NEWS CORPORATION.. (NASDAQ:NWS) Q1 2017 Earnings Conference Call - Final Transcript
Nov 07, 2016 • 05:00 pm ET
Good day, and welcome to the News Corp First Quarter Fiscal 2017 Earnings Call. Today's call is being recorded. Media is allowed to join today's conference in a listen-only basis. At this time for opening remarks and introductions, I would like to turn the call over to Mr. Mike Florin, Senior Vice President and Head of Investor Relations. Please go ahead, sir.
Thank you very much, Matt. Hello, everyone, and welcome to News Corp's fiscal first quarter 2017 earnings call. We issued our earnings press release about 30 minutes ago, and now posted on our website at newscorp.com. On the call today are Robert Thomson, Chief Executive; and Bedi Singh, Chief Financial Officer. We'll 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-K and Form 10-Q filings identify risks and uncertainties that could cause actual results to deliver and 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'll pass it over to Robert Thomson for some opening comments.
Thank you, Mike. The most recent quarter has highlighted the continuing digital development at News Corp at a time of great transition for media companies, many of which are struggling to cope with the evolution. A growing portfolio of digital products and our global character have enabled us not only to weather those profound changes, but to build a firm foundation for a profitable future. There is no doubt the two of our core markets, the US and UK, have been characterized by a certain amount of uncertainty in the economic and political environment, but we have remained focused on developing long-term and robust sources of revenue, while curtailing costs without undermining the quality of our uniquely valuable content.
Collaboration among our businesses has increased with the sharing of lessons, software and data to provide more valuable insights for our clients, readers and advertisers. During the first quarter of financial year 2017, despite a distinctly soft print advertising market and patent weakness in the British pound, our revenues were down only slightly. It is thus clear that our emphasis on digital real estate has given the company more resilience in even difficult trading period. We are still at the early stages of that real estate development, particularly in the US, where we are renovating Realtor.com, whilst living in the house. We expect the rates of growth at Realtor.com will increase later in the year as new products and pricing take hold in a US property market that is itself still recovering from the extreme dislocation of the financial crisis.
For the most recent quarter, total segment EBITDA declined 21% versus