News (US:NWSA)2020-08-08 08:03Financial Data and Key Metrics Changes - Total revenues for Q4 2020 were approximately $1.9 billion, down 22% year-over-year, reflecting the impacts of COVID-19 and the divestment of News America Marketing [33] - Total segment EBITDA was $195 million, down 28% year-over-year, with adjusted revenues falling 13% and adjusted total segment EBITDA decreasing 10% [33] - The net loss per share was $0.67 compared to a net loss per share of $0.09 in the prior year, including $292 million of non-cash impairment charges [33] Business Line Data and Key Metrics Changes - Dow Jones revenues for Q4 were $381 million, down 4% year-over-year, with digital revenues accounting for a record 71% of total revenues [34] - News Media segment revenues were $490 million, down 41% year-over-year, with advertising revenue falling 58% [37] - Digital Real Estate Services revenues decreased 16% to $238 million, primarily due to a decline in listings related to COVID-19 [40] Market Data and Key Metrics Changes - Digital advertising at Dow Jones was down only 7% in the quarter, while print advertising was down 43% [36] - Unique visitors across Dow Jones Digital platforms more than doubled in the quarter compared to the prior year [36] - The New York Post digital network reached 177 million monthly unique users during Q4 [23] Company Strategy and Development Direction - The company is focusing on digital transformation, with significant cost reductions and restructuring efforts across its publishing business [30][31] - A shared service program is being launched to centralize functions and reduce costs, expected to have a materially positive impact on the bottom line [12][13] - The creation of the Dow Jones segment allows for better performance comparison with peers, highlighting its growth potential [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed confidence in the company's ability to adapt and thrive in a digital-first environment [7][8] - The company expects continued growth in digital subscriptions and is taking steps to stabilize the News Media segment through aggressive cost targets [32][39] - Management noted that the advertising environment is expected to improve gradually, with strong digital trends observed [51] Other Important Information - The company reported a cash balance increase of $129 million to over $1.5 billion as of June 30 [8] - Digital subscriptions across News Corp Australia rose 25% to nearly 650,000 by the end of the fiscal year [22] - The company plans to hold an Investor Day in mid-September to provide more insights into Dow Jones' potential [21] Q&A Session Summary Question: Cost program for Foxtel and simplification agenda - Management confirmed that the $100 million in savings includes sports rights savings and emphasized that simplification is an ongoing process [56][58] Question: COVID-19 impact on revenue - Management clarified that the COVID-19 impact is net of all potential costs and revenue impacts, and noted that advertising trends at Dow Jones have improved since May [61][65] Question: Digital advertising trends at Dow Jones - Management attributed strong digital advertising performance to a unique media property structure and a growing subscription funnel [66][69] Question: Revenue impact from Australian newspaper closures - Management indicated that the closure of 112 mastheads in Australia represented about $20 million in revenue impact for Q4 [71][72] Question: Binge subscriber numbers and Telstra - Management confirmed that Telstra's sales channel numbers are included in Binge's subscriber counts [75][76]