Q3 2025 News Corp Earnings Call
Operator: Today's conference is being recorded.
Is being recorded.
Conference Call. Today's 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: Media will be allowed on a listen-only basis.
Michael Florin: 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.
Robert Thomson: Hello, everyone, and welcome to News Corp's fiscal third 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: Thank you very much, operator. Everyone and welcome to News Corp. 3, 2025 earnings call.
Speaker Change: We issued our earnings press lease about 30 minutes ago, and it's now posted on our website at newscorp.com On the call to air Robert Thomson, Chief Executive, and Lavanya Chandrashekar, Chief Financial Officer We'll open some repair remarks and we'll be happy to take questions from the investment community.
Robert Thomson: On the call today are Robert Thompson, Chief Executive, and Lavanya Chandrashekar, Chief Financial Officer.
Robert Thomson: We'll open with some prepared remarks, and we'll be happy to take questions from the investment This call may include certain forward-looking information with respect to News Corp's business and strategy.
Speaker Change: 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 cautious statements regarding forward-looking information.
Robert Thomson: Actual results could differ materially from what is said.
Robert Thomson: News Corp's Form 10-K and Form 10-Q filings identify risks and uncertainties that could cause actual results to differ and contain cautious statements regarding forward-looking information.
Robert Thomson: Additionally, this call will include certain non-GAAP financial measurements such as total segment EBITDA, adjusted segment EBITDA, and adjusted EPS.
Speaker Change: Additionally, this call will include certain non-GAAP financial measurements, such as Total Sigmund Yvda, Adjusted Sigmund Yvda, and Adjusted EPS. The definitions and gap-to-non-gap reconciliation to such measures can be found in the earnings release for the applicable periods posted on our website.
Robert Thomson: The definitions and GAAP to non-GAAP reconciliations of such measures can be found in the earnings release for the applicable periods posted on our website.
Robert Thomson: With that, I'll pass over to Robert Thomson for some opening comments. Thank you, Mike. The sustained strength of News Corp's third quarter results reflects the company's strategic transformation. We have pursued digital growth, realigned our assets, focused relentlessly on cost discipline, and asserted the essential value of our intellectual property in a changing, challenging continent. These potent results come despite political turbulence that has clearly affected some of our business partners and undermined their ability to plan coherently. We firmly believe that this disruption is ephemeral and that the U.S. has the potential for robust growth when the heavens return to equilibrium.
Michael Florin: With that I'll pass over to Robert Thomson for some opening comments.
Robert Thomson: Thank you, Mike. These sustained strength of News Corp. Third Corp. results reflects the company's strategic transformation. We have pursued digital growth, re-aligned our assets, focused relentlessly on cost discipline and asserted the essential value of our intellectual property in a changing, challenging, content world.
Robert Thomson: These potent results come to spite political turbulence that has clearly affected some of our business partners and undermined their ability to plan coherently.
Robert Thomson: We firmly believe that this disruption is a femoral and that the US has the potential for robust growth when their heavens return to equilibrium.
Robert Thomson: The Administration's pursuit of sensible deregulation and a sound energy policy, combined with America's economic prowess and innate creativity, should surely produce favorable results. When Adam Smith spoke sagely of the power of the invisible hand, he did not envisage an economic slap in the face from the unruly introduction of exorbitant tariffs. America's animal spirits do need emancipation from the cage of uncertainty. As for our company, net income from continuing operations rose 67% to $107 million in Q3, compared to the prior year, while revenues were $2 billion ahead of the prior period by 1% despite blustery currency headwinds.
Robert Thomson: The administration's pursuit of sensible deregulation and a sound energy policy combined with America's economic prowess and innate creativity should surely produce favorable results.
Robert Thomson: When Adam Smith spoke sagely of the power of the invisible hand, he did not envisage an economic slap in the face from the unruly introduction of exorbitant tariffs. America's animal spirits do need emancipation from the cage of uncertainty.
Thank you.
Robert Thomson: As for our company, net income from continuing operations rose 67% to $107 million in the third quarter, compared to the prior year, while revenues were $2 billion ahead of the prior period by 1% despite blustery currency headwinds.
Robert Thomson: Total segment EBITDA increased 12%, with the overall margin expanding from 13% to 14.4%. Third quarter adjusted revenues were actually ahead by 2%, while adjusted total segment EBITDA expanded 15%. Our reported EPS from continuing operations doubled to $0.14, while our adjusted EPS was $0.17 compared to $0.13 a year ago. Following the close of the quarter, we concluded the sale of Foxdale to DAZN, highlighting our intention to concentrate investment on three core pillars of growth, Dow Jones, digital real estate, and books. The transaction saw the transfer of US$724 million of Foxtel debt off our balance sheet and the direct repayment of AU$592 million in shareholder loans to News Corp.
Robert Thomson: Total segment EBITDA increased 12% with the overall margin expanding from 13% to 14.4%
Speaker Change: 3rd quarter adjusted revenues were actually ahead by 2% while adjusted total segment EBITDA expanded 15%
Robert Thomson: Our reported EPS from continuing operations doubled to 14 cents, while our adjusted EPS was 17 cents compared to 13 cents a year ago.
Robert Thomson: We also received an equity interest of approximately 6% in the fast-growing DAZN, which is a world leader in sports streaming. While music has Spotify, DAZN could well become Spotify. We are immensely proud of the Foxtel team and their transformation of the company in recent years, and are also proud to be a global partner of DAZN, which has much technological expertise in global... The transaction is expected to be earnings accretive and improve our return on invested capital.
Robert Thomson: We also received an equity interest of approximately 6% in the fast growing design, which is a world leader in sports streaming while music has Spotify the zone could well become Spotify.
Robert Thomson: We are immensely proud of the Fox tell team and their transformation of the company in recent years and are also proud to be a global partner of design, which has much technological expertise and global reach the transaction is expected to be earnings accretive and improve our return on invested capital as we noted last quarter.
Robert Thomson: As we noted last quarter, Moody's and S&P have both upgraded the company to investment. And there is no doubt that the return of significant cash from the deal, combined with the strength of our free cash flow and expected lower capital intensity, has increased our optionality. As demonstrated with the sale of Foxtel, we are continuously exploring structural options to maximise returns for our shareholders.
Robert Thomson: Moody's and S&P have both upgraded the company to investment grade and there is no doubt that the return of significant cash from the deal combined with the strength of our free cash flow and expected lower capital intensity has increased our optionality.
Robert Thomson: As demonstrated with the sale of Fox tail, we are continuously exploring structural options to maximize returns for our shareholders. The sempiternal importance of quality journalism cannot be underestimated in the midst of the current political milestone. It is imperative that journalist focus on facts a task complicated by <unk>.
Robert Thomson: The sempiternal importance of quality journalism cannot be underestimated in the midst of the current political maelstrom. It is imperative that journalists focus on facts, a task complicated by faux fact-checking, at a time when even science, from climate to medicine, has become politicised and polarised. undermining the long-term credibility of once-trusted experts and institutions. The currency of credibility will become even more crucial as AI continues its exponential growth and inevitably blurs the lines between the actual and the anthropomorphic. We are pleased with our principal partnership with OpenAI and trust that other AI operators strip-mining our intellectual property fully appreciate their responsibilities to our company, to creativity, and to the community.
Robert Thomson: So fact checking at a time when even science from climate to medicine has become Politicised and polarizing undermining our long term credibility of one's trusted experts and institutions.
Robert Thomson: The currency of credibility will become even more crucial as AI continues its exponential growth and inevitably blurs the lines between the actual and the anthropomorphic.
