News Corporation Price & Performance (NWS)

We issued our earnings press release about thirty minutes ago, and it's now posted on our website at newscorp.com. On the call today are Robert Thompson, Chief Executive and Lavanya Chandra Shekhar, Chief Financial Officer. We'll open some prepared remarks and I'll be happy to take questions with respect to News Corp's business and strategy actual results could differ materially from what is said. News Corp's Form 10 ks and Form 10 Q filings identify risks and uncertainties that could cause actual results to differ 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 the earnings releases for the applicable periods posted on our website. With that, I will pass it over to Robert Thompson for some opening comments. Thank you, Mike. News Corp had yet another fruitful quarter qualitatively and quantitatively. Revenues on a continuing operations basis, which excludes Foxtel, grew 5% to $2,240,000,000 while profitability rose 20% to $478,000,000 as we made significant progress in our digital development. A few more metrics to highlight our performance.

Net income from continuing operations surged to $3.00 $6,000,000 a 58% increase compared to the same quarter in the previous year. That is correct, 58%. While our EPS from continuing operations was $0.4 compared to $0.28 in the prior quarter. And our overall margin rose from 18.7% to 21.4%. Our three pillars of growth digital real estate, Dow Jones and book publishing continued to expand their segment EBITDA robustly, while we saw the positive impact of rigorous cost discipline and digital development in our News Media segment. With a keen eye on our innate strengths, we took a significant step towards simplification with the agreement to sell Foxtel to Dazon, a premier global sports streaming provider. For a total enterprise value of AUD3.4 billion or approximately seven times Foxtel's fiscal twenty twenty four EBITDA. The agreement is a tangible recognition of Foxtel's Foxtel's successful digital transformation. And should surely benefit our shareholders, our partners at News Zone, and all Australian sports fans. We expect the transaction to close in the second half of the current fiscal year subject to regulatory approvals and other customary closing conditions. Hence, Foxtel financials are now reported as discontinued operations. The sale of Foxtel should have a meaningful impact on our balance sheet.

Upon closing, Foxtel's outstanding shareholder loans will be repaid in full, including $5.70 74,000,000 to News Corp, while its third party debt will be transferred with the business. News Corp will also hold an approximate 6% stake in the fast growing DAZON. We are proud to be long term partners with the Desone team and see material value upside potential In the growth of a company, is at the cutting edge of international sports development. I encourage all to download their app and delve into a vast range of sports. In the wake of this important deal, we were delighted that both S and P Global and Moody's upgraded our credit rating to investment grade, reflecting the impact of our long term strategy of focused investment and an emphasis We certainly lead the way in providing priceless content for generative AI.

And remain vigilant in our pursuit of degenerative AI and abuses of our intellectual property. We are pleased with our partnership with OpenAI and hope that other companies in the segment take a similarly enlightened approach. Our legal action against the Perplexing perplexity is underway. And we look forward with Ralish to document discovery. We firmly believe that this discovery process will be an important phase, not just for us, but for all who cherish the sanctity of IP. The sudden rise of Deepseek is itself a solitary lesson for all AI players. If they are unable to host fresh, trusted news, their version of AI will lack immediacy and relevance. Data centers and energy sources and newfangled chips may well be essential AI infrastructure. [indiscernible] ultimately, we believe content will be king in the world of AI. One rather general generic post election observation. We are seeing a tangible increase in business confidence here in The U. S. Since the election. The temporary turmoil of transactional tariffs aside. There is the confluence of economic optimism and a cultural awakening with the yoke of woke having been lifted. We believe these trends should lead to less superfluous gratuitous regulation greater capital formation, increased opportunities for all Americans and more candid creative compelling conversations.

