Q3 2025 News Corp Earnings Call
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.
Michael Florin: Thank you very much, operator, everyone and welcome to News Corp. 3, 2025 earnings call.
Speaker Change: We issued our earnings press release about 30 minutes ago, and now posted on our website at newscorp.com On the holiday of Robert Thomson, Chief Executive, and Lavanya Chandrashekar, Chief Financial Officer. We'll have some repair remarks and we'll be happy to take questions from the investment community.
Speaker Change: This call may include certain forward-looking information, with respect to News Corp's business and strategy, Axelzot's Condiver materially from what he said. News Corp's form 10K and form 10Q filings identify risks and uncertainties that could cause Axelzot's to divert and contain cautious statements regarding forward-looking information.
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-GAAP reconciliation to such measures can be found in the earnings release for the applicable periods posted on our website.
Speaker Change: With that, I'll pass over to Robert Thomson for some opening comments.
Robert Thomson: Thank you, Mike. These sustained strength of News Corp's third quarter results reflect 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 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 a femoral and that the US has the potential for robust growth when the heavens return
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 sasely of the power of the invisible hand, he did not envisage an economic slap in the face from the unruly introduction of exuberant terrors.
Robert Thomson: America's animal spirits do need emancipation from the cage of uncertainty.
Robert Thomson: As for our company, net income from continuing operations rose 67% to $107 million in third quarter compared to the prior year. While revenues were $2 billion a head 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%
Robert Thomson: Third 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: Following the close of the quarter, we concluded the sale of Foxdale to DeZone, highlighting our intention to concentrate investment on three core pillars of growth. Dad Jones, Digital Real Estate, and Book Publishing.
Robert Thomson: The transactions or the transfer of $724 million US dollars of Foxdale debt of our balance sheet and the direct repayment of $592 million Australian dollars in shareholder loans to News Corp
Robert Thomson: We also received an equity interest of approximately 6% in the fast-growing design, which is a world leader in sport 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. [inaudible]
Robert Thomson: The transaction is expected to be earnings accretive and improve our return on invested capital. As we noted last quarter, Moody's and S&P have both upgraded the company to investment
Robert Thomson: David. 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 Salah Fox tell, we are continuously exploring structural options to maximize returns for our shareholders.
Robert Thomson: The sempatonal importance of quality journalism cannot be underestimated in the midst of the current political milestone.
Robert Thomson: It is imperative that journalists focus on facts, a task complicated by faux-fat checking at a time when even science from climate to medicine has become politicized and polarizing.
undermining the 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.
Robert Thomson: We are pleased with our principal partnership with OpenAI and trusted other AI operators, Strip Money Hour Intellectual Property, fully appreciate their responsibilities to our company, to create activity and to the community.
Speaker Change: 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 rights. [inaudible]
Speaker Change: Patently, blatantly, we believe some AI companies are still in contact.
Speaker Change: 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. [inaudible]
Speaker Change: And we expect the AI anarchists will surely have done the same with truth, social, perloiting content and data to fuel their economic engines.
Robert Thomson: Returning to our results, Dar Jones was a highlight. We foresaw an improvement in the quarter and that expectation was definitely realised.
Robert Thomson: Darren Jones posted a healthy 6% revenue growth, while profitability surged 12% and the margin rose from 21.7% to 23%.
Robert Thomson: There is still much toil ahead as Alma and the trusty team realise, but we saw a digital circulation review expand 14%, the fastest growth rate in almost three years, and recorded improvement in digital RPU year over year and quarter over quarter, while total consumer subscriptions surpassed the 6 million milestone.
Robert Thomson: Since our 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.
Robert Thomson: The rather active news cycle has unsurprisingly contributed to further increases in audience traffic and subscriptions in recent days.
Robert Thomson: 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 energy. [inaudible]
Robert Thomson: Risking compliance posted 11% revenue growth despite unfavorable 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.
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.
Robert Thomson: Meanwhile, Dow Jones energy posts 10% revenue growth as we invested in product offerings and built on unique pricing products and real-time analysis.
Robert Thomson: 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
Robert Thomson: The Dow Jones team expects it factoever which has been an unfortunate drag on professional information revenues should improve incoming quarters as we cycle past the unfavorable impact of a contentious client dispute.