Speaker Change: We are pleased with our principal partnership with open AI and trusted other IR operators strip money out intellectual property fully appreciate their responsibilities to our company to creativity and to the community having recently visited China. It is obvious that America's comparative advantage is not of chips or compute power of data storage, but in.
Robert Thomson: Having recently visited China, it is obvious that America's comparative advantage is not in chips or compute power or data storage, but in creativity, in lateral thinking, and it would be shameful if big digital players undermine that source of strength by eviscerating IP. Patently, blatantly, we believe some AI companies are stealing. So much so that they have no doubt ripped off even the President of the United States, Donald Trump, by ingesting books, including The Art of the Deal, and repurposing them for profit without his permission. And we expect the AI anarchists will surely have done the same with Truth Social, purloining content and data to fuel their economic efforts.
Speaker Change: Creativity in lateral thinking and it would be shameful with big digital players undermine that source of strength by Eviscerating IP rights Patency blatantly, we believe some AI companies Australian content. So much so that I have no doubt ripped off even the president of the United States Donald Trump by ingesting.
Speaker Change: Books, including the art of the deal and Repurposing them for profit without his permission and we expect the AI Anarchist's will surely have done the same with truth, social per Lloyd and content and data to fuel the economic engines.
Robert Thomson: Returning to our results, Dow Jones was the highlight, we foresaw an improvement in the quarter and that expectation was definitely there.
Speaker Change: Returning to our results Dow Jones was a Hollywood, we force or an improvement in the quarter and that expectation was definitely realized.
Robert Thomson: We're going to have to wait and see. Dow Jones posted a healthy 6% revenue growth, while profitability surged 12%, and the margin rose from 21.7% to 23%. There is still much toil ahead, as Elmar and the trusty team realise, but we saw digital circulation revenue expand 14%, the fastest growth rate in almost three years, and recorded improvement in digital ARPU year-over-year and quarter-over-quarter, while total consumer subscriptions surpassed the 6 million mark. Since our re-segmentation in 2020, not only has Dow Jones profitability more than doubled, but total subscriptions have risen over 60%, with more than 90% now fully digital.
Speaker Change: Dow Jones posted a healthy 6% revenue growth, while profitability surged to 12% and the margin rose from 21, 7% to 23%.
Speaker Change: There is still much toil ahead, as elma and the trustee team realize but we saw digital circulation revenue expand 14% the fastest growth rate in almost three years and recorded improvements in digital offer a year over year and quarter over quarter, while total consumer subscriptions surpassed the 6 million milestone.
Speaker Change: Since you are re segmentation in 2020, not only has Dow Jones profitability more than doubled but total subscriptions have risen over 60% with more than 90% in a fully digital the rather active new cycle has unsurprisingly contributed to further increases in audience traffic and subscriptions in recent days.
Robert Thomson: The rather active news cycle has unsurprisingly contributed to further increases in audience traffic and subscriptions in recent years. The professional information business at Dow Jones continued to thrive, posting an improved 6% revenue growth, driven by double-digit expansion at both risk and compliance and Dow Jones NFI. Risk and Compliance posted 11% revenue growth despite unfavourable currency volatility as risks rose in the global economy and the need for compliance remained an imperative for thoughtful companies in a fast-changing regulatory environment.
Speaker Change: The professional information business at Dow Jones continued to thrive posting an improved 6% revenue growth driven by double digit expansion at both the risk and compliance and Dow Jones energy risks.
Speaker Change: Our risk and compliance posted 11% revenue growth despite unfavorable currency volatility as risks rose in the global economy and the need for compliance remains an imperative for thoughtful companies in a fast changing regulatory environment.
Robert Thomson: Significantly, we completed the acquisition of Oxford Analytica and Dragonfly Intelligence in the fourth quarter, which should enhance our ability to provide insight and intel to companies across the globe. Meanwhile, Dow Jones Energy posted 10% revenue growth as we invested in product offerings and built on unique pricing products and real-time analysis. One example was carbon and clean fuels analytics, which helps businesses, investors and traders capitalise on opportunities from energy transition at a time of pronounced regulatory upheaval. The Dow Jones team expects that Factiva, which has been in an unfortunate drag on professional information revenues, should improve in coming quarters as we cycle past the unfavourable impact of a contentious climb.
Speaker Change: Significantly we completed the acquisition of Oxford, analytical and Dragonfly intelligence in the fourth quarter, which should enhance our ability to provide insight at Intel to companies across the globe mean.
Speaker Change: Meanwhile, Dow Jones energy, posting 10% revenue growth as we invested in product offerings and built on unique pricing products and real time analysis. One example was carbon and clean fuels analytics, which helps businesses investors and traders capitalize on opportunities from energy transition at a time of pronounced regulatory op.
Speaker Change: People.
Speaker Change: The Dow Jones team expects at Factiva, which has been an unfortunate drag on professional information revenues should improve in coming quarters as we cycled past the unfavorable impact of a contentious client dispute.
Robert Thomson: At Digital Real Estate Services, profitability surged 19% on a 5% increase in revenues, and, notably, margin improved from 26.8% to 30.5%. REA posted 6% revenue growth, or 11% on a constant currency basis, thanks to a 15% increase in yield compared to the same period last year. REA maintained a rather healthy audience lead, with nearly four times as many average monthly visits as domain, and nearly five times the user engagement, as measured by independent metrics. At Realtor.com, revenues rose 2% as growth initiatives across rental, seller, and new homes flourished, accounting for 22% of total revenue, even though overall market conditions remain difficult because of elevated mortgage rates and economic instability.
Speaker Change: At digital real estate services profitability search, 19% on a 5% increase in revenues and notably margin improved from 26.8% to 35% or a posted 6% revenue growth or 11% on a constant currency basis, thanks to a 15%.
Speaker Change: Increase in yield compared to the same period last year, our AI maintained a rather healthy audience lead with nearly four times as many average monthly visits as domain and nearly five times the user engagement as measured by independent metrics.
Speaker Change: At Realtor Dot com revenues rose, 2% as growth initiatives across rental seller of new homes flourished accounted for 22% of total revenue, even though overall market conditions remain difficult because of elevated mortgage rates and economic instability.
Robert Thomson: Damien Eales and the Realtor team thrive on competition, and are gaining audience and user loyalty, pulling further ahead of Redfin and Homes.com thanks to the network effect created by our media. We believe that network advantage will become more pronounced as the character of search continues to change profoundly in coming years. Based on third-party verified source Comscore, total visits to the site reached 239 million in March, representing 29% of market share among the top real estate portals, and a 3.7 times traffic advantage over homes.com and 2.7 times greater than Redfin. While our 4.5 visits per visitor is the category leader and a compelling sign of engagement and loyalty.
Speaker Change: Damian use in the real to Tim thrive on competition and are gaining audience and user loyalty pulling further ahead of redfin and homes Dot com. Thanks to the network effect created by our media platforms.
Speaker Change: We believe that network advantage will become more pronounced as the character of search continues to change profoundly in coming years based on third party verified source Comscore total visits to the site reached 239 million in March representing 29% of market share among the top real estate portals.
Speaker Change: And a three seven times traffic advantage over here in Stockholm, and two seven times greater than redfin, while a 4.5 visits per visitor is the category leader and a compelling sign of engagement and loyalty and let's be very clear. These are not home brewed metrics.
