Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the structure of the Foxtel deal and the decision to take DAZN equity as payment? Are you still engaged in an overall strategic review of News Corp? A: The Foxtel deal is subject to regulatory approvals, and we expect it to close this fiscal year. We will be close partners with DAZN, and the deal reflects our ongoing review of our portfolio to maximize shareholder returns. Our shares have risen over 26% in the past six months, indicating positive market reception.
Q: What is driving the expected earnings growth acceleration for Dow Jones in the second half, despite increased OpEx? A: The growth is driven by positive trends in Dow Jones' circulation, with digital subscriptions up 13% and a focus on average revenue per subscriber. Risk and Compliance and Dow Jones Energy are also performing well. Additionally, the second half typically sees more additions due to seasonality.
Q: What are your expectations for the proceeds from the Foxtel sale? Will there be capital management or reinvestment? A: We are focused on generating maximum value for shareholders, with a $1 billion buyback provision in place. Last fiscal year, we returned 70% of our available free cash flow through buybacks. The sale will provide us with optionality for future investments and shareholder returns.
Q: Can you provide more color on the timing of price increases for Dow Jones and the expected contributions from new products at REA? A: Digital revenues at Dow Jones are increasing, with 81% of revenues now from digital sources. The expansion of the Professional Information Business (PIB) is improving margins. For REA, new growth areas like seller-related revenues and rentals are showing significant growth, indicating strong future contributions.
Q: Is there potential for further structural optimization at News Corp, similar to the Foxtel deal? A: We are constantly reviewing the company's structure, and the Foxtel deal is evidence of our commitment to optimizing our portfolio. We have valuable assets, including realtor.com, which is showing strong growth in new revenue areas. We remain open to further strategic adjustments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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