News Corporation (NASDAQ:NWS) Q2 2015 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 04:30 pm ET


News Corporation (NASDAQ:NWS) Q2 2015 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the News Corporation Second Quarter Fiscal Year 2015 Earnings Conference call. Today's call is being recorded. Please be advised media is invited on a listen-only basis. At this time, I'd like to turn the conference over to Mike Florin, Senior Vice President and Head of Investor Relations. Please go ahead, sir.

Michael Florin

Thank you very much, operator. Hello, everyone, and welcome to News Corp's Fiscal Second Quarter of 2015 Earnings Call. We issued our earnings press release about 30 minutes ago. It's now posted on our website at On the call today are Robert Thomson, Chief Executive, and Bedi Singh, 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 may 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-Q for the 3 months ended December 31, 2014, identifies risks and uncertainties that could cause actual results to differ, and these statements are qualified by the cautionary statements contained in such filings.

Additionally, this call will include certain non-GAAP financial measurements. The definition of and reconciliation of such measures can be found in our earnings release and our 10-Q filing. Finally, please note that certain financial measures used in this call such as segment EBITDA, adjusted segment EBITDA and adjusted EPS are expressed on a non-GAAP basis. The GAAP to non-GAAP reconciliation of these non-GAAP measures is included in our earnings release. With that, I'll pass it over to Robert Thomson for some opening comments.

Robert J. Thomson

Thank you, Mike. In the second quarter of fiscal year 2015, we continued to pursue the long-term development of the company as well as delivering positive results in the here and now with reported revenues of $2.3 billion, up 2%, stable EBITDA of $328 million, and a rather healthy free cash flow. Importantly, excluding currency fluctuations during a patently volatile period in the ForEx market, acquisitions and other nonoperating costs, our adjusted EBITDA grew by a robust 4%. That makes 2 successive quarters of improving revenues year-over-year, signaling that the transformation is on track and that most of our core businesses are delivering solid results. At the heart of the metamorphosis of a company with a proud provenance, a very proud provenance, is our promise to become more digital and increasingly global, and both of those characteristics are clear in the numbers today.

It is also worth noting that these achievements come despite a very uneven global advertising market. Advertising remains distinctly short term, making prognostication difficult, but the diversity and the depth of our portfolio have provided a solid buffer. This quarter marks the first time partial results from Move are included. Although we don't yet have a full quarter of performance, it is fair to say that the expansion of our Digital Real Estate portfolio should provide a firm foundation for future growth, and our confidence