Good day and welcome to the News Corp First Quarter Fiscal 2022 Conference Call. Today's conference is being recorded. [Indiscernible] will be on a listen-only basis. At this time, I would like to turn the conference over to Mike Florin, Senior Vice President and Head of Investor Relations. You may begin, sir.

Thank you very much, Bobby. Hello, everyone, and welcome to News Corp 's fiscal first quarter 2022 earnings call. We issued our earnings press release about 30 minutes ago, and is now posted on our website at newscorp.com. On the call today are Robert Thomson, Chief Executive, and Susan Panuccio, Chief Financial Officer. We will open with some prepared remarks, and then we'll be happy to take questions from the investment community. This call will include certain forward-looking information with respect to News Corp's business and strategy. Actual results could differ materially from what is said. News Corp's Form 10-K and Form 10-Q filings identify risks and uncertainties that could cause actual results to diver contain cautionary statements regarding forward-looking information. Additionally, this call will include certain non-GAAP financial measurements, such as total segment EBITDA, adjusted segment EBITDA, and adjusted EPS. The definitions and GAAP to Non-GAAP reconciliations of such measures can be found in our earnings release. With that, I will pass it over to Robert Thomson for some opening comments.

Thank you, Mike. We are journeying through the contours of our complex commercial landscape that has been a staling test of the metal of companies and countries. For us, the first quarter was the most profitable of its kind since the relaunch of News Corp in 2013. Continuing the trends that were evidenced in the last financial year and building on those rapid rates of growth. And we continue to have much confidence in our immediate and long-term prospects. I would like to honor the work done by our employees around the world. They have cut with extraordinary exigencies and provided a prevalence service to their customers and to their communities that the Company's purpose has endured and indeed thrive through such challenging times is a tribute to repute and Lachlan Murdoch and the culture they created and have curated. Revenues for the quarter were $2.5 billion, an increase of 18%, while our profitability rose 53%. I should repeat that figure for clarity, profitability rose 53%. It is worth bearing in mind that this increase follows a 21% increase in profitability in the first quarter last year. Every one of our key operating segments posted significant revenue expansion and strong segment EBITDA growth. I would like to reiterate that our Board authorized $1 billion stock repurchase program in September. As we previously indicated, we have refrained from executing on the buyback during this quiet period, but that period officially ends in coming days. It is a very different buyback to that which was approved in 2013, when we were unsure about share dislocation at the time of the separation from Fox. We now have confidence in our performance, our resilience, our ability to generate cash for our investors, and our potential. Bolstering that confidence is the fact that our recent…

Thank you, Robert. As Robert mentioned, strong operation dimension that, made last year so successful has continued into our first fiscal quarter results. Fiscal 2022, first quarter total revenues, were over $2.5 billion up 18% marked by higher revenue growth across all our key segments, notably at Digital Real Estate Services. Total segment EBITDA, was $410 million up 53% versus the prior year. The highest quarterly growth rate since 2017, despite the challenges from the lockdowns in Australia and comparing against 21% total segment EBITDA growth in the prior year. Excluding acquisitions, currency fluctuations, and other items disclosed in the release, adjusted revenues and adjusted total segment EBITDA, rose 10% and 47% respectively. Reported EPS were $0.33 as compared to $0.06 in the prior year. Adjusted earnings per share were $0.23 in the quarter compared to $0.08 in the prior year. Moving on to the results for the individual reporting segments, starting with Digital Real Estate Services, segment revenues were $426 million, an increase of 47% compared to the prior year, on an adjusted basis, revenues increased 29%. Segment EBITDA rose 16% to a $138 million or 21% on an adjusted basis. Despite the higher investment spending at move and REA, and tough comparisons against the prior year cost declines implemented to counter the impact of COVID. Move 's revenues were $180 million, a 30% increase year-over-year, with real estate revenues rising 39% and accounting for 87% of total revenues. Revenue growth was again led by the traditional lead-generation business benefiting from strong agent demand and improved sell-through and yields. We're also seeing early success with the roll-out of Market VIP, a hybrid product offered to Move's top-performing agents. The referral model saw strong revenue growth, and accounted for approximately 32% of revenues driven by record high in values and…

Thank you. [Operator instructions]. If you're using a speakerphone, please make sure the mute function is turned off to allow your signal to reach our equipment. [Operator instructions]. Please limit your questions to one at a time. We will pause for just a moment to allow everyone an opportunity to signal for questions. Our first question comes from Entcho Raykovski with Credit Suisse.