Robert Thomson: REA posted 6% revenue growth or 11% on a constant currency basis thanks to a 15% increase in yield
Robert Thomson: 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
Robert Thomson: 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: Damien Eels and the real-to-team thrive on competition and are gaining audience and user loyalty, pulling further ahead of Redfin and Holmes.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,
Speaker Change: Total visits to the site reach 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.
Speaker Change: While our 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 homebrewed metrics.
Speaker Change: In book publishing, in a relatively slow season, with Brian Murray's guidance, revenue expanded by 2% to 514 million dollars, and EBITDA rose 3% to 64 million dollars. Thanks in large part to the recent acquisition of German book publisher, Grafer and Unser.
Speaker Change: Additionally, digital revenues grew 3% as audio books continued to prosper, including contributions
Speaker Change: We saw strength from Gregory McGuire's latest addition to the Wicked Universe, Alfie, along with other standards, such as Tessa Bailey's Dreamgirl Drama and Alex Astor's Summer in the City.
Speaker Change: 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 quarter.
Speaker Change: We expect that burgeoning site will add to our network effect as a final for realtor.com and our media sites which in turn will drive traffic to Bible Gateway.
Speaker Change: In a coming quarter, we are excited by the release of the paperback of Shelby Van Peltz-Perseller remarkably bright creatures. Along with, on democracies and death cults by Douglas Murray, I wish someone had told me by Daniel Perino and Uptown Girl by Kristi Brinkley.
Speaker Change: Harper Collins had 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.
Speaker Change: At News UK, Under Rebecca Broxley to ship, 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: Meanwhile, we launch the Sun Club in February , which provides premium journalism and exclusive office to members.
Speaker Change: 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 pose such a broad and deep readership from the corner office to the over office.
Speaker Change: News Corp Australia's Masters provide an important platform for informed reporting and debate during the recent election campaign. And we also saw continued growth in digital subscriptions reaching 1.1 million.
Speaker Change: Meanwhile, news.com.au was the number one digital news brand in page views, achieving 292 million per month in March according to IBSOS.
Speaker Change: and Sky News, Australia, was the country's number one YouTube news channel with 5.5 million subscriptions reflecting its local and global reach.
Speaker Change: The strength of our results through the first 3-quarters of the current rather colorful fiscal year speaks to the meaningful metamorphosis that began a decade ago.
Speaker Change: That transformation simply would not have been possible without the leadership of our chair, Lockham Murdoch, and Chairman Emeritus Rupert Murdoch, and a thoughtful and thoroughly engaged board.
Speaker Change: 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.
Speaker Change: And now, I turn to our esteemed, erudite chief financial officer Lavanya Chandrashekar to provide further insight into our third quarter results.
Thank you for watching!
Thank you Robert and good afternoon.
Speaker Change: I'd like to start by reinforcing our distinguished chief executive's 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.
Moreover, the majority of our revenue is now digital.
Speaker Change: This is expected to drive faster growth with less capital intensity and hence a higher return
Speaker Change: Ostrong Balochit and Steady Cash Flow enables us to maximize shareholder value creation.
Speaker Change: During these turbulent times, as you would expect from News Corp, we are monitoring trends closely.
Speaker Change: As things stand, the direct impact of tariffs on News Corp is expected to be in material.
Speaker Change: Of note, at present, newsprint is excluded from additional tariffs as are children's and Christian books imported from China.
Speaker Change: In these volatile times, we will continue to focus on what we can control and will seek to take constant action as necessary.
Speaker Change: Turning to the quarterly results, which I pleased to report were again strong.
Speaker Change: As a reminder, Fox-Tel's financial results are reflected as discontinued operations for the fiscal 2025 and 2024-3rd quarter and year-to-date periods, and subscription video services is no longer a reportable segment.
Speaker Change: News Corp reported fiscal third quarter revenues on a continuing operation's basis of $2 billion, rising 1% year over year and total segmenting bitter of $290 million, increasing 12% year over year.
Marginson proved by 140 basis points to 14.4%
Speaker Change: This quoted Dow Jones and digital real estate contributed 88% of profitability.
