News (NWS) 8 Aug 202020 Q4 Earnings call transcript

Good day, everyone. Welcome to the News Corp Fourth Quarter Fiscal 2020 Conference Call. Today’s conference is being recorded. Media will be on a listen-only basis. And at this time, I would like to turn the conference over to Mike Florin, Senior Vice President and Head of Investor Relations. ahead. go Please

it’s much, Corp’s very issued everyone, welcome ago, and earnings at our Thank newscorp.com. Fourth Nicole. Quarter News and hour an Fiscal release We posted XXXX to on press website you about Hello, now Earnings our Call.

today certain Thomson, from be we’ll include the what call information Financial take and questions Chief investment to business Chief happy Susan community. News may then call said. is results and On We’ll remarks, open and Executive; with respect strategy. Panuccio, the This from Officer. could forward-looking with are Robert some prepared Corp’s materially differ to Actual

regarding News that Corp’s actual and results XX-Q filings XX-K statements Form differ could information. identify forward-looking risks cause and and to uncertainties cautionary Form contain

will can measurements to Additionally, our found EBITDA, opening EPS. include total segment and financial for Thomson measures segment GAAP earnings comments. Definitions over With and I’ll certain some such as be non-GAAP adjusted of pass such EBITDA it adjusted that, to in Robert release. reconciliations this non-GAAP call

Thank Mike. you,

thanks have and workplace that to quarter, cope businesses they cash responded intelligently enough were that fourth and of call all to for worth each ingenuity. Preserving in And to the the adjusted having all a so and promptly, obviously Without families Revenue There has home, and in the challenging say testing of as when XX. noting the of and our the and to America company’s response of work the our has majority doubt, expediting with in consequences sincere trust so our complex about and to of across is at the But income digitization our established will who cash revenue of circumstances. volatility with businesses. have times, a are million robust and June balance like there not been Corp. The to reduced of comparisons able continuity. our agility virtually disruption. manner. few made News initially last I prompting changed details the seen EPS culture in COVID. families by provide core These quarter touched has coronavirus world ensure customary been the News and doubt, vast was declined net your itself. working increased resilience certainly some it express employees without these costs, Marketing their all sometimes Susan been our for billion Unruly, that irrevocably in been $X.X was sale adaptation the more pre-existing momentarily. in our businesses my by and component our non-cash $XXX and to Evidence and primarily of habits affected The and And are were and prudently practices in much faring painfully businesses that businesses impairments, I over of has on at so Australian thoughtfully UK would been plus complex at quarter affected Obviously, XX%. the employees by digital by have be me are responded trends, are necessary accelerated. Let introspection well. and priority,

to York had by quarter, for And significant we a and This beginning segment EBITDA results what simplified highlight profit incontrovertible This somewhat those Jones value what profile the EBITDA believe XX%. separate the this prospects total transparency, in the and Dow of transparent. a and the professional presenting The difficult recall reported its that New make been is and and simplify year preeminence for segment. Regular and information declined we earnings we many certainly strength modest more of pledged In to segment two increase superior based call. sale adjusted Unruly are in and in Street a America as structure. facts: of Marketing business quest News that the its substantial are a company of the listeners the on Dow Times. company companies, growing will media a the our Journal. Jones historic the XX% has However, Wall will particularly

Times as the but Sunday may is audiences information The Media increasingly and titles, News Times, properties well record and Australian our which digital segment, Sun virtually other had include during mastheads of the digital-only: global digital Our are many personality, in which segment in our The will It and of News mastheads Virgin now and as be gathered Media, called year. Radio. Talksport obviously, the all are

noxious Our nonsense web. delivering journalists crisis, proliferating information the providing COVID have on providing insights readers crucial and accurate theories elsewhere performed an conspiracy analysis admirably to the during antidote to in and and

closure epochal focus rightsizing digital on the and to our was audience our and many continuing significant The resulting willingness are businesses is while decisive of Australia cost emphasis on digital our acquiring be of moment. which of editions digital-first, in print be reductions. to We in subscribers to at further necessarily an evidence storied

believe than journalism. always and in we the the role the is less profitable We in a But titles future community. these the And reincarnation traditions, we proud invest important are very will best very their firmly of that a function. and ensure digital continuing of our will format

reviewing restlessly ensuring view constantly portfolio that to a also we with asset optimum are have the We our mix.

the that our Damian indications led our of call that their forsaken many a and CTO, of CFO, it expect most service volunteered other around a of David have materially by cuts form mission the understand genuinely and Head able transform Susan with also early a are bonuses, from All the compensation. service from which of we a their executives, testing executives who on strategy, Pitofsky, chunk has a reduce to internationally Australia and voluntarily cost impact given HR, so we launched will hefty large their have and shared importance this program The the are of of All and Counsel, of two bottom and should up The in with is many Jane have meaningful Panuccio program UK, part our are be me XXX% meaningful our shared Executive tandem costs The bonus. our by on Chairman the General talented of we stringent Global Susan. have understand executives our businesses functions. his in centralizing bonus, words, believe these appreciably line. our our to company that our Viner being to positive of Eales times

be creativity, We integrity enhanced always prioritize will and by emphasize our the imperative program. projects ability will to but

we to digital testimony who on on on having We last our platforms our One is is companies at Sims a the the just is impact fair in the the with week among the have business the has enhanced. a issues interviews. the tech certainly that has read Brussels, the seeking is terms recommend our businesses recent best-in-class also to ephemeral of ecosystem earnings. titans say, Australia, coordination will technology will watched that a change true but draft where trade and to available are be without would expect understanding lowest price. And Those This not already vastly overall that discussion that the trend cooperation we of our improved. of political code other an with earnings, Google these the Sims and the ACCC mandatory be Mr. you in name of Rod London ACCC. level platforms. and has chairs deep noticed congressional of and way one that do contact. begun That the introduced few have evolve. by project, anyone I the fundamental the It an believe overall absolutely we appreciable details his enlightenment, revealing of impact in

and over For been simply the the issue been in News Murdoch well a favorable would board this without and decade, content. premium Lachlan when backed of outcome support advocacy for principle of has the of this News alone have stood leadership often not which pursuit possible which even a premium Corp Rupert a Corp, for pursuing of