Robert Thomson: And let's be very clear, these are not home-brewed metrics. In book publishing, in a relatively slow season, with Brian Murray's guidance, revenue expanded by 2% to $514 million, and EBITDA rose 3% to $64 million, thanks in large part to the recent acquisition of German book publisher Graefer & Unser. Additionally, digital revenues grew 3% as audiobooks continued to prosper, including contributions from our key partnership with Spotify. We saw strength from Gregory Maguire's latest addition to the Wicked universe, Alfie, along with other standouts such as Tessa Bailey's Dream Girl drama and Alex Astor's Summer in the City.
Speaker Change: In book publishing in a relatively slow season, with Brian Murray's guidance revenue expanded by 2% to $514 million and EBITDA rose, 3% to $64 million. Thanks in large part to the recent acquisition of German book publisher Greater Windsor.
Speaker Change: <unk> digital revenues grew 3% as audiobooks continued to prosper, including contributions from our key partnership with Spotify, We saw strength from Gregory Maguire latest edition to the weekend universe healthy along with other standouts such as Tessa barely Dream girl drama and Alex asked this summer in the city.
Robert Thomson: Our Christian divisions showed sustained strength, particularly in Bible sales. And Bible Gateway, which we are developing as both a portal and a community, had 87 million uniques during the... We expect that burgeoning site will add to our network effect as a funnel for Realtor.com and our media sites, which in turn will drive traffic to BibleGate. In the coming quarter, we are excited by the release of the paperback of Shelby Van Pelt's bestseller, Remarkably Bright Creatures, along with On Democracies and Death Cults, by Douglas Murray, I Wish Someone Had Told Me, by Dana Perino, and Uptown Girl, by Christy Brown.
Speaker Change: Christian Division showed sustained strength, particularly in Bible styles, and Bible Gateway, which we are developing as opposed to a portal and a community had 87 million uniques during the quarter. We expect that burgeoning site will add to our network effect as a funnel for realtor dot com and our media sites, which in turn will drive traffic to <unk>.
Speaker Change: The gateway.
Speaker Change: In the coming quarter, we are excited by the release of the paperback of Shelby Van Pelt best seller remarkably broad creatures, along with an democracies and difficult by Douglas Barry I wish someone had told me by Dana Perino and Uptown girl by Christie Brinkley.
Robert Thomson: HarperCollins has acquired the North American rights to The Land of Sweet Forever, Stories and Essays by Harper Lee.
Speaker Change: Harper Collins has acquired the North American rights to the land of Sweet Forever stories, and essays by Harper Lee the collection set to publish in the first half of fiscal year 2026 will include several unseen short stories from the legendary author of Tequila Mockingbird.
Robert Thomson: The collection, set to publish in the first half of fiscal year 2026, will include several unseen short stories from the legendary author of To Kill a Mind. The news media segment posted healthy EBITDA growth of 22%, building on the 30% year-on-year growth reported last quarter as our partnerships with OpenAI and other principal digital platforms continue to benefit our mastheads, while the teams were diligent in their costs. At News UK, under Rebecca Brooks' leadership, digital subscriptions to the Times and Sunday Times reached $629,000, rising 8% compared to prior year, and digital advertising revenue at the Times continued to expand.
Speaker Change: The news media segment posted healthy EBITDA growth of 22% building on the 30% year on year growth reported last quarter as our partnerships with open AI and other principal digital platforms continue to benefit our milestones while the teams with diligent in their cost discipline.
Robert Thomson: At news UK under Rebekah Brooks' leadership digital subscriptions to the times and Sunday Times reached 629000, rising 8% compared to prior year and digital advertising revenue at the times continued to expand.
Robert Thomson: Meanwhile, we launched the Sun Club in February, which provides premium journalism and exclusive offers. At the New York Post, A Rich Was As Influential As Its Vast Audience, finishing with 85 million uniques for the month of March. It is a rare publication indeed that can boast such a broad and deep readership, from the corner office to the overall. Australia's mastheads provide an important platform for informed reporting and debate during the recent election. And we also saw continued growth in digital subscriptions, reaching 1.1 million. Meanwhile, News.com.au was the number one digital news brand in page views, achieving $292 million per month in March, according to Ibsen.
Robert Thomson: Meanwhile, we launched the Sun club in February which provides premium journalism and exclusive offers the members.
Robert Thomson: At the New York Post a rich was as influential as its fast audience, finishing with 85 million uniques for the month of March. It is a rare publication, indeed that can boast such a broad and deep readership from the corner office to the Ergo Office News Corp, Australia is masked heads provide an important platform for informed reporting and <unk>.
Robert Thomson: During the recent election campaign and we also saw continued growth in digital subscriptions, reaching $1 1 million.
Robert Thomson: Meanwhile, news Dot com that I you was the number one digital news brand in page views achieving $292 million per month in March According to himself and Sky News, Australia was the country's number one Youtube news channel with $5 5 million subscriptions, reflecting its local and global reach.
Robert Thomson: And Sky News Australia was the country's number one YouTube news channel with 5.5 million subscriptions, reflecting its local and global reach. The strength of our results, through the first three quarters of the current rather colourful fiscal year, speaks to the meaningful metamorphosis that began a decade ago. That transformation simply would not have been possible without the leadership of our Chair, Lachlan Murdoch, and Chairman Emeritus, Rupert Murdoch, and a thoughtful and thoroughly engaged Board. Our success is also a tribute to our employees around the world, and the collective achievement is a sturdy platform on which to build even greater returns for shareholders in the years to come.
Robert Thomson: The strength of our results through the first three quarters of the current rather colorful fiscal year speaks to the meaningful metamorphosis that began a decade ago.
Robert Thomson: That transformation simply would not have been possible without the leadership of our chair Lachlan Murdoch and chairman Emeritus Rupert Murdoch and a thoughtful and thoroughly engaged board. A success is also a tribute to our employees around the world and the collective achievement is a sturdy platform on which to build even greater returns for shareholders in the year.
Robert Thomson: Is to come.
Lavanya Chandrashekar: And now, I turn to our esteemed Erudite Chief Financial Officer, Lavanya Chandrashekar, to provide further insight into our third quarter. Thank you, Robert, and good afternoon. I'd like to start by reinforcing our distinguished Chief Executive's comments on our ongoing transformation. While economic and geopolitical conditions have been uncertain, we continue to be purposeful in our execution and strategic focus. We have transformed our asset mix, increasing exposure to recurring revenues while reducing advertising exposure. Moreover, the majority of our revenue is now digital. Our divestiture of Foxtel has resulted in News Corp being more weighted to our three core pillars, Dow Jones, digital real estate services, and book publishing.
Speaker Change: And now I turn to our esteemed erudite Chief Financial Officer, Lovinger Chandra Shaker to provide further insight into our third quarter results.
Speaker Change: Thank you Robert and good afternoon.
Speaker Change: I'd like to start by reinforcing our distinguished Chief execute his comments on our ongoing transformation.
Speaker Change: While economic and geopolitical conditions have been uncertain, we continue to be purposeful in our execution and strategic focus.
Speaker Change: We have transformed our asset mix, increasing exposure to the current revenues, while reducing advertising exposure.
Speaker Change: Moreover, the majority of our revenue is now digital.
Speaker Change: Our divestiture of Fox style has resulted in used car being more weighted to our three core pillars, Dow Jones digital real estate services and book publishing.
Lavanya Chandrashekar: This is expected to drive faster growth, with less capital intensity and hence a higher return on invested capital. Our strong balance sheet and steady cash flow enables us to maximize shareholder value creation. During these turbulent times, as you would expect from News Corp, we are monitoring trends closely. As things stand, the direct impact of tariffs on News Corp is expected to be immaterial. Of note, at present, newsprint is excluded from additional tariffs, as are children's and Christian books imported from China. In these volatile times, we will continue to focus on what we can control and will seek to take cost action as necessary.