Hopefully, an era of censorship and so censorship is receding into the distance. As for specific segments, digital real estate revenue increased 13% to $473,000,000 and segment EBITDA burdened 26% to $185,000,000 That strength came despite significant growth in the prior year quarter at REA, and reflected renewed revenue growth at realtor.com, despite the still hostile housing market conditions in The U. S. With the thirty year mortgage rates above 7% in recent weeks. Clearly, realtor.com's efforts to strengthen adjacent revenue streams are paying off. Accelerated growth in rental, and new homes News. Realtor continues to make significant progress in engagement. As evidenced by the highest repeat visitation and most number of views per visit in the industry in December as per Comscore. REA, the success story continues. As the company achieved a quarterly record in revenue while extending its audience leadership and reinforcing its position as Australia's preeminent property side. REA achieved 129,000,000 average monthly visits during the quarter, nearly four times more than the nearest competitor. On average. Listing volumes rose 4%, with yield growth at 14%, while our India division continued to post healthy revenue growth. At Dow Jones, revenue grew 3% to $600,000,000 Segment EBITDA expanded 7% to $174,000,000 and margins rose an impressive 110 basis points.

While overall performance in the first half of the fiscal year has been strong, we expect year over year growth to increase in the second half of the year. In Q2, digital circulation revenue grew year over year at its fastest pace in two years. As digital ARPU improved sequentially. And the conversion from introductory promotions and digital bundle offers ran ahead of expectations. Readers derive significant value from our prestige portfolio, The Wall Street Journal [indiscernible] IBT and MarketWatch. And we believe there is potential for revenue improvement as we emphasize the strength and the distinctiveness of individual titles. Risk and Compliance and Dow Jones Energy reported revenue growth of 1110% respectively.

And the teams continue to benefit from new products such as Advanced Screening and Monitoring and Analytics Pro that add meaningful value for our compliance focused risk averse clients. New initiatives contributed about one third of B2B revenue growth this quarter. Now more than ever, Dow Jones and compliance clients are navigating rapidly changing regulations and sanctions. This complex environment in The U. S. And globally boosts demand for risk and compliance products. As organizations rely on our expert insights, and comprehensive data to make informed decisions and to stay compliant.

The uncertainty regarding the transactional tariffs is driving demand for Dow Jones Energy's insights and forecasting services, as clients seek to understand the potential impact on global energy markets [indiscernible] investment opportunities. Book Publishing reported yet another exceptional quarter. Performance at Harbourcons UK and a healthy mix of titles. Margins improved thanks to buoyant sales of backlist books and a particularly noteworthy 13% increase in audio revenue. Among the bestsellers, the Pumpkin Spice Cafe and the First volume of shares memoirs were standouts. The successful cinematic release of Wicked led to strong sales of Gregory Maguire's Full Book series, and we anticipate a further boost from the next installment in that series. The positive cycle should continue with the release of the hit film [indiscernible] later this calendar year. At News Media, revenue fell a modest 2% to $570,000,000 but segment EBITDA grew an impressive 30% to $74,000,000 Success in the quarter was driven by the transition of Talk in The U. K. To streaming and our commercial printing partnership with DMG, as well as reduced costs at Use Australia. Overall, ad trends moderated, while The Times posted its largest quarterly net additions of paid digital subscriptions [indiscernible] two years, Digital advertising grew by 13% at The New York Post, where profitability was also assisted by our OpenAI deal.

News Media generally has clearly benefited from those OpenAI revenues and we are pleased with the progress in our partnership with Sam Altman and his exceptional colleagues. Content is but one part of a broad deal. And for example, our legal and government affairs teams are swapping ideas and experiences as we negotiate the nuances of AI. As part of our partnership, News Corp content will be featured in open AI's new operator. Product, ensuring prominence for our journalism in the burgeoning world of agentic AI. Companies are striving to ensure that the A in AI does not stand for anarchy, an alphabetic, or absurdity. In a world in which so many media companies and masterhoods are in terminal decline, Our business is thriving. Thanks certainly to the diligent and creative work of our talented teams, and the savvy strategic guidance of Lochlan and Rupert Murdoch and our astute Board of Directors. Speaking of talent, I am honored to introduce our new Chief Financial Officer, Lavanya Chandrasekhar, who will eloquently expand on the exegesis.