XX% of to revenue that most of making our down the June. revenues revenue representing surpassed quarter. billion revenues, the Barron’s subscriptions Equally the a history, continues, year sites, numbers. the XXXX than Dow month new full advertising margins. $XX up and users with website fiscal Digital quarter. highest – full Journal in segment numbers segment increasing the digital I’ve as million QX X% and annual $X the impressive, We segment fourth the media towards as Street the and the mentioned. in Wall were the advertising XX%, revenue general doubled affected first volume year-over-year Jones XXXX results. the shift COVID XX% quarter for only more segment, At year profitability At revenues year In Dow XX% represented and the was for record-breaking the Group. it was in of growth, for MarketWatch, Jones reported source improved time the in saw a contrast EBITDA was to for in Now for million, circulation in XX% finance to third digital as of unique strong rising digital-only with in separation, highest XX% in in row of brand’s total $XXX fiscal

particularly X% in XX%. that expect year. digital information our was which the higher of that be Dow despite many regulatory for Risk advertising cautious by and the continue driven Compliance digital business, We professional given robust We rose pandemic Compliance, are & will companies scrutiny commercial digital the the world. by around seeing advertising year impact, the & revenues the Full X% has year-over-year, given for Even Risk the prompted for outpace intensification remain social print, we surged with volatility business to prospects spend. excited marketing to at Jones

this compelling maximize the necessity York market our flow vast, the of of given on the you a have noted actionable a Dow us increased a Street trusted by an of intelligence have not well-healed, product We past, and business does highly well-informed growing trial Jones the contend compliance? Institute and undervalued of trajectory, audit and Journal creation the New risk the for world’s highly enhancing expanding according clients. software measures, newspaper ensuring general The business part Dow both need. to minimize lucrative of allows company, to and our the call business segment an most all risk-related & complemented to we provider. a are The analysis and Compliance and direct and Jones is Wall thoughtful of the is feeds on undervalued is in U.S. revenue Reuters As news value-added We Times, and better. audience for the expanding Board far who still companies want the upsell our individuals lines, in the Journal among digital products And Risk make that compliance. provides with leading to audience serve specialist comparison The the opportunity use important performed to that a most to

a stability comparing Here information EBITDA New of companies Times, million benefited segment business. Jones from few than the professional York in higher vibrant metrics of the Dow having are was two for $XX quarter. our the

this significant Dow EBITDA by X X% at revenue for digital percentage rate than lower advertising New Dow In Times. Times margins a the The at X% than expanded versus XX% down higher which XX.X%, points declined than at York down higher thanks declined in Dow York Dow New segment The about advertising year-over-year, to York COVID-affected the COVID, Jones decline by outperformance were time moderated York just down Times, largely at New rate a Jones revenue Dow much New The Times. X% times over Jones XX% Times. at EBITDA Jones of versus was While X%. Jones

and hundreds launch sold you and challenging immediate those Dow than News Digital These Jones had month, the Dow In the apart million Dow to also The globally relationship which shareholders you UK, Sun more give In as fiscal and XX% as of reflects The launch an ad of end of Corp newswire In generated challenges. Jones and opportunity rose audience strongly a Australia from Keith increase on extraordinary course, and retention service measures was subscribers that which expanded year, necessary an Australian the with virtues year. Jones the have myself, Investor in NAM explain total and both Unruly year-over-year and of to fact, so the associated June shareholders Times should publications we as year, in and confront New unique from the of in rose to with press subscriptions The will edition. York well and project. nearly feel Sir migrating prompt Executive, reported The dollars shared online The reductions potential aforementioned other across AAP unfortunately, of a sales of our only, premium XX% at took paid historic the digital concomitant XXX expansion the U.S. Almar improvement for company’s the in News investment by during Latour, cost rates. Jones granular we the a Executives for Sunday and Times Day toto, our by a end attracting strategic of markedly Australia, included was redundancies. potential the News and interrogate. explanation a XXX,XXX, with implemented XXXX Murdoch. of benefited including also segment, XXX,XXX Chief to service The focus of Media The we we to in users to will Meanwhile, at Sun’s an X in Times. We more subscribers founded the U.S. mid-September Dow

past chains of In now can QX. was physical publishing, in the a actions been profitability increased Post. news XXX users to supply prices The cost changes Post readership digital been reach The benefited has New network The long known UK the from should cover sheer to the The revenue at which testament We clear us and bolster resourcefulness unique the months fallen is leading our Post losses Importantly, This and which behavior the to In U.S., be Pamco. pandemic. the moved underestimated. for the those most remains quarter. that path the shutdown viral scale York in the during have but U.S. base. the reduced as of monthly in in the loss-making, It emphasize brand make XX not has Sun reached as dramatically during HarperCollins, a of our the ad despite digital These reading sales. e-books stores, for team included million profitability of to book and collective fourth expanding allowed we see and The vicissitudes, according quickly to online near up

with of the As and we QX half second HarperCollins both calls, EBITDA had on propitious year that performed Applegate Table improvement series, by One than the the indicated at Parents of and QX. more House Magnolia latest fiscal Bob and well previous titles was segment the first Williams. Among Only by Patchett, in successful were David half, by Katherine Ann The Worst Dutch the highly installment Joanna Gaines' World’s