Hi Robert. Hi Susan. I've got one question, one just very quick follow up. Basically, you comment on maximizing value at Foxtel. Obviously, this has been widely reported in the press, but is an odd [Indiscernible] option you considering. And what's the potential timing on whatever considerations do you have? And then secondly, just, I know Robert you mentioned, [Indiscernible] winding down. They [Indiscernible] model. Do you expect to see any impact on Move? I mean, could that perhaps get [Indiscernible] closer to some agent to perhaps an indecent franchise bio Move, any comments would be helpful.

Entcho, on Foxtel. Look, it's inappropriate at this moment to discuss specific to the review. But clearly, we and our partners at Telstra recognized that the prospects of Foxtel have changed fundamentally and that we have a streaming success story. Look, we've had cutting edge world cost tech and we have a user interface. But as vastly improved and we have a team led by Patrick and [Indiscernible], and they will drive further success most surely. Think about how the narrative has changed over the past two years. As you recall, we had been asked about the skeptics whether we would need to put more money into the Company. And let's examine what happened. We took a majority stake because we believed more clarity, more responsibility, more decisiveness was necessary. We've used our media platforms to complement and promote the quality of Foxtel. Our team made some tough decisions to rationalize, made some smart decisions on streaming and systems and here we are today. So, whatever we do we will not be naive, naivety is not now [Indiscernible]. And as for Zillow, obviously, we had discussed ourselves getting into bricks-and-mortar but we had a very clear sense of the digital priorities. Don't forget that we had revived -- renovated the distinctly unfashionably realtor.com. We bought it on the cheap net about $700 million. What's it worth now, $6 billion [Indiscernible] What will it be worth in 5 years as the inevitable digital march continues [Indiscernible] $20 billion [Indiscernible] So we've been very focused, diligently so to service for vendors, buyers, and realtors. As for Zillow, look, the idea that it was simple to find a great plumber plus or a plan or a planter, the idea, the process was not variable and subject to vicissitudes, the idea that holding inventory…

Thank you. And Joe, Bobby, we'll take our next question please.

Thank you. Our next question comes from Alexia Quadrani with JP Morgan.

Thank you. In the news Media business, I was wondering if you could sort of pontificate or give us an idea of what you think the overall opportunity is even longer-term from licensing fees, from tech platforms over time. And then just a quick follow-up on Foxtel, with some of the streaming platforms, the S5 players launching their own platforms in Australia. Do you see that as incremental competition or how should we be that?

First of all, on News Media, what you're seeing is really a transformation led by our chains, as Susan mentioned. Whether it be ad revenue, which shouldn't -- in the UK was up 36%, Australia 5%, New York Post, 32%. SEC revenues overall up 16%, in the UK 13%, Australia 9%. You're seeing a lot of hard work done by our teams in being very diligent about costs, but also being focused on growth. Certainly, the big digital deals will make a difference to all of our publications. And frankly, all we can say given the constraints of confidentiality, is it the deals mean that comfortably over 9-figures are flowing into the News companies in return to the highest quality new services in 3 separate continents. Though unfortunately we are yet to reach agreement with Facebook, or the artist formerly known as Facebook in the UK. We are watching closely the evolution of possible legislation there that channels the Australian legislation, which would be handled. With Google as well, it's not just about payments. It also means working together on new products in audio and video. And that's the content side. And those are productive discussions [Indiscernible] ideal, and it applies to both companies is the ad tech conundrum. We have always kept the ad tech issue to one side as I strongly believed that there were 2 components in need of resolution: the value of content and digital ad dysfunction. I was fairly confident there would be document discovery and the Texas Attorney General 's complaint has revealed some of the rather disturbing details. And I have little doubt that the Department of Justice will add to that detail in coming days. Now, how we resolve these issues does indeed remain to be seen.