Thank you, Robert, for the kind introduction. I am delighted to be with all of you today and look forward to meeting many of you in the coming months. I'm excited to join Newscorp News met the company's continued As Robert mentioned in December, we announced an agreement to self Foxtel. [indiscernible] Which News new scope will allow for a greater focus on our core growth pillars, and should reduce our future capital intensity. Turning to the quarter. And year to date periods, And subscription video service is no longer a reportable segment. I will not speak to Foxtel's results on this call, and they are excluded from the numbers I will be discussing today. More information will be available in the 10 Q to be filed tomorrow morning. We will also be filing an eight ks, which recast historic financial information. News Corp reported fiscal second quarter revenues on a continuing operation basis of $2,200,000,000 rising 5% year over year and total segment EBITDA of $478,000,000 increasing 20% year over year. Margins improved by nearly two seventy basis points to 21.4%. The three core pillars Dow Jones, digital real estate and book publishing collectively grew revenue by 7% and Second quarter adjusted revenues rose 4% compared to the prior year, with the difference from reported primarily due to currency impact while adjusted total segment EBITDA rose 20% versus the For the quarter, we reported earnings from continuing operations per share of $0.4 compared to $0.28 in the prior year.

Adjusted earnings from continuing operations per share were $0.33 in the quarter compared to $0.27 in the prior year. Moving to the individual segments. Starting with Dow Jones. Dow Jones reported revenues of $600,000,000 up 3% year over year similar to the first quarter. And was again the largest segment contributor to overall company revenue. Digital revenue accounted for 81% of total Dow Jones segment revenue this quarter improving three percentage points from last year. Overall, professional information business revenue which reflects our B2B products, rose 4% year over year notwithstanding an over 300 basis point adverse impact from Factiva primarily due to the ongoing customer dispute that we mentioned last quarter. With the impact greater in the second quarter. This quarter, the growth came from new customers, new products and improved yield at risk compliance, which grew 11% to $80,000,000 including a modest negative FX impact due to European exposure. And Dow Jones Energy, which grew 10% to $68,000,000 with customer retention During the quarter, Risk and Compliance enhanced its product offerings with the acquisition of WorldECR, a London based provider of export control and trade sanction news. And in energy, we continue to see strong demand for newer products associated with carbon, Retail fuels and liquefied petroleum gas and experienced robust pipelines and strong closing rates.

Within the Dow Jones Consumer business, circulation revenues rose 3% versus the prior year, benefiting from improved digital circulation revenues of eight double the quarter '1 rate and the highest quarterly growth in two years. We have started to benefit from the conversion to higher pricing from our digital subscriptions added in the past year via introductory promotional offers. Digital ARPU also increased quarter over quarter. Digital circulation revenues accounted for for 73% of circulation revenues for the quarter, up from 70% in the prior year. Digital only subscriptions improved by 13% year over year and by 27,000 sequentially Negatively impacted by the phasing of marketing promotions and seasonality, Particularly related to students, and some industry headwinds from search algorithms. That said, we do expect stronger volumes in the third quarter. Bundling subscriptions for the quarter improved by 45% year over year to over 950,000 while also benefiting from improved yield. With the focus on the three product bundle of Wall Street Journal, MarketWatch and Barron's. Print volume declined by 16% year over year But its sequential decline was the lowest since the fourth quarter of fiscal twenty one. Advertising revenue of $121,000,000 moderated from the prior quarter to a decline of 4% year over year.

As Sprint declined 10% with digital flat. An improvement from the first quarter. Digital represented 64% of advertising revenues 62% last year. Dow Jones segment EBITDA for the quarter grew 7% to $174,000,000 with margins increasing to 29%. Moving on to digital real estate. Digital real estate had another exceptional quarter with versus the prior year and 12% on an adjusted basis. Segment EBITDA was $185,000,000 up 26% driven by higher profit contribution from REA Group the highest growth since 2021. Adjusted segment EBITDA grew 25%. REA had an outstanding quarter with revenues rising 17% year on year $343,000,000 marking its highest ever quarterly revenue on record. Growth was again driven by a combination of residential yield increases continued strong growth in national listings and customer contract upgrades. Residential yield growth improved by 14%. Newbuy listings rose approximately 4% with Sydney and Melbourne each up [indiscernible] Please refer to REA's earnings release and their conference call for more details.