Time. fiscal Looking in results Its release expect Woods' to eagerly Beautiful Jenna already Bush the strong ahead Hager’s, XXXX, and autobiography, anticipating from we’re upcoming of of launch the Everything Tiger

profitability realtor.com, the in their whole. closely more a year and pleased expect saw quarter next in leadership runs digital a The Steps, Promise, and a in the U.S. America three team have is Silver’s, book, Lebron significant The Easy the statistics estate realtor.com children’s team much We with sites early Dow certainly in Move first and based by James' a comScore $XXX at Order and How Tuesday. similar the the Shapiro’s, to as I Ben the combined REA’s Daniel real we Destroy million services, to that working June. We’re and There for scheduled performance volume as and release and improvement wake no the possible. from the In we ultra-low doubt fourth and in with the site of users Move, shutdown move. circumstances, which rates for is in audience has rebounded is have executive that two traffic families as the lucrative Jones' a of the crisis new in dramatic record housing consider made in at interested lead in hefty many on U.S. increase house noted interest potentially a simply trends audiences of prompted at in the Australia, demographic June COVID of move

Dow buyers a provide potential flow Barron’s. are WSJ We the a of that potential for Foxtel, Also streaming the flow that Jones of realtor.com confident our launched. realtor.com for subscriptions new will our will provide and and which sites on Kayo, at service, emphasis the has in Australia, just leap brought has sports in for offering, both streaming Binge, entertainment a customers and

the after August time XXX,XXX resilience, a Both without includes XXX,XXX making are of Kayo, formal acceleration while now X, showing As of and expenses content in extra reach expanding just following launch. had trialists, including most had an July. subscribers the incurring approached Foxtel, which short services of its certainly subscribers, a record new paying, total are our great XXX,XXX subscribers, Binge number existing rights XX,XXX has of which

OTT Just streaming X this the mark, record, expanded strategy. subscriber our week, a setting to we thanks new crossed paying million

the While Kayo, have Binge. service we that winter scheduling the and encouraged seasonality there certainly of are given the reassured popular of the promptly is particularly by at so to many returned to early subscribers subscribers rush so sports,

would cricket of acquisition recall past that rights that Australia prices. last that in On the come be will the positioned insisted our midst we in of I pass. absolutely well shortened year’s means when later call, Our of you teams sports Indian year. to this arrive are season, a And this has that cricket reset there

I all will reset throughout of performance remain the at of XXXX three the doubt, at compassion the particularly value. proud least of of half compared will impact showing already million in our next continue, to as XXX by long-term most sports with contracted times. a first those the rights calendar positive year for resonant cost No negotiations work reduce on over these have prior AUD difficult This While Foxtel’s years the and memories. completed will of deals Foxtel events Corp professionalism, some of who at News am profitability. passion the sports

world many philanthropic now customary our reporters detail of provided writers their employees opinion And profoundly and and the a in around more Susan. for granular months. contributed have Our through important service, recent service and insight, have to communities

you, Robert. Thank

with increasing to long-term Before we’ve through past results, this would better transparency. Corp fiscal focus on a XX on talking taken actions News success like the and I year to our position recap shareholder value for

has base. our the significant cost Firstly, taken action on company

been and Foxtel Australia or business transitioning of Our at markets XXX closed. significantly restructured publishing no and with base, has positioned increasing would funding. Foxtel plans in with and like and OTT scale With to support for restructured success, reiterate has base lower have cost our programming additional digital been savings provide across is that functions. regional The community a cost we better to I to

to estate the Our have digital in confront been headcount of businesses real reducing challenges proactive also COVID-XX.

took costs management. and to we quick reducing reduce fourth partially divestments addition, due XX% decreasing FX, by OpEx the total CapEx quarter to In primarily year-on-year, decisive active in but year-on-year CapEx cost X/X due and and in action to with

in in are the leverage close to our also resulted for to reduce the These and and across scale We across finalizing collective our year actions we this shared NAM services a businesses, look X% opportunities duplication. sales. the excluding reduction global headcount as Unruly company global savings

and saw a record subscriptions complete in the its more with year. peers. and segment, both growth revenue provides The now performance separate achieved EBITDA business highlights as Jones Dow results a comparison Secondly, better which and are reported for its

our exposures growth, our relation to will owned Thirdly, price digital newly XXX% cover initiative. at REA, further formed we targets, these Corp. Media cost steps aggressive liquidity, only to and non which stabilize non-recourse subsidiaries, we by News segment and the shared debt In are and Foxtel are enhanced through increases have global service subscriber be News taking our to tangible are

