Core Insights - News Corp. reported a revenue of $2.14 billion for the quarter ended September 2025, reflecting a decline of 16.8% year-over-year, while EPS increased to $0.22 from $0.21 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.11 billion by 1.53%, and the EPS surpassed the consensus estimate of $0.18 by 22.22% [1] Revenue Performance - Dow Jones revenue was $586 million, slightly below the average estimate of $586.05 million, showing a year-over-year increase of 6.2% [4] - Book Publishing revenue reached $534 million, exceeding the average estimate of $530.29 million, but down 2.2% year-over-year [4] - Digital Real Estate Services generated $479 million, surpassing the average estimate of $473.39 million, with a year-over-year growth of 4.8% [4] - News Media revenue was $545 million, above the average estimate of $522.49 million, marking a 4.6% increase compared to the previous year [4] EBITDA Analysis - Dow Jones EBITDA was reported at $144 million, closely matching the average estimate of $144.07 million [4] - News Media EBITDA significantly improved to $30 million, compared to the average estimate of $16.34 million [4] - Other EBITDA was reported at -$50 million, better than the average estimate of -$58 million [4] - Book Publishing EBITDA was $58 million, below the average estimate of $69.29 million [4] - Digital Real Estate Services EBITDA was $158 million, slightly below the average estimate of $158.62 million [4] Stock Performance - Over the past month, News Corp. shares have declined by 5.1%, contrasting with a 1.3% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - News Corp reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 2.3% year-on-year to $2.14 billion and a GAAP profit of $0.20 per share, which was 9.4% above analysts' consensus estimates [1][6]. Company Overview - News Corp, established in 2013 after a restructuring, is a multinational conglomerate involved in news publishing, broadcasting, digital media, and book publishing [3]. Revenue Growth - Despite a modest year-on-year revenue growth of 2.3%, News Corp's long-term performance has been inconsistent, with total sales of $8.5 billion for the trailing 12 months being close to its revenue five years ago, indicating lower quality business performance [4][6]. - Over the last two years, News Corp's revenue has declined by 5.1% annually, reflecting suppressed demand within the consumer discretionary sector [5]. Quarterly Performance - The company reported revenue of $2.14 billion, surpassing analyst estimates of $2.10 billion, and an EPS of $0.20 compared to the expected $0.18 [6]. - Adjusted EBITDA was $347 million, exceeding estimates of $331.6 million, with a margin of 16.2% [6]. - Operating margin improved significantly to 56.1%, up from 10.2% in the same quarter last year, and free cash flow turned positive at $4 million, compared to a negative $31 million in the same quarter last year [6]. Segment Performance - News Corp's revenue breakdown shows that its three key segments—Dow Jones, News Media, and Book Publishing—contributed 27.3%, 24.9%, and 25.4% of total revenue, respectively [7]. - Dow Jones and Book Publishing segments averaged year-on-year growth of 4.3% and 3.3%, while News Media experienced an average decline of 2.6% [7]. Future Outlook - Analysts project a revenue growth of 2.8% over the next 12 months, indicating expectations for improved performance from newer products and services, although this remains below the average for the sector [8].

Core Viewpoint - Wall Street analysts anticipate a decline in News Corp.'s quarterly earnings and revenues, indicating potential challenges for the company in the upcoming report [1]. Financial Performance Expectations - Analysts expect News Corp. to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 14.3% [1]. - Revenue projections stand at $2.11 billion, down 18.1% from the same quarter last year [1]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of initial projections by analysts [1]. Revenue by Product Estimates - 'Revenues by Product (GAAP) - Dow Jones' is expected to reach $586.05 million, a 6.2% increase from the prior year [4]. - 'Revenues by Product (GAAP) - Book Publishing' is projected at $530.29 million, showing a decline of 2.9% from the previous year [4]. - 'Revenues by Product (GAAP) - Digital Real Estate Services' is estimated at $473.39 million, reflecting a 3.6% increase year-over-year [5]. - 'Revenues by Product (GAAP) - News Media' is expected to be $522.49 million, indicating a slight increase of 0.3% from the year-ago quarter [5]. EBITDA Estimates - 'EBITDA - Dow Jones' is projected to be $144.07 million, up from $131.00 million in the same quarter last year [6]. - 'EBITDA - News Media' is expected to reach $16.34 million, slightly up from $16.00 million year-over-year [6]. - 'EBITDA - Book Publishing' is estimated at $69.29 million, down from $81.00 million in the previous year [7]. - 'EBITDA - Digital Real Estate Services' is projected at $158.62 million, an increase from $140.00 million in the same quarter last year [7]. Stock Performance - News Corp. shares have decreased by 5.8% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [7]. - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [7].