Speaker Change: This is expected to drive faster growth with less capital intensity and hence a higher return on invested capital.
Speaker Change: Our strong balance sheet and steady cash flow enables us to maximize shareholder value creation.
Speaker Change: During these turbulent times as you would expect some news Corp, we are monitoring trends closely.
Speaker Change: As things stand the direct impact of tariffs unused crop is expected to be in Mckinney.
Speaker Change: Off note a pleasant newsprint is excluded from additional status as our children's and Christian books imported from China.
Speaker Change: These volatile times, we will continue to focus on what we can control and we'll seek to take cost action as necessary.
Lavanya Chandrashekar: Turning to the quarterly results, which I'm pleased to report were again strong.
Speaker Change: Turning to the quarterly results, which I'm pleased to report were again strong.
Lavanya Chandrashekar: As a reminder, Foxtel's financial results are reflected as discontinued operations for the fiscal 2025 and 2024 third quarter and year-to-date periods, and subscription video services is no longer a reportable segment. News Corp reported fiscal third quarter revenues on a continuing operations basis of $2 billion, rising 1% year-over-year, and total segment EBITDA of $290 million, increasing 12% year-over-year. Margins improved by 140 basis points to 14.4%. This quarter, Dow Jones and digital real estate contributed 88% of profitability. Third quarter adjusted revenues rose 2% compared to the prior year with the difference from reported being primarily due to currency impact, while adjusted total segment EBITDA rose 15% versus the prior year.
Speaker Change: As a reminder, Fox tells financial results are reflected as discontinued operations for the fiscal 2025, and 2020 for third quarter and year to date piglets.
Speaker Change: In subscription video services is no longer a reportable segment.
Speaker Change: News Corp reported fiscal third quarter revenues on a continuing operations basis of $2 billion rising 1% year over year, and total segment EBITDA of $219 million, increasing 12% year over year.
Speaker Change: Margins improved by 140 basis points to 14, 4%.
Speaker Change: This quarter, Dow Jones, and digital real estate contributed 88% of profitability.
Speaker Change: Third quarter, adjusted revenues rose, 2% compared to the prior year with the difference from reported being primarily due to currency impact while adjusted total segment EBITDA rose 15% versus supply here.
Lavanya Chandrashekar: For the quarter, we reported earnings from continuing operations per share of $0.14 compared to $0.07 in the prior year. Adjusted earnings from continuing operations per share were $0.17 in the quarter compared to $0.13 in the prize.
Speaker Change: For the quarter, we reported earnings from continuing operations per share our 14th.
Speaker Change: Seven cents in the prior year adjusted.
Speaker Change: Adjusted earnings from continuing operations per share was <unk> 17 cents in the quarter compared to 13 cents and apply here.
Lavanya Chandrashekar: Moving to the individual segments, starting with Dow Jones. As we expected, Dow Jones results year-over-year improved from the first half, with reported revenues of $575 million, up 6% versus the prior year period, and was again the largest segment contributor to overall company revenue, and for this quarter, also to total segment EBITDA. Digital revenue accounted for 82% of total Dow Jones segment revenues this quarter, improving one percentage point from last year. Overall, professional information business revenues, which reflect our B2B products and services, rose 6% year-over-year, overcoming a 200-basis-point adverse impact from Factiva, primarily due to the ongoing customer dispute that we mentioned last quarter, a modest improvement from the second quarter impact.
Speaker Change: Moving to the individual segments, starting with Dow Jones Act, we expected Dow Jones results year over year improved from the first half with reported revenues of $575 million up 6% versus the prior year period and was again the largest segment contributed to overall company's Avenue.
Speaker Change: And for this quarter.
Speaker Change: Total segment EBITDA did.
Speaker Change: Digital revenue accounted for 82% of total Dow Jones segment revenues this quarter, improving one percentage point from last year.
Speaker Change: Overall professional information business avenues, which reflect our b to b products and services rose, 6% year over year, overcoming a 200 basis point adverse impact from Factiva, primarily due to the ongoing customer dispute that we mentioned last quarter, a modest improvement in the second quarter.
Speaker Change: Impact.
Lavanya Chandrashekar: Risk and compliance grew 11% to $84 million, with the growth driven by new customers, new products, and improved years. At Dow Jones Energy, revenue grew 10% to $69 million with customer retention remaining very strong at over 90%.
Speaker Change: The risk and compliance grew 11% to $84 million with the growth driven by new customers new products and improved yet.
Speaker Change: At Dow Jones Energy is Avenue grew 10% to $69 million with customer retention remains very strong at over 90%.
Lavanya Chandrashekar: In April, Weavey invested in risk and compliance to further enhance its product offerings and data sets to include geopolitical, security, intelligence, and risk analysis. via the acquisition of Dragonfly and Oxford Analytica. At Energi, customer demand for our key benchmark pricing products remained robust, and we continue to expand our offerings with the launch of several new indices, assisting customers to hedge more effectively and manage risk in increasingly volatile markets.
Speaker Change: In April we invested in risk and compliance to further enhance its product offerings and datasets to include geopolitical security intelligence and risk analysis by the acquisition of Dragon fly and Oxford analytics.
Speaker Change: At energy customer demand for our key benchmark pricing products remain robust and we continue to expand our offerings with the launch of several new indices.
Speaker Change: Listing customers to hedge more effectively and manage risk and increasingly volatile markets.
Speaker Change: Within the Dow Jones consumer business.
Lavanya Chandrashekar: within the Dow Jones Consumer Business. Circulation revenues rose 7% versus the prior year, benefiting from an improvement in digital circulation revenue of 14%, notably higher than the 8% growth posted in the second quarter as we moved customers from introductory and bundled promotions to higher prices. Digital ARPU also increased quarter over quarter and year over year. Also of note, the digital circulation revenue growth included an approximate 300 basis points timing benefit. Digital circulation revenues accounted for 75% of circulation revenues for this quarter, up from 70% in the prior year.
Speaker Change: <unk> revenues rose, 7% versus the prior year benefiting from an improvement in digital circulation revenue, a 14%, notably higher than the 8% growth posted in the second quarter as we move customers from introductory and bundled promotions to higher pricing.
Speaker Change: Digital art will also increased quarter over quarter and year over year.
Speaker Change: Also of note the digital circulation revenue growth included an approximate 300 basis points timing benefit.
Speaker Change: Digital circulation revenues accounted for 75% of circulation revenues for this quarter up from 70% in the prior here.
Lavanya Chandrashekar: Digital-only subscriptions improved by 9% year-on-year and by 191,000 sequentially, benefiting from seasonality, particularly related to students, and marked the highest addition since the third quarter of 2024.
Speaker Change: Digital only subscriptions improved by 9% year on year and by 191000 sequentially benefiting from seasonality, particularly related to students and marked the highest edition since the third quarter of 2024.
Lavanya Chandrashekar: Advertising revenue of $86 million was flat, improving from the prior quarter and the first half rate, with both digital and print relatively flat. Digital represented 63% of advertising revenues in line with the prior year.
Speaker Change: Advertising revenue of $86 million was flat improving from the prior quarter and the first half rate with both digital and print relatively flat ditch.
Speaker Change: Digital represented 63% of advertising revenues in line with the prior year.
Lavanya Chandrashekar: Dow Jones segment EBITDA for the quarter grew 12% to $132 million, with margins increasing to 23%.