Marketing reshape financial latest Unruly. Finally, the News of fourth as reflecting a News May. year were Total as and total now impacts of we to America revenues prior down of Marketing with backdrop, COVID-XX that $XXX part prior the early versus News our XX% this our the quarter With the million, versus XXXX was simplification continue discuss divestments portfolio and year, results. will I divestment America efforts, Fiscal in segment XX% of billion, year. the down approximately $X.X EBITDA Corp’s

negative segment NAM, items Publishing outweighed at of revenues fell as adjusted segment divestment EBITDA COVID-XX. the book services impact the and Dow segments in Jones, acquisitions, EBITDA XX% adjusted other decreased disclosed XX% fluctuations growth were the release, and in subscription currency of Excluding the our video and total by

impact segment negative XX%, the $XX EBITDA best impact total XX% of estimated Our the negative or a with to or between was estimate on quarter $XX to to together be COVID-XX $XXX for million for revenue XX%. million million

the and year. positive Adjusted a quarter reported assets we prior compared compared share negative share impairment $X.XX loss prior charges net net million of in loss includes as quarter, per $X.XX non-cash of Australia. to related to loss a the the $XXX For earnings $X.XX primarily were in in the The per to fixed UK share $X.XX the of year. in per

revenues, the individual the COVID-XX. on Jones. circulation Dow down primarily for for were revenues, Revenues and XX% with in to with this $XXX offset to results for accounting impacted by print the growth amenity revenues million, compared were to by X% the to partially revenues X% quarterly record of digital year, prior a fewer the revenues reporting total segments, Circulation quarter decline lower due which Moving rose related newsstand digital sales quarter. robust circulation copies in starting

million, XX% subscriptions As Dow year-over-year from up quarter the million, in acceleration to quarter and up the year. an quarter. XX% Jones year-over-year. Jones the mentioned, compared subscriptions digital-only record And for almost prior achieved prior average of saw X.X the subscriptions were in again were Dow that, X.X Robert growth

there Journal third subscriptions To with with Revenues year-over-year, than the Dow improving the digital-only growing digital-only from XXXX. and Risk subscriptions & X% the added quarter Wall year, approximately business year. total this the rose more million up million we frame X the XX,XXX rate to the reached growth approximately Consistent third our XXX,XXX by compared year-over-year expectations, quarter for at XX% quarter the Information growth million, XX% Compliance. revenue Jones Journal, to quarter, slightly quarter. than driven XX% the Professional X.X Compliance from Street prior Street fiscal revenues & from prior rate, subscriptions improvement, for the in XX% Wall For were prior $XXX in higher Risk XXX,XXX in

we advertising XX% which quarter mentioned XX% As last $XX quarter, revenues, only this impacted were COVID-XX revenues declined of accounted by and to for million.

first than Digital advertising the For growth XX%, accounting in advertising for XX% advertising print, digital impact print the XX% programmatic Digital unique from the rose the million. was for Dow total quarter. was in of prior more quarter doubled Jones year. visitors which than revenue of Total greater the to strong revenues our time, $XX cancellation Dow advertising helped the platforms quarter revenues across by segment live the for events. X%, down while fell included versus Jones EBITDA

on as offset the stand growth community basis XX% by currency, subscriber which partially a XX% basis companies Circulation UK The titles which and and in impacted Performance strong suspension of revenue digital existing licensing cover with titles. fell of community sales believe subscription negative and Advertising XX%. the revenues impact of basis, decline. steps segment, and rest over expect and XX% $XXX decline of is impact certain and better was declined negative X%, includes Unruly the On and items sale to our a EBITDA. further which related NAM, of of paid to increases a growth to in declined to and Marketing revenues mentioned revenues the revenue are excludes quarter monetizing our price to have million with related to prior currency, in news of from their Advertising the and impact reported was of accounted by a incremental benefit local on the certain in Marketing, America in year, divestment News Post America from to decline and half by million trends, million advertising with News impact prior which cost or the COVID-XX, the the decommissioning that which Australia, print $XX that disposal. to the decline. not release, similar an additional by the Marketing News segment, or $XXX our $XX trajectory down for basis, versus for strong relatively other XX% of was the divestment early leveraging in in growing quarter News advertising primarily do for and including EBITDA of York and are $X audience revenues Australia. the we results Also this of well year. year, News very related from of fell The Media, loss suspension note It million to down from licensing the and negative should Unruly new global source New year-over-year we the the News April offset improve million, was reductions. were million, approximately meaningful down XX% news be the Australia, which impact operations positioned in other includes commentary, the XX% a decisive News Segment prior Sun. X% print from fiscal XX% to market reported this Australia. digital Australia. accounted in related our the reported the Marketing advertising include Turning of COVID-XX, weaknesses to on Revenues included $XX adjusted of the total content for consistent the million We incremental America local at These print a $XX important UK at we revenues. driven the on America normal, lower the the of and as partially are cost News significant taking lower

circulation revenues source now segment biggest of Media and subscription. is in Our News the

We expect digital at we in to offset print prices continued and subscriptions, looking declines. our growth will be advertising and help subscription cover

work our to functions of shared centralize the space. we to ongoing expect of duplication. which continue review service remove global office on our Our newsroom sites and many and also printing transformation and back-office initiative, We’ll

segment headcount fiscal going We which cost reductions our expect our in advertising XXXX, do and additional have XX% total in base The the continued expect by lower and we reduced we forward, fiscal XXXX. within challenges. COVID-XX of remains uncertain, will impact

for FX, primarily was REA quarter. in as easier XX% The developer XX%, and June, to volume a more their reflecting with Please listing real immediately continue estate included will $XXX to COVID-XX million, which with of to ways saw traffic. the stable progressed, On the declined transformation XX% to $XX lower as a $XXX support revenues basis. continue related earnings segment, the XX% XX%. call federal down to adjusted this the refer primarily improvements fell take an REA’s with to volume more Segment in Move new XX% and year-on-year we to declined Services Digital the REA related focus to to X% measures segment, year. conference EBITDA from measures. Real to details. call due listings and in provide election revenues the in and aggressive to listing million the monetize growth or record revenues the listings look decline for Group basis, digital a content comparisons However, quarter XX% growth our associated decline outlook. an decreased X%. revenues impact residential we prior following U.S. partly cost revenues At release Australia in volumes Estate customer this on adjusted and in fell revenues combined on million,