Speaker Change: For the quarter, we reported earnings from continuing operations per share of 14 cents compared to 7 cents in the prior year. Adjusted earnings from continuing operations per share was 17 cents in the quarter compared to 13 cents in the prior year.
Speaker Change: 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 period, and was again the largest segment contributed to overall companies' avenue, and for this quarter, also to total segment
A modest improvement from the second quarter impact.
Speaker Change: Risk and compliance grew 11% to $84 million with the growth driven by new customers, new products and improved yield.
Speaker Change: At Dow Jones' energies, Avenue grew 10% to $69 million, with customer attentions remaining very strong at over 90%.
by the acquisition of Dragonfly and Oxford Analytica.
At Energy [inaudible]
Speaker Change: 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 move customers from introductory and bundled promotions to
Speaker Change: Digital R. Poo also increased quarter over quarter and year over year.
Speaker Change: Also 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 year.
Speaker Change: 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 edition since the third quarter of 2024.
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.
Speaker Change: Digital represented 63% of advertising revenues in line with the prior.
Speaker Change: Dow Jones segmented the death of the quarter grew 12% to $132 million with margins increasing to 23%
Moving on to Digital Real Estate. [inaudible]
Speaker Change: 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.
Speaker Change: Segment EBITDA was $124 million, up 19% and up 25% on an adjusted basis.
Speaker Change: RAA revenues rose 6% year-on-year to $271 million, which included a $14 million adverse impact
R.A. revenue grew 11% on a constant currency basis.
Speaker Change: Gould was driven by a combination of residential yield increases and customer contract upgrades.
Speaker Change: Residential yield growth improved by 15%. Mistings in the quarter were flat compared to the prior, with listings in Sydney up 4% and Melbourne down 3%.
Speaker Change: Listings benefited from Easter falling into the fourth quarter this year, but were negatively impacted by floods in Queensland.
Speaker Change: Please refer to RA's earnings release and their conference call for more details.
Speaker Change: Realtor's 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: At Rear Talk, lower referral and lead generation revenues were more than offset by robust growth from adjacent fees.
Speaker Change: Rear to our continued to show strong growth from new revenue streams such as Salar, Newhomes, and Rentals, which now represent 22% of revenues.
Speaker Change: Randall's in particular was notably strong driven by the partnership with Cello.
Speaker Change: 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 soft lead volumes.
This shift, combined with the persistent affordability issues
and home sales volatility.
Resulted in lead volumes declining 17%
Speaker Change: While average monthly unique users for the quarter fell 8% year over year to 66 million at realtor.com.
Speaker Change: Expenses that Realtor came in better than we had initially forecasted, driven by the shift of a new brand campaign to the fourth quarter.
Speaker Change: At Book Publishing, As Expected, The Facing of Frontless Titles weighed on performance this quarter.
Speaker Change: The third quarter results included the recently acquired German book publisher.
Speaker Change: The strong performance from Christian publishing and continued growth from the UK, offset lower general book sales due to timing of front-placed releases compared with the third quarter last year.
Adjust the driving use for flat.
Speaker Change: Harper Collins 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: In total, digital sales represented 25% of consumer revenues flat compared to the prior year.
Speaker Change: The backlist contributed 65% of consumer revenues up from 63% last year.
Speaker Change: Revenue for the quarter was $514 million, down 8% versus the prior year, while adjusted revenues fell 6%.
Speaker Change: Sadmati Bidav 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 cost and further cost initiatives at News Australia.
Telling to the outlook.
Some of the teams across each of our segments [inaudible]
Speaker Change: At Dow Jones, the team remains focused on B2B 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.
Speaker Change: At Digital Real Estate, Australian residential Dubai listings for April were down 11% which was most impacted by the timing of public holidays.
Please refer to RAA for more detailed outlook commentary.
Speaker Change: Wilter.com will continue to focus on technology improvements and enhance content and product offerings.
Speaker Change: We expect a rate of reinvestment to be modestly higher in the fourth quarter as we continue to focus on the growth initiatives and, as mentioned, also planned to launch a new ad campaign in the quarter.
Speaker Change: At Book Publishing, overall, we will face particularly difficult comparisons in the fourth quarter of the prior year.
Speaker Change: 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.
