Summary of News Corp Conference Call Company Overview - **Company**: News Corp (NasdaqGS:NWS) - **Event**: Morgan Stanley TMT Conference - **Date**: March 02, 2026 Key Points Portfolio and Business Performance - News Corp has undergone significant changes since the split from Fox, focusing on refining its portfolio and enhancing digital growth, particularly in Dow Jones, digital real estate, and HarperCollins publishing [8][11] - The company has achieved 11 consecutive quarters of year-on-year EBITDA growth, with a record fiscal year profit of $1.4 billion, reflecting a 14% increase [8][11] - The outlook for the second half of the fiscal year is positive, with expectations for continued growth [9][11] AI Opportunities and Risks - The company views AI as presenting more opportunities than risks, positioning itself as an input provider rather than an output company [15][16] - News Corp has established significant partnerships with major AI companies like OpenAI and Bloomberg, focusing on acquiring content to enhance their operations [16][17] - The company emphasizes the importance of reliable data and news as critical inputs for AI applications, which are increasingly recognized as valuable [15][17][25] Digital Real Estate and REA Group - REA Group is highlighted as a strong asset, with a focus on creating a holistic real estate experience [44][45] - The average unique user engagement on Realtor.com is higher than competitors, indicating a strong position in the market [46] - The company is optimistic about the potential for growth in the real estate market as interest rates decline, which could lead to increased turnover and revenue [52][53] Dow Jones and Wall Street Journal - Dow Jones has seen a 20% year-on-year increase in risk and compliance revenue, bolstered by recent acquisitions [57] - Digital advertising revenue at Dow Jones reached a record high, up 12% year-on-year [58] - The Wall Street Journal's average revenue per user (ARPU) has slightly decreased due to more enterprise deals, but the long-term strategy focuses on dynamic pricing and individualizing the subscriber experience [61][62] Capital Allocation and Buyback Strategy - News Corp has increased its share buyback program by an additional $1 billion, indicating confidence in the company's undervalued stock [84][86] - The company is cautious about acquisitions, ensuring they do not overpay for assets while seeking intelligent adjacencies in various sectors [85][86] Miscellaneous - The California Post app has seen double the expected downloads, indicating strong interest and engagement [87] Conclusion News Corp is strategically refining its portfolio with a strong focus on digital growth and AI opportunities. The company is well-positioned in the digital real estate market and is optimistic about its future performance, particularly in its Dow Jones and publishing segments. The increased buyback program reflects confidence in the company's valuation and commitment to shareholder returns.