Speaker Change: Dow Jones segment EBITDA for the quarter grew 12% to $132 million with margins increasing to 23%.
Lavanya Chandrashekar: Moving on to digital real estate. Digital real estate had another solid quarter despite a tough prior year comparison and Forex headwinds, with segment revenues of $406 million, up 5% versus the prior year, and up 8% on an adjusted basis. Segment EBITDA was $124 million, up 19%, and up 25% on an adjusted basis. REA revenues rose 6% year-on-year to $271 million, which included a $14 million adverse impact from forex fluctuation. REA revenue grew 11% on a constant currency basis. Growth was driven by a combination of residential yield increases and customer contract upgrades. Residential yield growth improved by 15%.
Speaker Change: Moving on to digital real estate digital real estate had another solid quarter. Despite the tough prior year comparison, and Forex headwinds with segment revenues of $406 million up 5% versus the prior year and up 8% on an adjusted basis.
Speaker Change: Segment, EBITDA was $124 million up 19% and up 25% on an adjusted basis.
Speaker Change: <unk> revenues rose, 6% year on year to $271 million, which included a $14 million adverse impact from Forex fluctuations.
Speaker Change: Revenue grew 11% on a constant currency basis.
Speaker Change: Growth was driven by a combination of reston should yield increases and customer contract upgrades.
Speaker Change: But essentially yield growth improved by 15% listings in the quarter were flat compared to the prior year with listings in Sydney at 4% and Melbourne down 3% lift.
Lavanya Chandrashekar: Listings in the quarter were flat compared to the prior year, with listings in Sydney up 4% and Melbourne down 3%. Listings benefited from Easter falling into the fourth quarter this year, but were negatively impacted by floods in Queens. REA also benefited from higher revenues at REA India and growth at financial services due to higher settlement.
Speaker Change: Listings benefited from Easter falling into the fourth quarter of this year, but were negatively impacted by floods in Queensland.
Speaker Change: <unk> also benefited from higher revenues at Audi in India and growth that financial services due to higher settlements.
Lavanya Chandrashekar: Please refer to RAA's earnings release and their conference call for more detail. Realtors' revenue for the quarter of $135 million was up 2% compared to the prior year, marking the second consecutive quarter of revenue growth despite continued difficult macro conditions. At Realtor, lower referral and lead generation revenues were more than offset by robust growth from adjacency. Realtor continued to show strong growth from new revenue streams such as sellers, new homes, and rentals, which now represent 22% of revenues. Rentals, in particular, was notably strong, driven by the partnership with Zillow. Realtor.com has been shifting its audience acquisition and engagement strategies to focus on higher quality consumers and leads, which resulted in a notable increase in revenue per lead in the quarter, partly offsetting softer lead volumes.
Speaker Change: Please refer to <unk> earnings release, and their conference call for more details.
Speaker Change: Real dollars revenue for the quarter of $135 million was up 2% compared to the prior year, marking the second consecutive quarter of revenue growth despite continued difficult macro conditions.
Speaker Change: Rialto lower Raphael and lead generation revenues were more than offset by robust growth from adjacencies.
Speaker Change: The hotel continued to show strong growth from new revenue streams, such as seller, new homes, and rentals, which now represent 22% of revenues.
Speaker Change: Rentals in particular was notably strong driven by the partnership with Zillow.
Speaker Change: Realtor Dot com has been shifting its audience acquisition and engagement strategies to focus on higher quality consumer send leads which resulted in a notable increase in revenue per lead in the quarter, partly offsetting softer lead volumes.
Lavanya Chandrashekar: This shift, combined with the persistent affordability issues and home sales volatility, resulted in lead volumes declining 17 percent, while average monthly unique users for the quarter fell 8 percent year-over-year to 66 million at Realtor.com.
Speaker Change: This shift combined with the persistent affordability issues and home sales volatility.
Speaker Change: Altered in lead volumes declining 17%, while average monthly unique users for the quarter fell 8% year over year to 66 million at realtor Dot com.
Lavanya Chandrashekar: Expenses at Realtor came in better than we had initially forecasted, driven by the shift of a new brand campaign to the fourth quarter.
Speaker Change: Expenses at Rialto came in better than we had initially forecasted given by the shift of our new brand campaign to the fourth quarter.
Lavanya Chandrashekar: At Book Publishing, as expected, the facing of frontlist titles weighed on performance this quarter. That said, segment revenues of $514 million, which rose 2%, represented the second highest third quarter on record, while segment EBITDA of $64 million rose 3%. The third quarter results included the recently acquired German book publisher. The strong performance from Christian Publishing and continued growth from the UK offset lower general book sales due to timing of frontlist releases compared with the third quarter last year. Adjusted revenues were flat. HarperCollins posted digital revenues of $122 million, up 3%, which was impacted by a combination of the current release late and lapping the start of the Spotify partnership last year.
Speaker Change: At book publishing as expected the facing of Frontlist titles weighed on performance this quarter.
Speaker Change: That said segment revenues of $514 million, which rose 2% represented the second highest third quarter on traffic while segment EBITDA of $64 million rose 3%.
Speaker Change: The third quarter results included the recently acquired German publisher.
Speaker Change: Our strong performance from Christian publishing and continued growth from the U K offset lower general book sales due to timing of Frontlist releases compared with the third quarter last year.
Speaker Change: Adjusted revenues were flat.
Speaker Change: Harper Collins supposed to digital revenues of $122 million up 3%, which was impacted by a combination of the current release slate and lapping the start of the Spotify partnership last year.
Lavanya Chandrashekar: In total, digital sales represented 25% of consumer revenues, flat compared to the prior year. The backlist contributed 65% of consumer revenues, up from 63% last year.
Speaker Change: Total digital sales represented 25% of consumers avenues flat compared to the prior year.
Speaker Change: The backlist contributed 65% of consumer revenues up from 63% last year.
Lavanya Chandrashekar: Turning to news media, overall revenue performance was challenged due to tougher advertising conditions, partially offset by increased cover prices and subscription pricing across mass media. Revenue for the quarter was $514 million, down 8% versus the prior year, while adjusted revenues fell 6%. Segment EBITDA was up 22% year-over-year to $33 million, driven by cost-savings initiatives similar to the first half, most notably in the UK, from the benefits of the commercial printing joint venture with DMG Media and lower top costs, and further cost initiatives at News Australia. Adjusted segment EBITDA also rose 22%.
Speaker Change: Turning to news media.
Speaker Change: Overall revenue performance was challenged.
Speaker Change: Advertising conditions, partially offset by increased cover prices and subscription pricing across assets.
Speaker Change: Revenue for the quarter was $514 million down 8% versus the prior year, while adjusted revenues fell 6%.
Speaker Change: Segment, EBITDA was up 22% year over year to $33 million driven by cost savings initiatives similar to the first half most notably in the U K some of the benefits of the commercial printing joint venture with DMT media and lower top cost and further cost initiatives at news Australia.
Speaker Change: Adjusted segment EBITDA also rose 22%.
Unknown Attendee: Turning to thou.
Speaker Change: Turning to the outlook some of the teams across each of our segments.
Unknown Attendee: 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. We are pleased with the performance and continue to expect improvement and growth in the second half compared to the first half. Given the mix of subscribers and timing, we expect Circulation Revenue Growth to be more similar to the second quarter, which was also very strong.
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.
Speaker Change: We are pleased with the performance and continue to expect improvement in growth in the second half compared to the first half.
