zillow and.

Craig Huber: That's valuable that shows that.

Craig Huber: We have a quality audience. These are drive Bys. These are not drive bys I should say.

Robert Thomson: These are customers parking their car in a garage.

Craig Huber: These are customers talking to car in the garage.

Craig Huber: Thank you. Thank you Greg look.

Brian Han: Luke, we will take our next question. Our next question comes from the line of Brian Han with Morningstar.

Speaker Change: Look we will take our next question. Please.

Speaker Change: Our next question comes from the line of Brian Han with Morningstar. Please immune ask a question.

Brian Han: Please unmute and ask your question. Robert, just to be clear on Dow Jones, your expectation that year-on-year growth will accelerate in the second half, were you referring to revenue growth? or Earnings Growth.

Speaker Change: Robert just to be clear on Dow Jones, your expectation that year on year growth will accelerate in the second half.

Speaker Change: Are you referring to revenue growth.

Speaker Change: Earnings growth.

Robert Thomson: And are there any plans to increase investment in Dow Jones going forward, whether in marketing or technology? Thanks. We're always looking for opportunities for Dow Jones. And you can see from the investments, dare I say, SAGE investments made in recent years, which are now coming to fruition, that if there's an opportunity at a reasonable price, we'll pursue it.

And are there any plans to increase investments in Dow Jones going forward.

Speaker Change: Whether in marketing or technology. Thanks.

Speaker Change: But we're always looking for opportunities for Dow Jones, and you can see from the investments there as I say edge investments made in recent years.

Speaker Change: Now coming to fruition.

Speaker Change: If there is an opportunity at a reasonable price we'll pursue it.

Robert Thomson: We see two areas of potential improvement from the Dow Jones team. One, we're coming into the period, as Lavinia mentioned, of higher sales. And secondly, we are also seeing that the dynamic pricing system adopted by the team is starting to bring us benefits. So the combination...

Speaker Change: We we see two areas of potential improvement from the Dow Jones team one we're coming into the period is loving you mentioned of higher sales and secondly, we are also seeing that the dynamic pricing system adopted by the team started to bring its benefits. So the combination of both.

Unknown Attendee: Thank you, Brian, Luke, we will take our next. Yes.

Speaker Change: Thank you.

Speaker Change: Brian look we will take our next question. Please.

Unknown Attendee: And as a reminder, if you'd like to ask a question, please use the raise hand feature on your screen.

Speaker Change: Yes, and as a reminder, if you'd like to ask a question. Please raise your hand feature on your screen.

Evan Carraza: Our next question will come from Evan Carraza with UBS. Please unmute and ask your question.

Our next question will come from Evan process with UBS. Please ask your question.

Evan Carraza: OK.

Speaker Change: Okay.

Evan Carraza: Morning, can I just ask one around the Strongdale-Jones margin expansion you're delivering, maybe Can you give an idea of the margin headwind from the Factiva dispute to help us get a more normalised margin? Is this expectation of the 100-ish basis points of quarterly margin expansion, is that around the level you'd be expecting for the rest of the year or going forward, just given the multiple moving parts happening there in the second half that you've spoken to?

Evan: Good morning, guys.

Speaker Change: One around the strong Dow Jones margin expansion, you're delivering maybe.

Speaker Change: You talked about a couple of minutes ago can you just firstly just give an idea of the margin headwind from the factory by the street to help us get a I guess a more normalized margin and then we can as well is this expectation of the 100 ish basis points quarterly margin expansion is that around the level you would be expecting for the rest of the year or I guess going forward just given the <unk>.

Speaker Change: We're moving parts happening there in the second half that you just sort of concern.

Speaker Change: Yes.

Lavanya Chandrasekhar: Thank you for your question Evan, this is Lavanya.

Speaker Change: Thank you for your question Evan This is loving it.

Lavanya Chandrasekhar: We're not, I'm not going to be giving margin guidance for that.

Speaker Change: We're not I'm not going to be giving margin guidance for Dow Jones for the second half of the year, but just kind of talk about what the impact of property, but it was just on <unk>.

Unknown Attendee: Unknown Attendee, Gavin Deane, Jamie Laskovski, Brian Murray, Unknown Attendee, Gavin Leung, more than a 300 basis point impact on revenue. Mark there on what that may have impacted. In the second half, we will continue to be disciplined on cost.

Speaker Change: Revenue perspective, Factiva had more than a 300 basis point impact on revenue.

Speaker Change: And so you can kind of do the math on what that may have impacted from a margin perspective.

Speaker Change: Look in the second half we will continue to be disciplined on cost we will continue to work towards improving profitability.

Unknown Attendee: Unknown Attendee.

Unknown Attendee: Thank you. and really focused on monetizing all the.

Speaker Change: Are they focused on monetizing all the subscriptions that we added last year.

Unknown Attendee: Unknown Attendee, Gavin Deane, Jamie Laskovski, Brian Murray, News Corp Thank you, Evan, Luke, we will take our next question.

Speaker Change: We should expect to continue to see upside in margins.

Evan: Thank you Evan look we will take our next question.

Unknown Attendee: At this time, we have no further questions.

Evan: At this time, we have no further questions I will hand, the call over to Michael Florin for closing remarks, great well. Thank you all for participating and look forward to speaking to you soon have a wonderful day.

Michael Florin: I will hand the call over to Michael Florin for closing remarks.

Michael Florin: Great.

Well, thank you all for participating. We look forward to speaking to you soon. Have a wonderful day.

Evan: Take care.