Realtors revenue for the quarter of $130,000,000 were up 2% compared to the prior year. Marking the first year over year improvement since the fourth quarter of At Realtor, real estate revenues were essentially flat as lower referral and lead generation revenues were largely offset by accelerating growth Lead volumes fell 2%, while average monthly unique users for the [indiscernible] fell 6% year over year 62,000,000 at realtor.com. However, Realtor continues to maintain strong audience share despite much higher competitive marketing spend underscoring the strength and quality of their audience. Realtor also continued to show strong traction on new revenues As seller, new home and rentals, represented 20% of revenues and we anticipate continued strong growth in these adjacencies going forward this fiscal year. At Book Publishing, momentum from the prior year continued with the year over year growth improving from first quarter with revenues of $595,000,000 up 8% while segment EBITDA improved by 19 percent $101,000,000 Margins expanded by 150 basis points to 17% as positive operating leverage, was underpinned by strong digital and backlist performance. We saw strong growth in Christian publishing from higher Bible sales and very strong sales in The UK, as Robert mentioned.

Harper continued to benefit from strong physical book orders and continued robust audio Book growth across all regions. HarperCollins posted digital revenues of $120,000,000 Increasing 9% from the prior year driven by strong audiobook growth across all regions including increased adoption at Spotify and increased performance from Audible. In total, digital sales represented 21% of consumer revenue in line with the prior year. Audio books grew 13% year over year a slower rate than quarter one, as we began to lap the initial rollout from Spotify in The UK, Australia and US. From 60% last year. Turning to news media, Overall revenue performance improved from the first quarter with advertising and the segment benefited from increased cover prices and subscription pricing across Mastheads. Revenues for the quarter were $570,000,000 down 2% versus the prior year, while adjusted revenues fell 3%. Note that both periods were recast to include the contribution from Sky News Australia which previously had been included in the subscription video service segment. Sky News contributed $17,000,000 in revenues [indiscernible] Segment EBITDA showed strong improvement rising 30% year over year driven by cost savings initiatives as we mentioned last quarter most notably The U. K, from the benefits of the commercial printing joint venture with DMG Media and lower talk costs.

Adjusted segment EBITDA increased 28 Turning to the outlook. Market trends remain mixed geographically. And given the current spot rates for the Australian dollar and pound sterling versus the U. S. Dollar, we expect currency translation to be a headwind in the second half.

Some of the themes across each of our segments. At Dow Jones, the team remains focused on B2B growth, including upselling News new products across risk and compliance, As Robert mentioned, for total Dow Jones, we in the second half. [indiscernible] due to investment notably in B2B. However, we will continue to focus on cost efficiencies to drive growth. At Digital Real Estate, Australian residential new buy listings for January were up 3%. Refer to REA for more detailed outlook commentary. Realtor.com will continue to focus on technology improvements and enhance content and product offerings with the goal to be best positioned to drive share We hope to see some revenue improvement notably from continued growth from adjacencies but continued to monitor macro trends. We currently expect the rate of reinvestment to be modestly higher in the second half as we continue to focus on growth initiatives. At Book Publishing, as mentioned last quarter, we hope to see further profit improvement in fiscal twenty twenty five albeit likely at a much more modest rate due to difficult prior year comparisons and quarter three will be impacted by facing a front list releases. At News Media, while we expect the segment to continue to benefit from lower talk TV costs, together with savings associated with the new commercial printing joint venture DMG in The UK advertising conditions remain difficult with limited visibility and coupled with ForEx headwinds we anticipate a more challenging second half.

As mentioned last quarter, we expect other segment costs to be higher than last year. Including ongoing AI and related legal costs. With that, let me hand it over to the operator.

Thank you.

We'll now start the Q and A session. Please limit your questions to one per participant. If you can join via the Zoom application, please use the raise hand functionality to ask a question. If you've joined via the audio line, press star 9 to raise your hand and star 6 to unmute once called upon. Questions will be answered in the order they are received. We'll now pause for a moment to assemble the queue. Okay. Our first question will come from David Karnovsky with JPMorgan. Please unmute your line and ask your question.