Speaker Change: Given the mix of subscribers and timing, we expect circulation revenue growth to be more similar to the second quarter, which was also very strong.
Unknown Attendee: At Digital Real Estate, Australian residential due by listings for April were down 11%, which was impacted by the timing of public holidays.
Speaker Change: At digital real estate.
Speaker Change: Australian residential do you buy listings for April were down, 11%, which was impacted by the timing of public holidays. Please.
Unknown Attendee: Please refer to REA for more detailed Outlook comments. Realtor.com will continue to focus on technology improvements and enhanced content and product offerings.
Speaker Change: Please refer to Audi for more detailed outlook commentary.
Speaker Change: Realtor Dot com will continue to focus on technology improvements and enhanced content and product offerings. We expect the rate of reinvestment to be modestly higher in the fourth quarter. As we continued to focus on growth initiatives and as mentioned also plan to launch a new AD campaign in the quarter.
Unknown Attendee: We expect the rate of reinvestment to be modestly higher in the fourth quarter as we continue to focus on growth initiatives and, as mentioned, also plan to launch a new ad campaign in the quarter.
Unknown Attendee: At Book Publishing, overall we will face particularly difficult comparisons in the fourth quarter compared to the prior year. At News Media, we expect the segment to continue to benefit from ongoing cost initiatives, while advertising is likely to be volatile given the macro uncertainty. Also of note, we will lap the beginning of the cost savings from the commercial joint venture with DMG Media and the changes at TalkTV. As mentioned last quarter, we expect other segment costs to be higher than last year, including ongoing AI and related legal costs.
Speaker Change: At book publishing.
Speaker Change: Overall, we will face, particularly difficult comparisons in the fourth quarter compared to the prior year.
Speaker Change: At news media, we expect this segment to continue to benefit from ongoing cost initiatives, while advertising is likely to be volatile given the macro uncertainty.
Speaker Change: Also of note, we will lap the beginning of the cost savings from the commercial joint venture the DMT media and the changes at top TV.
Speaker Change: As mentioned last quarter, we expect the other segment cost to be higher than last year, including ongoing AI and related legal costs.
Operator: With that, let me hand it over to the operator for Q&A.
Speaker Change: 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.
Operator: We will now start the Q&A session. Please limit your questions to one per participant.
Operator: If you've joined via the Zoom application, please use the raise hand functionality to ask a question.
Speaker Change: If you've joined via the zoom application.
Speaker Change: <unk> used a raise and functionality to ask the question.
Operator: If you've joined via the audio line, please press star 9. Questions will be answered in the order they are received.
Speaker Change: If you joined via the audio line. Please press star nine.
Speaker Change: Questions will be answered in the order they are received.
Operator: We will now pause a moment to assemble the queue.
Speaker Change: We'll now pause a moment to assemble the queue.
Kane Hannan: Okay, our first question will come from Kane Hannan with Goldman Sachs. Please unmute your line and ask your question. Morning, guys. Thank you for the questions.
Speaker Change: Okay. Our first question will come from Kane Hannan with Goldman Sachs. Please Amit your line and ask your question.
Kane Hannan: Good morning, guys just thank you for the questions.
Robert Thomson: I suppose on the Dow Jones business, obviously the standout in the quarter, is there any more colour you can share around how we think about the rate of investment going into the fourth quarter? It did pick up a little bit this quarter. And just where that investment was, is that on the Dow Jones consumer or across the PIBs business? And I suppose how we think about that going forward as well would be helpful.
Speaker Change: During the business up through the standout in the quarter. Just is there any more color you can share around how do we think about the rate of investment going into the fourth quarter did pick up a little bit this quarter, and just where that investment was this I don't know.
Speaker Change: Humana or of course, the pizza business and also with how we think about that going forward as well would be helpful.
Robert Thomson: Kane, there was no particular startling increase in investment indulgence. We did make the acquisition and there were related acquisition costs that of Dragonfly and Oxford Analytica, which will add to the professional information business. But we are duly focused on both the consumer business where we are seeing that increase in ARPU that Lavanya spoke about on the last call, and we'll continue to do what's necessary and reasonable to drive that revenue. And secondly, with Peerball, I can say that we're consistently reporting double digit revenue increases in the key segments.
Speaker Change: Uh huh.
Speaker Change: There's no particular.
Speaker Change: Startling increase in investment in Belgium, we did make.
Speaker Change: The acquisition and the related acquisition costs.
Speaker Change: That is.
Speaker Change: Dragonfly, an Oxford analytics, which will add to our professional information business.
We are jewelry focused on both the consumer business, where we are seeing that increase in offers that loving you spoke about on the last call and we'll continue to do what's necessary unreasonable to drive that revenue and secondly, with with payable I can say is that we're consistently reporting double digit revenue increase.
Speaker Change: And the key segments and there's no reason to presume that those double digit increases will not continue particularly at risk and compliance and energy, where we have been adding new services modestly.
Robert Thomson: And there's no reason to presume that those double digit increases will not continue, particularly at risk and compliance and energy, where we have been adding new services modestly and creating new products, but charging a premium for premium As mentioned, the overall PIB numbers have been complicated by a fractious Activa relationship which had a 200 basis point impact on total revenue, but we are now beginning to let that issue. Overall, we are extremely confident about the continuing growth of both revenue and profits at the profession of the major.
Speaker Change: Creating new products about charging a premium for premium content.
Speaker Change: As mentioned the overall Pip numbers have been complicated by a fractious October relationship, which had a 200 basis point impact on total revenue, but we are now beginning to let that issue. Overall, we are extremely confident about the continuing growth of both revenue and profits at the professional information business.
Unknown Attendee: Thank you, Kane.
Kane Hannan: Thank you Kane look we will take our next question. Please.
Unknown Attendee: Luke, we will take our next question.
Entcho Raykovski: Our next question will come from the line of Entcho Raykovski with Evans and Partners. Please unmute and ask your question. Hi Robert, hi Lavanya. My question is also on Dow Jones. Just to follow up on the 200 basis point impact on FIB from the Factiva dispute, do you mind, just to clarify, do you expect a similar impact in the fourth quarter?
Speaker Change: Our next question will come from the line of Joe Rykowski with Evans and partners. Please on mute and ask your question.
Kane Hannan: Okay.
Speaker Change: Hi, Robert Hi, Loving Yeah. My question is I'll say on Dow Jones.
Speaker Change: Just to follow up on the 200 basis point impact on <unk> from the factory of a dispute do you mind just to clarify do you expect a similar impact in the fourth quarter and then longer term I'm just interested in any comments you could provide on where Dow Jones margins can get to you mentioned last quarter the edict.
Lavanya Chandrashekar: And then longer term, I'm just interested in any comments you could provide on where Dow Jones margins can get to. You mentioned last quarter that you'd expect margins to expand given people be a greater contributor to earnings. You obviously saw that 1.3% expansion in the quarter. So is there a longer term target you can share or even just some quantitative direction that would be quite useful?
Speaker Change: Spec margins to expand given people be a greater contributor to earnings I mean, she saw that 1.3% expansion in the quarter. So is there a longer term target you can share or even just.
Speaker Change: Now some quantity leave.
Speaker Change: Direction that would be quite useful thank you.
Speaker Change: Thank you until.
Lavanya Chandrashekar: Thank you, Entcho.
Lavanya Chandrashekar: I'll maybe start and then Robert can add on. On the FACTIVA dispute, look, as we cycle through it, as we start to lap it, I mean, the impact will start to reduce. So in the fourth quarter, I would expect a smaller impact than what we've seen in the third quarter, which was sequentially smaller than in the second quarter as well.
