News (US:NWSA)2021-02-05 22:13Financial Data and Key Metrics Changes - Total revenues for the second quarter were over $2.4 billion, a decline of 3% year-on-year, primarily due to the sale of News America Marketing in 2020 [9][28] - Segment EBITDA for the quarter was $497 million, representing a 40% year-over-year increase, marking the highest quarterly segment EBITDA since the company's formation in 2013 [9][28] - Net income for the quarter was $261 million compared to $103 million in the prior year, with diluted earnings per share of $0.39 versus $0.14 in the prior year [29] Business Line Data and Key Metrics Changes - Digital Real Estate Services segment revenues increased by 15% to $339 million, with Move accounting for over 75% of segment revenue growth [29][30] - Subscription Video Services segment revenues were $511 million, up 2% year-over-year, with segment EBITDA improving 77% to $124 million [33][35] - Dow Jones revenues for the quarter were $446 million, up 4% year-over-year, with segment EBITDA rising 43% to $109 million [36][38] - HarperCollins posted a 23% revenue growth to $544 million, with segment EBITDA growth of 65% to $104 million [39] Market Data and Key Metrics Changes - Move's revenue growth was 28%, with real estate revenues rising 30% [30] - Average monthly unique users for realtor.com reached 80 million, reflecting a 37% year-over-year increase [30] - Digital advertising at Dow Jones expanded by 29%, marking the highest quarter in Dow Jones history [38] Company Strategy and Development Direction - The company is focused on a long-term strategic shift towards digitization and cost discipline, which has contributed to increased profitability [7][8] - The acquisition of Elara Technologies is expected to enhance the company's presence in the Indian digital real estate market [15] - The company aims to leverage its digital assets and improve ad tech capabilities to drive revenue growth [54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the housing market in the U.S. and Australia, despite ongoing challenges from COVID-19 [14][15] - The company anticipates some slowdown in second-half results due to the unpredictable macro environment [44][48] - Management remains cautious about the sustainability of growth in the Move segment, given the historically low listing volumes across the industry [59] Other Important Information - The New York Post reported a significant increase in digital advertising revenues, up 64% year-over-year, achieving its highest digital revenue since 2013 [43] - The company has secured long-term rights to popular sports, enhancing its content offerings for the Foxtel platform [22] Q&A Session Summary Question: What is driving the outperformance in digital advertising at Dow Jones? - Management attributed the success to a strong team and improved ad tech capabilities, leading to growth across various categories [52][54] Question: What trends are being monitored for Foxtel's next steps? - The focus will be on OTT growth and managing broadcast subscriber stability while continuing cost reductions [55][56] Question: What is the outlook for Move's revenue growth? - Management remains confident in Move's growth, expecting continued revenue increases despite low industry listing volumes [59] Question: Are there permanent cost reductions in News Media? - Some cost reductions are permanent, while others may fluctuate based on business performance; further opportunities for cost reductions are being explored [63] Question: How many Live Pass users are expected to transition to Kayo? - Management believes a significant number of Live Pass users will migrate to Kayo, but specific numbers are not yet available [65]