News Corporation (NASDAQ:NWSA) Q2 2015 Earnings Conference Call - Final Transcript
Feb 05, 2015 • 04:30 pm ET
(Operator Instructions). Fraser McLeish, Credit Suisse.
Just a quick question on Move. Just noticing that ListHub is or Zillow is not going to be getting its listings from ListHub anymore. Just was that your decision or theirs? And what sort of impact in second half on your revenues and also what sort of strategic advantage do you think that's going to give you once those listings go? Thanks.
Well, certainly, we are in negotiations with Zillow up until recently, and they've filed a form, which declared that those negotiations had finished. So it's fair to say, if you want to put it this way, they took the initiative. It is now up to ListHub, of course, to recreate through the rather complex MLS system a -- which is -- or through -- Zillow through the complicated MLS system, a feed that takes into account that there are in total around 850 MLSs, and that -- frankly, that's their responsibility.
Now ListHub itself provides feeds to about 166 publishers, and we at Move, of course, have a direct feed from the MLSs. We don't use ListHub itself, which is a syndication services, and -- but what we do have at Move, quite frankly, are fresher listings, more accurate listings.
And that, we are going to make clear with our marketing over coming months, and we believe that once it becomes clear that, that -- they -- our IR comparative advantage is that users, as they already are, increase -- increasingly turn to realtor.com as their source of real estate listings and information. There is no material impact at all on our revenues through the Zillow move.
John Janedis, Jefferies.
Just a follow-up on your prepared remarks. Do you need any more scale through acquisitions in the real estate or book verticals if you will? And how do you think about your cash balance and the timing around the potential for return to capital given your desire to have that balance?
Certainly, with the Move acquisition, our immediate gain -- goal is to develop the potential of the company. As we've made clear, we're very excited about that. That will be an ongoing task in the next year or two.
As for the Book Publishing business, we've successfully integrated the Harlequin business into HarperCollins, which, as you can tell, performed very well during the quarter. We look ahead to more cost synergies at Harlequin, but we also look ahead with much optimism to the catalog that we have at -- more generally at HarperCollins.
As we said in the past, the first two years are years of consolidation and development and transformation. We're well on schedule there. We will -- we'll obviously be reviewing capital allocation in coming months, but that's really all we can say at this stage, but to reinforce our sense that we're pleased with the trajectory of the company and in particular with both the Book Publishing business and so far, from what we've seen, very much