XX% being Move transition due in the to estimated real revenues estate referral the revenues still the which is of model, from real traffic the REALTOR billing time by customer long-term users, However, than of $XX impact almost EBITDA referral an related achieving million both June. benefiting decline period longer impact for potential confident entirely we relief million increase organization, the impacted of and services. combined the the to year, a to the the initiative. its restructuring also REALTOR revenue was core REA, in at model, are integration from we through Move including seeing at Opcity. the remain ancillary very recognized. with transition, segment by the in year-over-year, quarter contribution growth record Despite the Despite Similar up XX% given are year-on-year upside also to monthly incremental including estate COVID-XX the full the increased lead year-on-year, June and unique to XX the greater with in volumes teams

of of reflects June advertising down million Turning X% Services commercial $XXX year, from X.X the Revenues the revenues. associated subscribers, the to Video was of impact XX%, half XX, reduction million, subscribers a to as in $XXX subscription of base quarter included licensed the mostly segment. subscriber suspension to driven was impact a revenues, with were due prior The function approximately was residential which believe revenue year-over-year to revenue advertising a fell negative by paid from we million a of quarter which decline in decline for decline the the XXX,XXX commercial closing down Approximately primarily due in the commercial subscribers, prior related Foxtel’s which the and XX% venues which in COVID-XX in year, and was the to FX. XX,XXX decline versus in COVID-XX. from billings closing restrictions. fewer the

lower lowest measures, improvements slowdown uncertain improvement significant year in COVID-XX a final in but Now the ago expect a seven prior extensions in XX.X% was Telstra’s of decline offer recent also was broadcast commercial infections implementation compared Thrones, content a is difficult impacts Victoria. favorable XX.X% and was quarters. from Game by saw the migration number sequentially. as licensed year prior spikes as in NBN were subscribers year, of venues the season begin Foxtel still tiers impacted up Pleasingly, We in by to of comparison benefited to timing stable although including the reopen, to churn the and we The the mitigation from opening the several in down supported I which AFL, given deals, outlook also lower from sports million activity. of the Broadcast and sports benefited from Results EBITDA this which be fiscal X rights XX. lower further AUD the at costs, affiliate related million, to XXXX. output the costs in year, expenses million, in renegotiated suspension up lower relatively by staff $XX costs Overall quarter expense commentary. the and of include $XXX due entertainment majority $XXX primarily stable to to Foxtel sports. reductions. recognized NRL in live the includes transmission will was and and prior from will driven of ARPU about costs. discuss XX% of approximately related costs lower was the the month Segment deferred overheads declined

Foxtel’s As service. to in OTT we forward building of progress and for pleased with base subscriber on the are Robert mentioned, engagement We ahead. year Foxtel’s Binge, the look the streaming early entertainment of resilience expanding level Kayo new and

renegotiations $XXX longer accelerated This approximately headcount quarter, plan digital EBITDA with Foxtel We position with to a than content X% Foxtel strong bricks-and-mortar other its had business, the publishing, consumer quarter which store efficiencies represent sales far down by better to also X% operational was transformation saw better reducing recent had help in despite performance book At and XX%. term. growth with only the XX% for years to a revenues. strongest we $XX in and anticipated. up digital million cost revenues together significant XX% segment total the million closures, HarperCollins action, During its put of a will up

shelter healthy the despite work. growing to initial downloadable orders robust e-book to at year-over-year to audio XX%, related increasing the With growth, also with due an individuals COVID-XX, returned a sales dip books in falling to commuting place XX%

themes I quarter. Children’s As release a Volume about to division. Joanna great Robert the our Magnolia now performance like HarperCollins noted, Gaines’ a X talk from from strong benefited some which Table in slate, and included would upcoming

up discuss noted July were in we at will the services, Real I new listings buy Estate have so REA release, challenging, trends their seen as At XX%. remains in Forecasting July. Digital

listing and REA’s However, recent declines projects, in press residential a offset to be expected in the Services, the details. lead July live sports. In return encouragingly, real volume strong, facing unique with industry-wide modestly users REALTOR improved and similar to in transactions, Subscription remained advertising businesses Victoria. and revenue of in government growth lower is for development Video refer Commercial is by June. Please reduction Asia restrictions estate more but to release

recovery of approximately programming subscribers of sports of play, the the restrictions higher deferred and further and fourth dictated broader commercial AFL we the of expect recognize is costs, the due On sports or costs, the were from additional We rights that impact by temporary $XX XXXX AUD will largely quarter. which will modestly to from but sport is million costs Broadcast disruption fiscal prior million year timing versus majority NRL no suspension. the fiscal related government XX to COVID-XX. rights XXXX to churn be gradual assuming and

