News (US:NWS)2025-11-06 23:00Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 rose 2% year-over-year to $2.14 billion, while total segment EBITDA increased by 5% to $340 million [4][19] - Net income from continuing operations was $150 million, slightly up from $149 million last year, and adjusted EPS rose from $0.20 to $0.22 [4][20] - Total segment EBITDA was negatively impacted by a $13 million write-off related to a book distributor closure [19] Business Line Data and Key Metrics Changes - Dow Jones segment revenue increased by 6% to $586 million, with digital revenues accounting for 84% of this segment [20][21] - Digital real estate services reported revenues of $479 million, up 5% year-over-year, with segment EBITDA rising 13% to $158 million [25] - Book publishing segment revenue declined by 2% to $534 million, with EBITDA down 28% to $58 million, impacted by a $13 million write-off [28] Market Data and Key Metrics Changes - Digital revenues have almost doubled to 62% of total revenues since fiscal 2018, with Dow Jones and digital real estate accounting for 49% of revenue and 84% of EBITDA in fiscal 2025 [18] - Digital advertising revenues represented 68% of total advertising revenues for the quarter, a new record [9] Company Strategy and Development Direction - The company is focusing on maximizing shareholder value through accelerated share buybacks, with a current repurchase rate of approximately $2.5 million per day [17] - The strategy includes expanding partnerships in AI and digital content, while also addressing piracy issues in the industry [6][5] - The company aims to enhance its digital offerings and maintain a strong position in the professional information business [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the housing market, driven by lower interest rates, which is expected to boost revenues in digital real estate [10][31] - The book publishing segment is anticipated to improve in the coming months, with recent trends showing a rebound in orders [16][31] - Management remains confident in the growth potential of Dow Jones and digital real estate, despite ongoing macroeconomic uncertainties [18][30] Other Important Information - The company has made strategic acquisitions, such as EcoMovement, to enhance its data offerings in the professional information sector [9][22] - The digital real estate segment is targeting growth in new homes, rentals, and premium offerings, which collectively accounted for 22% of revenues this quarter [10][26] Q&A Session Summary Question: Concerns about sustaining double-digit revenue growth at Realtor - Management highlighted the focus on growth areas such as sellers, new homes, and rentals, indicating a positive outlook for revenue growth despite current market conditions [33] Question: On the accelerated share repurchase program - Management confirmed the buyback rate has increased significantly and expressed willingness to further increase it if deemed optimal [35] Question: Impact of the Factiva dispute settlement on revenues - Management noted improved performance in Dow Jones, with a 16% increase in Risk and Compliance revenues, and mentioned new customer acquisitions [37] Question: Future simplification of the business structure - Management indicated openness to structural changes and emphasized the importance of maximizing shareholder returns [39] Question: Growth potential in Risk and Compliance - Management expressed optimism about continued growth in Risk and Compliance, driven by regulatory demands and new business opportunities [41] Question: Trajectory of the news media business - Management noted slight revenue growth and significant improvements in EBITDA, driven by cost efficiencies and strong advertising performance at the New York Post [42]