Hi. Thank you. Just maybe on the Foxtel deal, wanted to see if you could discuss a bit the structure here and reasoning to take this own equity as payment and maybe your view on the asset. And then following this, Robert, it would be great to get your updated view on the overall News Corp structure. And can you say at this point if you're still engaged in an overall strategic review?

David, obviously, the deal is subject usual regulatory approvals, in particular, out of the foreign investment Review Board in ACC in Australia, and we're providing whatever information is important agencies require We do expect that the deal will formally close this fiscal But I should emphasize that we will be close partners with this zone News team we've found to be particularly impressive. And I think it's fair to say that they've found the Fox to be particularly impressive. Essentially, you have the marriage of two world class companies and together, there'll be than the sum of their parts. As for structural reform, the Foxtel deal itself should reinforce the sense that we are constantly reviewing our portfolio. And that deal is eloquent testimony that we don't just review, we act decisively. We are conscious of maximizing returns for our shareholders and the improved returns have certainly come from buttressing of bolstering our core pillars and that is reflected in our share price, not entirely, obviously, obviously, but somewhat. I'm sure you're aware that our shares have risen more than 26% the past six months.

Thank you.

Dave. Luke, we will take our next question. Our next question will come from Kane Han with Goldman Sachs.

Please unmute and ask your question. [indiscernible] Maybe just a comments in the introduction, Robert, around Dow Jones earnings growth accelerating in the second half despite the expectations for more OpEx growth in the second half.

Talk a little bit more about what's driving that Is that the Factiva impact dropping away, improving subscriber trends you called out of the journal? Just help us understand what gives you the confidence in the improving second half?

Well, Ken, I think it's a combination of two things, the Dow Jones circulation News, the total subs were up 9% at around $5,900,000 Digital only up 13%. And we're very focused there on average revenue per subscriber [indiscernible] And that was the reflected in the overall 3% increase in circulation News Despite a continuing fall in print circulation revenue to be candid, So digital circ revenues were up 8%. And the Dow Jones team is generally confident that the phasing of subscribers from discounted entry level offers to more standard pricing is proceeding well and we will see that reflected in ensuing months. And then at PIB, Clearly, risk and compliance and Dow Jones Energy are are both faring well, and we have full confidence in them.

If I could just add to that, Robert. I mean, Kain, one of the things we need to remember is that the second half generally tends to be the time when we have more additions in any case. So there is a seasonality piece there as well, which will help.

Thank you, Kane. Luke, we'll take our next question, please.

Our next question will come from Jason Bazinet with Citi. Please unmute and ask your question.

Just had a question for Mr. Thompson. Given that it's a a year end of the Spotify deal, can you just remind us what you are hoping to achieve with that agreement. And then based on consumer behavior, sort of a year end what lessons, if any, of you learned so far? Jason, we're very proud of the partnership with Spotify, which I think itself has changed the audio book market and the broad trends there remain in place now. The audience is expanding and audio overall was 13% higher and dare I say even the ebooks were 6% higher.

After a couple of years of relatively sluggish sales. I think what we are seeing is a change in consumer behavior. And adaptation by both Spotify and Audible for that increased audience. And dare I say, we are the beneficiaries of that.

Thank you. Jason, Luke, we will take our next question please. Next question will come from Entre Rakhovsky with Evans and Partners News.

Please unmute and ask your question.

Hi, Robert.

Hi, Lavinia.

My question is just around the expected use of the proceeds from the Foxtel sale I appreciate the transaction is yet to close, but you'll get some money as part of the shareholder loan repayment So do you expect that presents some scope for capital management or is your intention to reinvest those proceeds? And I don't know as part of that answer, if you can give us any sort of broad guidance on where you expect CapEx to trend going forward post completion of the sale? Thank you. [indiscernible] absolutely focused on generating maximum value long term for our shareholders. We have a $1,000,000,000 buyback provision in place and you can see from our disclosures that that buyback is well underway well as that, we have the dividend payments. So it's extremely conscious of shareholder returns and returning to shareholders. In last fiscal, we returned 70% of our available free cash flow through the buyback. And And clearly, the significant increase in our free cash flow in recent years has given us up optionality and the upgrades to investment grade by both Moody's and Essen P Global in recent days reflect that reality. But we will go on being conscious of our duty to shareholders, but we do so from a position of strength.