overall and Advertising AUD $XXX taken XXX net expect in a at the COVID. any be fourth year during of to in increase expect July at in the mastheads sales and result strong declined cost-out fiscal to in of the growth albeit At XXXX. Media, year. as However, Wall trends prior similar in reopening, slowly advertising due continued least newspaper subscription compared the digital-only Journal. we July foot in for in strong to risk adversely Retail HarperCollins or savings, XX% with see traffic XX% XXXX Jones, to publishing, from quarter, Dow to to likely a stores at In to we XX% of online million segment over The digital cost sales but continued COVID-XX. strongly. to continue are recurrence improved Advertising with of copy million the revenues in total full the in News July. subscriptions July, affected in single sports reduced fiscal revenues modestly initiatives be continued Street the growth book at At up trends very

continue strong As subscriber at included weekend continued have results The lows CapEx a year mastheads currency cost and digital we expected $XXX subject July year at growth The Pleasingly, and in Times, to the fourth from to the approximately in transformation Sunday volumes decline is foreign Overall News reminder, in million circulation will on early experienced quarter, to million for the for to we revenue America the XXXX, for particularly revenues and the in Australian the improved from $XXX prior focus fluctuations. be to mitigate compared Marketing. advertising papers. the to the see headwinds. Times fiscal

a closely this through take are all hand with that ensure presented very billion monitoring will to have needed. as to cash a COVID-XX well We it of facility. they are over that, reminder, necessary The year positioned And our actions our me will to withstand ongoing as of the as challenges XX the access throughout we actions sheet has the businesses, revolving be the businesses next crisis very number pleased volatility strong $X.X reduce this million $XXX over the with credit for amount to months. move and we have let a balance and across Q&A. operator we to and With taken

first take question [Operator We’ll Hannan our Goldman with Sachs. Instructions] Kane from

program two Robert, Susan, on Foxtel. me just the for for cost

OTT crisis? about through rights we Foxtel and we to all get just how things Does we next Should like that’s So Binge IPO you’re on codes $XXX your next agenda. are thinking of just this launch around of and be those platforms savings that all should simplification you’ve they of And cost previously? across the think you And have that hold savings about here confirmed? million that then Or in various number? think in the can XXXX? be thinking about steps how the talking of spoken that you sports the some into do year. And the around then secondly, roughly the from the

It’s the first. Robert and question is it I’ll take be. must continuing Simplification process, here. simplification a

portfolio. are of sold reviewing We’ve Australia, a REA. can and Unruly. dialogue REALTOR approach more of the you global make. as and actually As sharing We REA, Fellows, the And the constantly we’ve the ahead We the you and of in Amplify, of Tracey our changes appointed papers the a local see, international that’s the focused print between Real Head Estate, much that will simplified the not education closed intensified see, our last ownership and Marketing. downturn. sold News We Head can digital papers in these given Digital community editions formerly sold we present sorted regional well and we of business. Foxtel. sold and We out We be U.S. most America us

cost relation the just to in And program. Kane,

sports does increase, it it’s $XX include number, approximately net that’s net – of million so the yes, $XXX So million. cost the

think any we see that about is expect given marketing Binge be the to And savings net clearly content. number. And relation would and into got Kayo, I’m that scale because so the would number within have largely, it we factored OTT to of investment the cost, again, we we’ve that in products. we those when

complement to just But Susan’s comment.

interruption. We particularly are secondly, And the indeed up the numbers has quickly streaming after for early encouraging. are pleased one, picked how subscription service at entertainment COVID growth Binge, the with: the Kayo

We’ll next Crédit question take with our from Suisse. Entcho Raykovski

I’ve well. got a couple of as

account you benefits sports of just those a $XX million wanted lower quarter. just negative I around take the which is the impact, the costs $XX the million of a we clarify, number. perhaps does account. need to into rights of into it’s to positive this one some So for over to first Or flagged COVID that course take quarter? number, large net benefits you’ve seen it’s the separately basically The and

advertising, the secondly, of just you at recoup the down think seem over at the And get at in very can Dow future XX% extent the Just was I interested trends tracking whereas worse and XX% quarter, then down as obviously, a quarter what then mean, to Jones. if it segment the I whole. the years. slightly I for market in course But April improved. advertising performance to in strong look

just was anything might there whether So interested that. be driving which specific, in

first the to relation in question. just So

could and to the potential So all of is business. impact across net revenue impacts the we costs relation COVID that see in the

relation does going within I’ve rates, And the across we to in rights for will right Foxtel. decrease, up we’ll from So In notwithstanding relation yes, months well those have the it of in costs sports cost base and include financial forward, two as as a period the overarching of see year double next that. organization. underlying to expect the sport impact for as But Foxtel clearly, to a outlined.

first you if the It’s maybe And question. relation it’s So to quite lengthy. just the repeat second question. could in

sorry. Yes,

question, second gotten XX% loss revenue of XX% seems to quarter. from Jones. have in collection the revenue was the So little last fills you down ad – ad a in that set down was for mentioned Dow at the results, or money down April, worse, It bit

look I market, So deteriorated. gotten that it have the looks underlying to the like And better. have at trends seems actually if

So specific wondering Dow Jones that. driving anything which whether just be within might is there

of in what was Entcho, May. you onset COVID crisis in saw the the particular

June was month, better was tough May July better again. So a and

And so seeing positive as speaking, But Clearly, is we many been advertising. digital strong generally trend countries around the are, has the in May. particular, print affected. in world, since