Speaker Change: Maybe soft and then drop it get an add on.
Speaker Change:
Speaker Change: Factiva dispute.
Speaker Change: Look as we cycled through it as weak as they start to lap. It I mean, the impact of that will start to reduce so in the fourth quarter, which I would expect a smaller impact than what we've seen in the third quarter, which was sequentially smaller than in the second quarter, thus far.
Lavanya Chandrashekar: On margins, here's how I think about margins on Dow Jones. First and foremost, the growth of the professional information service business, that really does help lead to margins, you know, the kind of strong growth that we've had on that. Uncharted 2, Just to reiterate what Lavanya said, as you know, the margin expanded from 21.7% to 23%. And there's every reason to believe that as that professional information business expands, so will the overall margin as that is a higher margin segment. PIB revenues now account for 39% of revenues, and a majority of profit. And that PIB share of the business is expanding quarter.
Speaker Change: On margins.
Speaker Change: Here's how I think about margins on Dow Jones are first and foremost the growth of the professional information service business.
Speaker Change: That really does help lead to margins and other kind of strong growth that we've had on that business of 6% this quarter.
Speaker Change: With risk and compliance up 11% and Dow Jones energy of 10% that definitely helps.
Speaker Change: Both with operating leverage as well as strengthening the mix the growth on the consumer business as well has that operating leverage and then you know the team as always continues to be focused on being very disciplined on costs as well and so that that also helps with margin growth.
Speaker Change: So essentially just to reiterate what you said.
Speaker Change: You know the margin expanded from 21, 7% to 23% and there's every reason to believe that as that.
Speaker Change: Actual information business expand so really overall margin as that is a higher margin segment.
Speaker Change: Pip revenues now account for 39% of revenues and the majority of profit and.
Speaker Change: And that people share of the business is expanding quarter after quarter.
Unknown Attendee: Thank you, Entcho.
Speaker Change: Thank you and Joe look we will take our next question. Please.
Unknown Attendee: Luke, we will take our next question.
David Joyce: Our next question will come from David Joyce with Seaport Research. Please unmute your line and ask your question. Thank you.
Speaker Change: Our next question will come from David Joyce with Seaport Research Amit Your line and ask your question.
David Joyce: Thank you given your very strong balance sheet position now I was wondering how you're prioritizing.
Robert Thomson: Given your very strong balance sheet position now, I was wondering how you're prioritizing the strategy going forward for capital allocation across internal investments, external investments, capital returns, and to the extent there are M&A opportunities, do you envision anything that would provide incremental connectivity among your business lines or be really still focusing on some of the core growth drivers, like professional business services? Thanks. David, when it comes to acquisitions, obviously, we can't be specific, but we can give general guidance and that is we have identified three core pillars and we will look for opportunities in those three areas.
Speaker Change: The strategy going forward for capital allocation.
Speaker Change: Cross internal investments external investments capital returns and to the extent there are M&A opportunities do you envision anything that would provide incremental connectivity among your business lines that would be really focusing on some of the core growth drivers like professional business services. Thanks.
Speaker Change: When it comes to acquisitions, obviously, we can't be specific but we can be give general guidance and that is we have identified three core pillars, and we will look for opportunities in those three areas. What we will certainly not do.
Robert Thomson: What we will certainly not do is squander our hard-earned cash by overpaying for businesses. I think you can see our record in that regard in recent years, dare I say, has been impeccable.
Speaker Change: Squander harder in cash by overpaying for businesses and I think you can see a record in that regard in recent years Dare I say has been impeccable but.
Robert Thomson: It's also true that we've received approximately $592 million Australian dollars in cash for the repayment of the Foxtel shareholder loans. Now, we've obviously been conscious of our responsibility as shareholders and that imperative will simply never wane. There has been, we've all been subject to a certain amount of market turbulence, but our share price as of the close today was just over 32% higher than a year ago. And look, we take that not as a conclusion, but as an increment. And it is fair to say we've been careful in marshalling our cash, maximising our investments and ensuring that returns through our dividend and a billion dollar buyback reflect those resources.
Speaker Change: It's also true that we received approximately 592 million Australian dollars in cash for the repayment of the Fox still shareholder loans.
Speaker Change: Now, we've obviously been conscious of our responsibility to shareholders and that imperative will simply never won there.
Speaker Change: There has been.
Speaker Change: And subject to certain amount of market turbulence.
Speaker Change: Our share price as of the close today was just over 32% higher than a year ago, and we take that not as a conclusion, but is in increments.
Speaker Change: And it is fair to say, we've been carefully monitoring our cash maximizing our investments and ensuring that returns through our dividend and $1 billion buyback reflect those resources.
Robert Thomson: Last fiscal, we returned 70% of our available free cash flow to investors and as was noted, we've been recently upgraded to investment grade by both Moody's and S&P. So clearly our optionality has really been great.
Speaker Change: Last fiscal we returned 70% of our available free cash flow to investors.
Speaker Change: As was noted we've been recently upgraded to investment grade by both Moody's and S&P. So clearly our optionality has really been greater.
Speaker Change: Okay.
David Joyce: Thank you David.
Unknown Attendee: Luke, we'll take our next question.
David Joyce: David look we'll take our next question please.
Craig Huber: Our next question will come from the line of Craig Huber with Huber Research. Please unmute your line and ask your question. Great. Thank you. Appreciate it.
David Joyce: Our next question will come from the line of Craig Huber with Huber Research. Please <unk> your line and ask a question.
Speaker Change: Great. Thank you I appreciate it.
Robert Thomson: Robert, I guess, first, congratulations on getting the Foxtel deal done. Should investors, if you guys think out over the next six to 12 months, expect you guys to rationalize, simplify the company any further? I mean, anything more potentially on the real estate side, where we have to maybe wait until maybe Realtor.com sort of turns the corner here in terms of revenue growth and margin profit enhancement, and also Factiva too. I mean, I go back a long way with Dow Jones. I mean, covering on itself like that was...
Speaker Change: Robert I guess first congratulations and the Fox Hill deal done.
Speaker Change: Should investors as you guys think out over the next six to 12 months expect.
Speaker Change: Guys to rationalize simplify the company further.
Speaker Change: Or potentially on the real estate side, where we have to maybe wait until maybe realtor dot com for turns a corner. If you were to revenue growth and margin and profit enhancement or and also factiva too I mean, I go back to the Huawei with Dow Jones cover on the sell side partners.
Robert Thomson: You know, Dow Jones is a stand-alone company of 20, 22 years ago, and never back then, in fact, Teva was in tough shape and, you know, still struggling, just looking, listening to the numbers and stuff, just wondering if that might be open to be, get it off the books. Thank you. Just further thoughts on simplifying the company. Thank you.
Speaker Change: You'll start as a standalone company or 2022 years ago and they were back then in fact tea business.
Speaker Change: Shape and still struggling.
Speaker Change: The numbers and so just wondering if that might be open to be off the books. Thank you for the thoughts and simplify the company. Thank you.
Robert Thomson: Sure. Craig, look, the Foxtel deal itself is a living, breathing example of our continuing willingness to make significant decisions about structure and focus in the interest of our shareholders. There's often much discussion about digital real estate and we obviously examine all segments But I think Craig, as you sagely, savvily noted on the last earnings report, The current state of the U.S. property market means that there's a significant under-appreciation of realtors' value. And whatever we may happen to do in whatever sector, we are focused on realizing maximum value for our shareholders. If you look at what we've done over the past few years, we are certainly not strategics and nambulists.
