News Corporation (NASDAQ:NWS) Q1 2016 Earnings Conference Call - Final Transcript

Nov 05, 2015 • 05:30 pm ET

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News Corporation (NASDAQ:NWS) Q1 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the News Corporation First Quarter Fiscal Year 2016 Earnings Call. Today's conference is being recorded. The media is invited to today's call on a listen-only basis.

At this time, I would like to turn the conference over to Mr. Mike Florin, Senior Vice President and Head of Investor Relations. Please go ahead, sir.

Executive
Michael Florin

Thank you very much, operator. Hello, everyone, and welcome to News Corp's fiscal first quarter 2016 earnings call. We issued our earnings press release about an hour ago. It's now posted on our website at newscorp.com.

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 Corporation's Form 10-Q for the three months ended September 30, 2015 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 a reconciliation of such measures can be found in our earnings release and our 10-Q filing. Finally, please note that certain financial measures used on 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 with some opening comments.

Executive
Robert J. Thompson

Thank you, Mike. News Corp is on track in its transition to a more digital and increasingly global future, having integrated several recent acquisitions and built a powerful platform for sustained growth. We have focused on driving a long-term expansion of revenue and profit, and leveraging the potency of our brands, while diligently confronting costs to maximize long-term returns for all investors.

During the last quarter, foreign exchange fluctuations obviously negatively affected revenue and EBITDA in our international operations, but this should not obscure the real progress made at many of our businesses. In fact, News Corp's revenues, excluding the effects of currency, grew 4% in the last quarter, underscoring the value of our shift to higher growth businesses and our prudent reinvestment strategy.

We believe the global economy is still in relatively unchartered territory, with U.S. interest rate rise pending and emerging markets still subject to political and economic volatility. From a macro perspective, our core markets are growing, but not at an optimum level. We are particularly pleased with the progress at realtor.com, which is significantly ahead of schedule on key metrics. We are now by some reckoning the world's largest digital property listings company.

Our majority-owned REA has just announced plans to acquire iProperty Group, the leading digital real estate operator in Southeast Asia. We also see a bright future in the U.S., where the national