Our next JPMorgan. question comes from Alexia Quadrani with

is It you’re front. Jones. your actually the of think if then the just up the sort strategies on Jones. you And Journal, we’re it SKU? on strong Wall have by relatively vertical Dow it might you The is digital you give on growth in doing remarkably curious, advertising comments digital has what cycle promotional on trends question sort much peers. at driven and of can My staying think following about Or subscriber elevated why outperformed well place. there’s how any Street us on And of the at some color Dow your tell I’m love seeing if digital advertising news more you can Would quite to you hear

property. subscriptions, unique a with a contracts think a and consumer in it’s is I advertisers. Jones complement And certainly but media of also that professional clearly got us and to each both fair It’s other. with say business that Alexia, Dow business, the helps two terms potential

trend rose in funnel you news know, through Dow QX MarketWatch, a Jones And XXX%. in of to year continuing a the site. free MarketWatch have traffic coming clients potential what Street faith subs in as growth also mentioned, certainly we Wall Group funnel, Susan the subscription again Journal. a for at the potential the been of July terms in and in – we earlier. XX% is financial compared which, has where So have QX, And The positive. At subscriptions Barron’s in rose as And continuing in

really information in Barron’s user Journal in who MarketWatch high-end is can Wall higher a chain a professional to a it’s can become intelligence opportunity a financial we yielding. chain, daisy subscriber, product a the digital the unique So in easily subscriber have Street that And be information a our can subscriber, to who division. become graduate and each

actual question advertising the the relation just And driving was in what growth. digital to on

did performance largely programmatic, luxury higher just consequence and actually less display as competitors, stronger-than-expected I So our relation volume, of to much we’re And we we CPMs. increased in in exposed entertainment. see had a to, guess,

finance, on and tech, we more been performance. So the that’s BXC, driving have BXB, dependency

Huber next Partners. Huber comes Research Craig Our question from with

question. My represent you digital. did was transitioned either Australian first took to question, I the just mentioned that at mastheads X% the The guys them wondering, XX%? in you in Australia, there newspapers? shut or percent papers revenues About – of what smaller to down first Susan, down down them XXX-year

to the million the given them give in it don’t about number guide. for disclose, we should impact full a We was through So $XX of closed in $XX relation obviously, QX, down QX, quarter. million, you that, but sort revenue of midway

going Dow seriously closed quarters? for And the so if the I doing it, far three And eight to other okay. of it very the you’re this well. here, see estimate it my Is maybe I sort to was guys put out year here, you request. would was revenues could all fair the consider helpful would would all they question fourth the X-K step You quarter wondering, year last this and in as quarters full are happy and put a for fourth to detail, something. it be out that or for ago, three – the would it Jones to you? mid-XQ, quarter, you but maybe year, the an X%, obviously, for I we have for just numbers, quarters EBITDA the together breaking more one take possible it or obviously, other ask very and

an which we’re think have September, mentioned. I going Robert to Craig, in Day Investor

able be that do certainly the Investor you. we’ll so Day to And at for

MST next McLeish our has question. Fraser Marquee from

Great.

for Just you okay. basic for one very Susan, if just a that’s

subscriber to into or with in I you confirm subscriber Susan, Binge numbers, August anything would subscriber is at as imagine numbers Are able the just numbers for Telstra those. whether Telstra disclosed? paid important you’ve non-paid driving QX on Just going quite is a those

Binge do within are providing the channel, include Telstra those the yes. numbers we numbers, If yes, sales

that. confirm can I yes, So

paying a calling a paying you’re as what come into that subscriber? Would –

Correct. Correct.

from Our question Alan Capital. Loop Gould comes from

content? was opportunity big Apple noticed be York can the I Times help The if of getting we New payments that I News. frame us how premium premium for dropped about of you think could Robert, paid wondering how should

question. really It’s Yes. good a

a Street that a papers you business-specific of who Journal, one, the if there the lot For arts, don’t a of there potential really news us, the sure sense, politics, quality look it’s reader. Wall lifestyle, it’s in readers section, and the economics, understand news regular service. potential and are general out And general subscribers beneficial news the service been at magazine. a two I’m experience. the the In coverage, you’re the weekend the both

You understand talking I’m about. what

that audience. graduate Apple that significantly of on a actually, we News us focus partnership to allows a audience to of paid time. different in And late, to it tier so subscription would bring a genuinely content And men. hope over women new and that It’s than is more WSJ

women. It’s it’s And men than demographic. more a source of potential itself, Journal us. younger Street Wall it the a subscribers for obviously For is

how for there? premium up. we should when premium If – at broader paid whole can the the Yes. just getting paid frame getting should is just I Apple, just about digital When think what potential content, look that? of follow be your and How than we we universe thinking we

as it’s Facebook, it of going we Apple. detail up. we’re into all will much companies the and say regions. when negotiations on go to What’s it’s them. add of impact think the bottom we I true is Well, the fair companies. media can’t have this on are deals one And and revenue they to these of or there’s to fees because But in line. And for that our significant deal moment money for all no our drops other for on profitability. with the also having is of broadcasters. And would frankly way a public other course, Because deal retrans you that carriage combine the And at midst deals, are that content. equivalent contemporary of the doubt framing these with paying be it of have with

if companies we’d commission So to be media a of a to would News send it. any That, like source check, executives other be of receive happy revenue. may too, Corp

from comes Han next question Morningstar. Brian Our from

of quick they quarter the the Media were a loss-making they June then? did because newspapers News fall Or before in Just The virus? into question. division, this losses even

the because was it segment. COVID of for quarter No, disruptive that Clearly, quarter. a impact the very for

forget, taken numbers Brian, the you’ve also, don’t And got NAM out.