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the precious metals market, particularly focusing on gold and silver, amidst significant market volatility triggered by comments from President Trump. Core Insights and Arguments - **Gold Price Movement**: Spot gold experienced a 6.3% drop, marking the largest single-day decline since April 2013, with current support around $4,100 [3][22] - **Silver Price Movement**: Spot silver saw an 8.7% crash, the biggest drop since 2021, testing down to a $47 handle intraday [4][6] - **Gold-to-Silver Ratio**: The gold-to-silver ratio at 80:1 provided support for the pair, indicating a strategic timing for silver's underperformance relative to gold [7] - **Ownership Transfer**: UBS trading desk noted a transfer of ownership, with stronger hands reducing exposure while new entrants, particularly hedge funds and family offices, increased positions using leveraged structures [9][10] - **Physical Demand**: There was a notable absence of physical demand from India, which is significant given its role as a key buyer in the market [10] - **Funding Pressures**: Funding pressures in both silver and gold are easing as vaults in Shanghai and New York are emptied to alleviate physical tightness in London [11] - **Market Sentiment**: The sentiment remains constructive on gold, but the lack of sticky demand makes it vulnerable in the near term [16] - **ETF Trading Volume**: An unprecedented volume of trading was observed in the SPDR Gold ETF (GLD) [20] - **Bitcoin vs Gold**: The decline in gold prices coincided with a rise in Bitcoin prices, indicating a shift in investor preference [22] - **Mining Stocks Impact**: The GDX (Gold Miners ETF) had one of its worst days since the Global Financial Crisis, highlighting the negative correlation between gold prices and mining stocks [23] Additional Important Insights - **Market Volatility**: The market is experiencing a shift back to positive gamma, which may help reduce intraday volatility and improve liquidity [40] - **Labor to Purchase Gold**: It now takes 116 hours of work in the US to buy one ounce of gold, the highest level in at least 100 years, indicating a significant increase in gold's relative cost [53][57] - **Income Growth vs Gold Prices**: The ratio of hours worked to purchase gold has doubled in 18 months, suggesting that gold prices have outpaced income growth significantly [57] This summary encapsulates the critical developments in the precious metals market as discussed in the conference call, highlighting the volatility, market dynamics, and broader economic implications.

Core Insights - Ray Dalio, founder of Bridgewater Associates, warns of a bleak economic future for major Western economies, particularly the U.S. and the U.K. [1][3] - He emphasizes the importance of diversification in investment strategies to navigate economic uncertainty [2][5]. Economic Concerns - Dalio cites unsustainable debt levels, political divisions, and geopolitical conflicts as significant risks facing Western economies [2][4]. - He describes the U.S. as engaging in a "risky game" due to its increasing financial liabilities, identifying the "debt money economy problem" as a critical issue [4][6]. Investment Strategy - Dalio advocates for financial and geographical flexibility as essential strategies for managing risk [4][5]. - He uses the Chinese proverb "A smart rabbit has three holes" to illustrate the need for diversification beyond traditional investment portfolios [5][6]. - Maintaining liquidity and mobility is crucial to reducing risk without sacrificing returns, a principle that has been fundamental to Dalio's success [5][6]. Market Performance - The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ) saw increases, with SPY up 0.47% at $666.84 and QQQ up 0.59% at $602.20 [7].

Core Viewpoint - The stock market is experiencing a strong bull run, with major indices such as the S&P 500, Dow Jones, and Nasdaq 100 reaching all-time highs [1] Group 1 - The S&P 500 index is a key indicator of market performance, and its ETFs like VOO are gaining popularity among investors [1] - The current market conditions suggest a favorable environment for equity investments, particularly in index funds [1] - The performance of the top indices reflects investor confidence and economic recovery trends [1]