Speaker Change: Also of note, we will lap the beginning of the cost savings from the commercial joint venture with DMG Media and the changes at Talk TV.
Speaker Change: As mentioned last quarter, we expect other segment costs to be higher than last year, including ongoing AI and related legal costs.
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 for participant.
Speaker Change: 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 audio line, please press star nine
Questions will be answered in the order they are received.
We'll now pause a moment to assemble the queue.
Speaker Change: Okay, our first question will come from Kane Hannan with Goldman Sachs. Please unmute your lines and ask your question.
Kane Hanan: Good morning, guys. Just thank you for the questions. I've spoken with the adjunct business up to the standout in the quarter. It's very more color 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, this add-on on sort of the adjunct in Tumor or across the pips business. And I spoke how we think about that going forward as well, would be helpful.
Kane Hanan: Jane, there's still a particular startling increase in investment urgent. We did make the acquisition and there were lighted acquisition costs.
that have...
Kane Hanan: Dragan Tyron, Oxford Analytica, which will add to the professional information business.
Kane Hanan: But we are Julie focused on both the consumer business where we are seeing that increase in our business.
Kane Hanan: Lavanya spoke about on the last call, I will continue to do what's necessary and reasonable to drive that revenue and secondly with...
Kane Hanan: and creating new products about charging a premium for premium content.
Kane Hanan: 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 machine business.
Speaker Change: Thank you, Kane. Luke, we will take our next question, please.
Speaker Change: Our next question will come from the line of Entcho Raykovski with Evan the Partners. Please unmute and ask your question.
Enzo Rakofsky: Hi, Robert. Hi, Lavanya. My question is also on Dow Jones. Just to follow up on the 200 basis
Impact in the fourth quarter, and then longer term.
Speaker Change: 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. I mean, you obviously saw that 1.3% expansion in the quarter. So, is there a longer term target you can share or even just, you know, some...
quantitative direction that we call ESO. Thank you.
Speaker Change: Thank you, Entcho. I'll maybe start and then Robert Kaden add on. On the fact that he redistributed...
Speaker Change: 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. 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 business. That really does help lead to a bigger impact than what we've seen in the third quarter as well.
Speaker Change: of 6% this quarter, with risk and compliance of 11% in Dow Jones Energy of 10% that definitely helps both with operating leverage as well as with sweetening the mix.
Speaker Change: The Growth on the Consumer Business as well helps with operating leverage. And then the team, as always, continues to be focused on being very disciplined on costs as well. And so that also helps with margin growth.
David Karnovsky, David Karnovsky,
Speaker Change: Yes, Andrew, just to reiterate what Lavanya said, as you note, the margin expanded from 21.7% to 23% and there's every reason to believe it as that.
Speaker Change: Professional Information Business Expand, so will he, overall margin, as that is a high margin segment. PIB revenues now account for 39% of revenues and a majority of profit and that PIB share of the businesses expanding quarter after quarter.
Speaker Change: Thank you, Entcho. Luke, we will take our next question, please.
Speaker Change: Our next question will come from David Joyce with Seaport Research. Please come to your line and ask your question.
Speaker Change: Capable Returns, and to the extent there are M&A opportunities, do you envision anything that would provide incremental connectivity among your business lines? There would be really still focusing on some of the core growth drivers like professional business services. Thanks.
Speaker Change: David, when it comes to acquisitions obviously, we can't be specific, but we can be, give general guidance and that is...
Speaker Change: Skwanda, Harden Cash by Overpaying for Businesses, and I think you can see our record in that regard in recent years.
Speaker Change: Now, we've obviously been conscious of our response to the shareholders and that imperative will simply never wane.
Speaker Change: 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 have a 32% higher than a year ago and look we take that not as a conclusion but as an increment. [inaudible]
Speaker Change: And it is fair to say we've been careful in marshalling our cash, maximizing our investments and ensuring that returns to our dividend and a billion dollar buyback reflect those resources.
Speaker Change: 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 greater.
Thank you.
Thank you, David. Thank you, David. Look, we'll take our next question, please.
Speaker Change: Our next question will come from the line of Craig Huber with Huber Research. Please I'm your line and ask the question.
Craig Huber: Robert, I guess first congratulations in the Fox Health you all done. June Vasily, is you guys think out of the next six to 12 months except?