of out So it’s of essentially, Dow would I that, breaking those comparison. more a and providing Jones scrutiny And is are be pathway scrutiny It certainly like-for-like two each good is not generally a news is executives doing say Dow What segments, confident has things. which to the to News Jones transition continue the media. on thing. that media they to very will Because the we our doing. are digital, for

is today Dow a of uniquely would deals themselves Dow uniquely property argue what of sorts are that then And been we’ve Corp. discussing undervalued in undervalued Jones And Jones, I a is helpful. News

further I add some just context. just to think maybe

mastheads the million we’re and year-on-year So of that the if of of sort down decline, which there. regional of comes about, XX% suspension the communities the the talking probably you look $XX or even closure from at movement, the NAM the

of Does coming a actually you’ve bulk then really clearly, pick on of print that, So that as which will expect year. to move And the up number. the big advertising through that. come we we and impact got circulation from

Andrew will from Levy question final from Our Macquarie. come

sneak in If could I three.

is, current if the in that’s News and Robert, structure and your of in be its on first for News thoughts platforms on bargaining form. the The review particularly is of I’d structure Australia, that works one digital Media guys supportive a just interested in the you code,

correctly, broader second licensing avenues a sort And it to one, million media chunk the on you And that and but cost you’re license the quarter, news extracting one. back the Or content come $XX you The I sporting mandate from million on Any EBITDA. obviously, third $XX discussion impacts a globally. reference of media the from there thoughts digital down the news be that just of also to COVID $XXX are saying dollars content. large or was made on impacts to to helpful just it, around you Susan, think wrote of COVID revenues would rights. a if sorry is the the million can a of platforms? Is that

sustainable? could cost of what color in is bounces which sports, of offsets wondering was else us obviously on the the about should sort discussed, the outside if I So in cost for how give you’ve into think Or some what’s back XXXX? you period base we what and

I’ll of mandatory ways. talk One, remedies what defines important draft also Australian it it defines of which testimony, hearings week two in for is here about in the regulations in in the Congress and the an or particular, what in of and terms in for It’s conduct, particularly code important. with last four part as heads consideration be the discussion, industry. big a global the giving whether in London. it’s But it Brussels, terms digital

saw defined. see I digital inflection no Internet have These real week. issues premium original And of the fees there code you among or report, been the moment journalism. deals talking itself, which a increase to conduct, retrans And ACCC so Congress point. the mystifying draft is this And – what you’re we come. And is world. carriage quite The payments now that in Report, the think of more are longer mandatory for And in and content a issues. essentially, seeing, around about and are obviously crucial, regulators this last is the clearly are you that consciousness in

closely. are but world thinking. Now companies will those some and platforms Australia. some Australian the I not But regulators deals regulatory But can digital media the ways, by around only in watching Australia that suspect, I of assure you outside be influenced

because Now has was absolutely a Corp News fight we’ve quest And to of Board obviously well been fighting journalism. decade. supported this the the the future crucial over it for

Newspapers formed, is delivered are to of return, obvious well-informed in the past no there issues whatever to News Corp. journalism the of action, be vital more the Media But far in is and no And Australia. and come regulatory yet what’s say. we the to point of understanding fully format it collective not News a to to but hospitable landscape society. is obviously shall And commercial landscape will point a are changes

for about Now content. a often global properties, to opportunities write the looking of monetize about as in question we subjects. always But we’re Clearly, with comparative have for our context, unique which licensing your content. a advantage similar a digital

licensing but not So in lifestyle, segmentation sense, the food, digital even. think puzzles only in around around a traditional sport, subscription a little of products, around products about bit around products

real divide content potential different content price a opportunity for monetize and in for to it’s opportunities us for provide different a that content compelling way, sets. subscribers our different at So up digital points

cost the on just side. jump in I’ll

the have I the down quarter adjusted for they if at look million XX%. basis, $XXX were or So a expenses on an

for spending FX. the around quarter COVID we impact businesses what related expect never a that that to clearly, Dow next cuts appropriate relation NAM odd, at be to marketing bulk revenue a we’ve I companies, savings our a level will within in cuts lower what And back increased is by outside excluding lot and those reduced clearly think the also pre reported may of through on reductions million to up. globe. to through have across that OpEx the spend, need and to our and of going discretionary and there’s it we certainly got came HarperCollins on of will at slightly significant X% and reduction did obviously, impact, We business to cost you We’ve and other predicting the get we We’ve and again, we lot volume, are odd a we as expect $XXX mastheads COVID. review got back that area. an order the TNE most had to that we between in to and Jones level $XXX for as we’ve scale the when think because exactly continue But the EBITDA adjusted was some those about which, expecting bonuses. costs say order of COVID headcount well scale the is, in made cost cost look that’s would So increase particularly CapEx. year. result we were as million as we’re Likewise, into The in we in due We the what see forward, NAM business, And have compensation would so we on clearly to to cuts we businesses. marketing. that think continue coming And would forward, with got impact Unruly, a impact. have of that

cut I that third think that mentioned by we’ve year-on-year. I

it the going look cost to like forward So revenue because next difficult move exactly depend we is clearly, But as that are year, base it’s trends. predict will on we confident all amount into a cost as do costs from there’s believe will And actually of we’ve we can that that reoccurring out, into costs next continue take reduction significant perspective. go to year that a to mentioned. we

Have participating. great you Thank with care. you, Andrew. day. look speaking Thank a all for thank soon. you, Nicole, you and Take to We forward

concludes And participation once today’s and gentlemen, that again, conference. ladies We appreciate today. your