Group 1 - News Corp. reported revenue of $2.11 billion for the quarter ended June 2025, a decrease of 18.2% year-over-year, with EPS at $0.19 compared to $0.17 in the same quarter last year [1] - The reported revenue slightly exceeded the Zacks Consensus Estimate of $2.1 billion, resulting in a surprise of +0.26%, while the EPS met the consensus estimate [1] - Over the past month, News Corp. shares returned +0.5%, underperforming the Zacks S&P 500 composite's +1% change, and the stock currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Revenue breakdown by product includes: Dow Jones at $604 million (+6.7% YoY), Book Publishing at $494 million (-3.5% YoY), Digital Real Estate Services at $466 million (+4% YoY), and News Media at $545 million (0% change YoY) [4] - EBITDA figures show Dow Jones at $151 million, News Media at $28 million, Other at -$59 million, Book Publishing at $50 million, and Digital Real Estate Services at $152 million, with most figures exceeding analyst estimates [4]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1,700,000,000, up 10% from the second quarter in 2024 [12] - Adjusted operating income reached a record $1,200,000,000, up 14% year over year [12] - Adjusted net income was $1,100,000,000, with adjusted diluted earnings per share at $2.96, both up 16% from the previous year [13] - Average daily volume exceeded 30,200,000 contracts, representing a 16% increase compared to the same period last year [7][8] - Adjusted operating margin improved to 71%, up from 69.1% in the same period last year [13] Business Line Data and Key Metrics Changes - Financial products volume grew by 17%, while commodity sector volume increased by 15% [8] - Record quarterly volume from international business averaged 9,200,000 contracts per day, up 18% from the prior year [9] - Retail trading saw over 90,000 new participants, a 56% increase year over year, contributing to a record average daily volume of 4,100,000 contracts in Micro products [10][39] Market Data and Key Metrics Changes - EMEA region recorded a 15% increase in average daily volume, while APAC saw a 30% increase [9] - The strong growth in open interest was up by 7% from the end of Q2 2024 and 10% from year-end 2024 [8] Company Strategy and Development Direction - CME Group is focusing on retail traders and expanding partnerships with new online brokers to meet increasing demand [9][39] - The company announced a ten-year extension of its exclusive license to offer futures and options on NASDAQ indexes, ensuring continued access to these products [10][11] - CME Group is exploring tokenization technology in partnership with Google, aiming to enhance market efficiencies [76][78] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of markets amid global uncertainties, including geopolitical tensions and rising debt levels [20][22] - The company anticipates continued demand for risk management products, although predicting specific volume levels remains challenging [19][22] - Management expressed optimism about the retail segment's growth and the potential for further participation across various asset classes [31][32] Other Important Information - CME Group's adjusted effective tax rate was 23.3% for the quarter [13] - Capital expenditures for the second quarter were approximately $19,000,000, with cash at the end of the quarter totaling $2,200,000,000 [13] Q&A Session Summary Question: What are the key drivers that can sustain strong hedging activities going into the second half? - Management noted the difficulty in predicting volumes but emphasized the ongoing global risks that necessitate risk management [19][20] Question: Can you discuss the recent take-up of retail traders and their trading behavior? - Management reported unprecedented growth in retail participation and expressed confidence in continued engagement across various asset classes [30][39] Question: How is the company thinking about capital deployment given the cash balances? - Management indicated a balanced approach to capital deployment, focusing on opportunistic buybacks and maintaining a variable dividend structure [52][54] Question: How have tariffs impacted the physical commodities business? - Management noted that tariffs have led to market dislocations, increasing trading activity and volumes across various client segments [60][61] Question: Can you provide an update on FX Spot Plus and its impact? - Management reported strong initial uptake with significant daily volumes and new participants, enhancing market quality [110] Question: What are the company's views on stablecoins and tokenization? - Management is optimistic about the potential efficiencies from tokenization and is actively working on partnerships to implement these technologies [76][78]

Group 1 - Robert Thomson has been reappointed as CEO of News Corp for another five years, extending his tenure through June 2030 [1] - News Corp's portfolio includes notable subsidiaries such as the Wall Street Journal, Dow Jones, and HarperCollins [1] - The company has experienced its four most profitable years under Thomson's leadership [4] Group 2 - The Murdoch family previously explored a merger between News Corp and Fox Corp, but the effort was abandoned in 2023 due to resistance from influential shareholders [2] - Thomson has made strategic investments in growth areas like Dow Jones, Digital Real Estate Services, and Book Publishing [3] - The company has recently sold Foxtel to DAZN and established partnerships with tech platforms, including OpenAI [4]

Core Points - News Corp has extended CEO Robert Thomson's contract through 2030, highlighting his significant contributions to the company's growth and profitability [1][2] - Thomson has led News Corp during its four most profitable years from fiscal 2021 to 2024, with strong performance expected to continue in fiscal 2025 [1] - The company has engaged in major transactions, including the sale of its Australian cable-TV unit Foxtel for $2.19 billion in 2024 [2] - News Corp has established landmark agreements with major technology platforms, including a recent deal with OpenAI for licensing intellectual property [5] Company Performance - Under Thomson's leadership, News Corp has achieved its four most profitable years from fiscal 2021 to 2024 [1] - The company anticipates continued strong performance in fiscal 2025 despite challenges in the media landscape [1] Leadership and Vision - Lachlan Murdoch, News Corp Chair, emphasized Thomson's instrumental role in the company's growth and transformation during a period of rapid change [2] - Thomson expressed gratitude for the opportunity to lead a company that is passionate and principled, acknowledging the challenges and opportunities in the current media environment [5][6]