News (US:NWS)2025-08-05 22:02Financial Data and Key Metrics Changes - For fiscal year 2025, revenues increased by 2% to nearly $8.5 billion, while total segment EBITDA improved by 14% to just over $1.4 billion, marking a record for the company on a continuing operations basis [6] - Net income from continuing operations rose by 71% to $648 million, with profit margins increasing by 170 basis points to 16.7% [6] - In the fourth quarter, revenues rose by 1% to $2.1 billion, profitability grew by 5% to $322 million, and net income from continuing operations increased by 28% to $86 million [6][25] Business Line Data and Key Metrics Changes - Dow Jones reported a strong year with revenue and EBITDA rising by 48% respectively, with fourth-quarter revenues increasing by 7% to $604 million [12][26] - Digital real estate revenues rose by 9% for the year, with segment EBITDA increasing by 18% [14] - Book publishing achieved a 3% revenue increase to $2.1 billion, with segment EBITDA expanding by 10% [17] Market Data and Key Metrics Changes - REA posted a 12% revenue growth for the year, with audience reach improving significantly [17] - Digital real estate segment revenues were up 4% year-over-year, while segment EBITDA increased by 13% [31] - The New York Post continued to expand its influence and profitability, with plans for expansion in California [21] Company Strategy and Development Direction - The company remains focused on driving value across three pillars: Dow Jones, digital real estate services, and book publishing [9] - The recent sale of Foxtel Group has streamlined the portfolio and bolstered cash position, allowing for strategic acquisitions [9] - The company emphasizes the importance of protecting intellectual property in the age of AI, advocating for the value of content creation [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation towards high-margin content licensing and recurring digital revenues [23] - The outlook for Dow Jones remains positive, with expectations for continued margin expansion as the business shifts to B2B [38] - The company anticipates challenges in the housing market affecting digital real estate but remains optimistic about future growth [38] Other Important Information - The board authorized a new $1 billion stock repurchase program, in addition to approximately $300 million remaining from a previous program [7][24] - Free cash flow for fiscal 2025 was $571 million, up from $540 million in the prior year [7] Q&A Session Summary Question: Can you expand on the decision to accelerate the buyback? - Management indicated that the scale and pace of the buyback will increase, supported by improved free cash flow and the sale of Foxtel [43] Question: What is the strategy for Move and its growth adjacencies? - Management expressed positivity about realtor.com, highlighting revenue growth despite a sluggish property market and the focus on rentals, new homes, and seller segments [49] Question: What is the outlook for Dow Jones' revenue growth? - Management is optimistic about continued growth in both the professional information and consumer businesses, with a focus on risk and compliance [57] Question: Any updates on simplifying the company? - Management noted that the sale of Foxtel was a step towards simplification, and they are continuously evaluating the best use of capital [63] Question: What impact is AI having on the publishing business? - Management stated that they are not seeing negative trends from AI and are engaged in negotiations with several AI companies regarding IP rights [68]