Speaker Change: Sure Craig the Fox Hill deal itself is a living breathing example of our continuing willingness to make significant decisions about structure.
Speaker Change: Focus in the interest of our shareholders.
Speaker Change: There is often much discussion about digital real estate and we obviously examine all segments, but I think Craig as you say easily Saturday Saturday noted on the last earnings call.
Speaker Change: Current state of U S property market means that there's a significant under appreciation of realtors value in whatever we might happen to do in whatever sector. We are focused on realizing maximum value for our shareholders.
Speaker Change: If you look at what we've done over the past few years we.
Speaker Change: We are certainly not strategic from the ambulance, we have a fairly clear vision of trends and challenges and opportunities and we are now in a prime position to take further advantage for both the short and long term advantage of our shareholders. The assets. We've retained a developed a world class as are our teams and dire insect is primed for growth.
Robert Thomson: We have a fairly clear vision of trends and challenges and opportunities, and we are now in a prime position to take further advantage for both the short and long-term advantage of our shareholding. The Assets we've retained have developed a world-class, as are our teams, and they are in sectors primed for growth. We've remained focused on increasing our asset value and reducing the implied discount to intrinsic value. Needless to say, we're trying to do that. means I am indulging in tautology. We have never been complacent, but we do have some reason to be complacent.
Speaker Change: Look we remained focus on increasing our asset value and reducing the implied discount to intrinsic failure.
Speaker Change: Needless to say, which means I am indulging in tautology, we have never been complacent, but we do have some reason to be confident.
Speaker Change: Thank you. Thank you Greg Thanks, Craig look we will take our next question. Please.
Unknown Attendee: Luke, we will take our next question.
Alan Glaude: Our next question will come from the line of Alan Glaude with Luke Capital. Please unmute your line and ask your question. Yeah, thanks for taking the question.
Speaker Change: Our next question will come from the line of Alan glad with loop capital. Please on the airline and ask your question.
Robert Thomson: Yes, thanks for taking the question Robert I'd like to talk about the the original portion of the Dow Jones business.
Robert Thomson: Robert, I'd like to talk about the the original portion of the Dow Jones business. My opinion is doing great. But the original one, you're continuing to grow subs. I know part of the strategy is converting people from promotional pricing to higher paying pricing. How is that? How is that endeavor going? Yeah, Alan, you're exactly right. pricing strategy at Dow Jones and total subs were 7% higher driven by digital subs, which runs 14% And we are very focused on average revenue per subscriber and seeing positive trends as the Dow Jones Dynamic Pricing Strategy is unfolding. I mean, that trend itself was reflected in the overall 7% increase in circulation revenues, which were up from 3% increase in the previous quarter.
Robert Thomson: <unk> is doing great, but the original and you continue to grow subs I know part of the strategy is converting people from promotional pricing to higher paying pricing how does that how does that is ever growing.
Robert Thomson: Yeah.
Robert Thomson: Yeah.
Robert Thomson: You're exactly right.
Robert Thomson: Our pricing strategy.
Speaker Change: Strategy at Dow Jones, and total subs were 7% higher driven by digital subs, which rose 14%.
Speaker Change: And we are very focused on average revenue per subscriber and seeing positive trends as the Dow Jones dynamic pricing strategies unfolding.
Speaker Change: That trend itself was reflected in the overall, 7% increase in circulation revenues, which were up from 3% increase in the previous quarter now the Dow Jones team is rather confident that the phasing of subscribers from discounted entry level offices offers.
Robert Thomson: Now, the Dow Jones team is rather confident that the phasing of subscribers from discounted entry-level offers to more standard pricing is proceeding well. And that strategy will be reflected in the digital numbers in coming quarters. And by the way, in total at Dow Jones, our digital contributed to 82% of revenues.
Speaker Change: To more standard pricing is proceeding well.
Speaker Change: And that strategy will be reflected in the digital numbers in coming quarters.
Speaker Change: And by the way in total at Dow Jones digital contributed to 82% of revenues. So we are talking about a company that certainly contemporary and character and a powerful digital platform on which to build.
Robert Thomson: So we are talking about a company that's certainly contemporary in character and a powerful digital platform on which to build.
Unknown Attendee: Thank you, Alan.
Speaker Change: Thank you. Thank you.
Unknown Attendee: Luke, we'll take our next question, please.
Speaker Change: Thanks, Alan look we'll take our next question. Please.
Unknown Attendee: Yes, and as a reminder, if you've joined via the Zoom application, please use the raise hand functionality if you'd like to ask a question.
Speaker Change: Yes, and as a reminder, if you have joined via the zoom application. Please use the raise hand functionality if you'd like to ask a question if.
Unknown Attendee: If you've dialed in today, please press star nine to raise your hand.
Speaker Change: If you've dialed in today, Please press star nine to raise your hand.
Evan Karatzas: Our next question will come from Evan Karatzas with UBS. Please unmute your line by pressing star six to ask your question. Okay, hi, thanks. Just maybe follow up on that with the higher price plan, moving customers to higher price plan. Just can you talk to, I guess, the churn impact from those customers moving to the non-promotion plans? And I guess also any learnings from that in terms of the elasticity of those consumer subs? And I guess maybe more medium term, if potentially price increases could be more of a theme going forward that might help with continued ARPU growth for that consumer subs business, please.
Speaker Change: Our next question will come from Evan <unk> with UBS is Amit your line by pressing star six to ask your question.
Speaker Change: Okay. All right. Thanks, just maybe follow up on that with the high priced plan moving customers to higher priced Brian just can you talk to I guess, the the churn impact from those customers moving to the non promotion plans and I guess also any learnings from that in terms of the elasticity of those consumer.
Speaker Change: Subs and I guess, maybe more medium term potentially price increases could be more of the same.
Speaker Change: Forward that might help with continued <unk>.
Speaker Change: Growth for that.
Speaker Change: Consumer subs business place. Thanks.
Robert Thomson: Thanks. Evan, we're learning every day about price elasticity, which is really the kernel of the dynamic pricing system that's been deployed by the team at Dow Jones. Obviously, advanced AI is making that process somewhat easier. You're able to identify certain cohorts where you do have more elasticity, and you are able to identify certain cohorts where there may be some vulnerability. So over time, there's no doubt the aim is to reduce churn and maximise revenue, and we have both the expertise and the tools at our disposal.
Speaker Change: Even where we're learning every day about price elasticity, which is the really the kernel of the dynamic pricing system, that's being deployed by the team at Dow Jones.
Speaker Change: Obviously advanced AI is making that process.
Speaker Change: Somewhat easier.
Speaker Change: You're able to identify certain cohorts, where you do have more elasticity and you are able to identify certain cohorts.
Speaker Change: There might be some vulnerability and so over time.
Speaker Change: There's no doubt the aim is to reduce churn.
Speaker Change: And maximize revenue and we have both the expertise and the tools that are disposal.
Evan: Thank you Evan look we will take our next question. Please.
Unknown Attendee: Luke, we will take our next question.
Unknown Attendee: At this time, we have no further questions.
Speaker Change: At this time, we have no further questions I'll hand, the call back over to Michael Florin for closing remarks.
Michael Florin: I'll hand the call back over to Michael Florin for closing remarks. Well, thank you, Luke, and thank you for all the investors for participating. We look forward to talking to you shortly and have a wonderful day.
Michael Florin: Well, thank you Luke and thank you for all the investors for participating we look forward to talking to you shortly and have a wonderful day.
Michael Florin: Bye for now.
Speaker Change: Bye for now.