Craig Huber: You guys are rationalized, simplified, the company any further. I mean, anything will potentially on the real estate side, where we have to make you wait until they be realtor.com, sort of terms of a horner here in terms of revenue growth and margin, profit and hand spent.
Craig Huber: Or, it's also fact cheaper too. I mean, I go back a long way with Dale Jones. I mean, cover it on the cell site that was...
Craig Huber: But, you know, that was a standalone company of 2020, two years ago. And I'm never back then. In fact, he wasn't...
Craig Huber: Top Shape, and it's still struggling, just looking at listening to the numbers and stuff. Just wondering if that might be open to be getting off the books. Thank you just for the thoughts on simplifying the company. Thank you.
Speaker Change: Sure. Craig, the Fox Town deal itself is a living breeding example of our continuing willingness to make significant decisions about structure and focus in interest of our shareholders.
Speaker Change: There's often much discussion about digital real estate, and we obviously examine all segments, but I think Craig is you, sage Lee, savvily noted, on the last earnings call.
Speaker Change: The current state of the US property market means that there's a significant underappreciation of realtor's value and whatever we may 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 are certainly not strategic some nameless. 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.
Speaker Change: The assets we've retained are developed at world class as are our teams and they are in sectors primed for growth. Look, we remain focused on increasing our asset value and reducing the implied discount on intrinsic value, a needless to say which...
Speaker Change: I am indulging in tautology. We have never been complacent, but we do have some reason to be confident.
Speaker Change: Thank you, Craig. Thanks, Craig. Luke, we will take our next question, please.
Speaker Change: David Karnovsky, David Karnovsky, David Karnovsky,
Speaker Change: Our next question will come from the line of Alan Glad with Luke Capital. Please unmute your line and ask your question.
Alan Glad: Yeah, thanks for taking the question. Robert Deux talked about the original portion of the Dow Jones business. My pivot is doing great, but the original on your continued growth subs. I know part of the strategy is converting people from promotional pricing to higher paying pricing. How is that? How is that the endeavor going? Thank you.
David Karnovsky, David Karnovsky, David Karnovsky, David Joyce,
Speaker Change: You're exactly right in praising our strategy at Dow Jones, and Hodul Sub's worth 7% higher, driven by Digital Sub's, which runs 14%
Speaker Change: We are very focused on average revenue per subscriber and seeing positive trends as the Dow Jones dynamic pricing strategy is unfolding.
Speaker Change: 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.
Speaker Change: Now, the Dow Jones team is rather confident that the phasing of subscribers from discounted entry level offices offers to more standard pricing is proceeding well and that strategy will be reflected in the digital numbers in coming quarters.
Speaker Change: And by the way, in Toto at Dow Jones, our digital contributed to 82% of revenues. So we are talking about a company that's certainly contemporary in character and a powerful digital platform on which to build.
Speaker Change: Thank you, Alan. Thanks, Alan. A little cool. Take our next question, please.
Luke: Yes, and as a reminder, if you join the Zoom application, please use a raise hand functionality if you'd like to ask a question.
Luke: If you've dialed in today, please press star 9 to raise your hand.
Luke: Our next question will come from Evan Kratz with UBS. Please unmute your line by pressing in Star Six to ask your question.
David Karnovsky, David Karnovsky, David Karnovsky, David Karnovsky,
Speaker Change: Okay, thanks. Just maybe follow up on that with the high price plan, moving customers for high price plan. Can you talk to, I guess, the churn impact from those customers moving to...
Luke: 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 terms, potentially pricing increases could be more of a theme going forward that might help us continue our pro growth for that consumer subs business place. Thanks.
Speaker Change: 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.
Speaker Change: Obviously, Advanced AI is making that process somewhat easier as you're able to identify certain cohorts where you do have more elasticity and you are able to identify certain cohorts.
Speaker Change: where there may be some vulnerability. And so over time, this note out, the aim is to reduce churn and maximize revenue, and we have both the expertise and the tools at our disposal.
Speaker Change: Thank you, Evan. Luke, we will take our next question, please.
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: Well, thank you, Luke, and thank you for all the investors participating. We look forward to talking to you shortly and have a wonderful day.
Bye for now.