And Alexia, on your second question you asked about the SFUAD competition within Australia. And I think the Foxtel team did a great job of talking about this at the strategy day. Around -- basically the great content they have within sports, particularly the AFL and our own quicker contracts that they have. They had long-term relationships with the studios and have developed a very good working relationship with them. And there is great aggregator of the services down there. So, I think, while there is clearly competition that is coming into that marketplace down there, they are operating very well within that current environment.

Thank you.

Thank you, Alexia. Bobby, we'll take our next question, please.

Our next question comes from Craig Huber with Huber Research Partners.

Yes. Hi. My first question, you talked about, like in relation to a question from one of the guys on the phone that you will -- on the ongoing review of Foxtel from strategic standpoint. I'm just wondering for the rest of the Company is there any other reviews going on and then obviously, a lot of investors view rightly or wrongly that the Company is overly complicated as if I'm wondering if there's any other ongoing reviews going on with the Company? And my other just nitpick question usually tell us what the changes year-over-year in EBITDA at realtor.com, can you provide that for the quarter, please. Thank you.

Craig, as a simplification, kindly we are constantly reviewing our structure. As you know, we've sold quite a few companies along the way. The local newspaper business at Dow Jones, which we presumed would struggle and that didn't turn out to be the case. Amplify which found a bit of home. News America Marketing was less meaningful to us as sprint sales declined somewhat. unruly, which has found a welcome home elsewhere and within we still have a relationship. But Ad-tech let say is for others. So, we will constantly be institutionally introspective, reviewing our structure with Foxtel or Digital Real Estate, or -- as we have done to designate Dow Jones as a separate segment so that you can see not only the potential there but also to be clear about the very positive progress that the team is making in news media. We've made many changes. Those changes have been productive and profitable, and we will never stop questioning or challenging ourselves.

And Craig, just on your question in relation to REALTOR, as you know we don't give the EBITDA number but the year-on-year difference was up $6 million negative in relation to REALTOR. And one of the main reasons for that is the continuing investment in growth in that business within marketing and headcount.

Thank you

Thank you, Greg. Thanks, Greg. Bobby, we'll take our next question, please.

And our next question comes from Brian Han with Morningstar.

Hi. 2 very quick questions if I may. On capital management, are there any technical or legal impediments to increasing your annual dividend amount, or do you feel that buyback just gives you more flexibility down the track. And secondly, enrolled -- let me try this again. But can you please comment on how much EBITDA was booked in the first quarter from the licensing deals with the big digital platforms.

Clearly, we've focused on the buyback and we're now in a position to begin the buyback, as we've had to wait until the earnings announcement, given the regulatory restrictions in the quiet period. That quiet period, is almost over and you will soon hear the sound of buyback. The pacing depends on being rational about the trends in the market, but this is a very different buyback to that initiated the time of the split. As you know well, at that moment, we were worried about unexpected share dislocation. And what are the provision to intervene if and when necessary, during that unprecedented unpredictable period. Now, we're on an entirely different epoch. The Company patently has momentum. We are confident about our cash generation potential, our ability to both invest to grow, and to return capital. So, as I mentioned, now that the quiet period is almost over, you will soon hear the sound of buyback.

And Brian, just in relation to your question on the content licensing, we haven't given out that number apart from saying it was going to be into 9 figures. And just in relation to how that's going to be pacing over the course of the year. We would expect to grow as more products within those particular contracts launched like for instance, showcase over here in the U.S. So, we would expect to see that build as we go throughout the year. And we talked previously in relation to that about a high-level allocation of switching between the News Media segment and Dow Jones.

Thank you. Brian. Bobby, will take our next question, please.

No further questions at this time. I will turn the call back over to you for any closing remarks.

Great. Well, thank you, Bobby. And thank you for all participating. We look forward to talking to you soon. Have a great day. Take care.