Thank you. And Joe, Luke, we will take our next question please.

Our next question will come from David Joyce with Seaport Research. Please unmute and ask your question.

Thank you.

I appreciated your outlook for the back half of the year. Could you provide some more color though on the timing of when we would be lapping the price increases at Dow Jones on consumer and professional services side? And also when you would expect the new products to be coming online at the REA and contributing there? And then finally on book publishing, if you have more of an outlook over the next few quarters of significant titles that would be released, that would be drivers. Thank you.

Well, I think we've given as much guidance as we can on the likely trajectory for for Dow Jones and pricing. Essentially, what you are seeing, by the way, there is the increase in digital and also which led to 81% of our revenues are being generated [indiscernible] 78% last year. And secondly, the continuing influence of through the expansion of the PIP business relative to the entire business. So and the impact of that higher margin business on our profitability, the is quite obvious. The margin at Dow Jones rose from 27.9% to 29%. And there's every reason to believe in coming months and quarters and years, dare I say, that as PIB takes a larger share of revenue, that margin will continue to expand.

As for the books business, we [indiscernible] a a full roster as always at HarperCollins, the books that Lavinia and I mentioned, but also we have a very strong backlist there, which is some the value of which is sometimes underestimated by certain analysts. And through the years, we have been working diligently on bolstering that back list, which which tends to be more profitable obviously enough. And it's not insignificant that the the backlist share rose from 60% to 61% of total sales in the most recent quarter. That backlist is a platform for future growth.

Let me just add to that, just to on the on Harper.

Mean, what we have guided to in the second half is that growth will be moderating because we've had more phasing of this off the front list into the first half of the year So that's just something to keep in mind.

Thank you, David. Luke, we will take our next question. [indiscernible] Our next question will come from the line of Greg Huber with Huber Research.

Please unmute and ask your question.

Thank you. Robert, just wanted to ask you, As you know, you guys went public with your thoughts on optimizing the structure of the company two November's ago. Lot of people applaud you for what you did with Fox Teller. Simplifying the company from that angle. I'm just curious see if the gentleman was asking as well. Is there more to go here to simplify the company? I know part of it's kind of maybe gummed up a little bit here just given the tough U. S. Mortgage market. If you were ever going to do anything with realtor.com, nobody would want you to potentially sell that in a lousy market where you would not optimize the value of it. So forth. But putting that issue aside, could we maybe potentially get another announcement here before maybe we get to the two year I just want to get sort of a sense here what we're playing with here. Is there more to come here on the optimizing the company? Thank you.

Craig, we are constantly reviewing the structure of the company. And look, it is fair to say that the Foxtel deal itself is hard evidence of that. That our consideration of the appropriate structure does not end with that significant decision. But there is no doubt that we have a collection of very valuable assets. And I certainly wouldn't underestimate the value of realtor I mean, when you look at the new growth areas there, so seller related revenues, new homes and rentals, all of which have been a focus of investment by Damien and the team. Those revenues rose 51% in the quarter compared to a year earlier. And just one other point worth highlighting at Realtor, and this is according to a com score, so it's independent, not one of those wonderful internal metrics used by some. Realtor has a significantly higher rate of visits per unique page visits, per unique visits News Zillow and that's valuable. That shows that we have a quality audience. These are drive bys. These are not drive bys. I should say. These are customers parking the car in a garage. Thank you, Craig.

Luke, we will take our next question please. Our next question comes from the line of Brian Han with Morningstar. Please unmute and ask your question. Robert, just to be clear on Dow Jones, your expectation that year on year growth will accelerate in the second half Were you referring to revenue growth?

All earnings growth And are there any plans to increase investment? In Dow Jones going forward? Whether in marketing or technology, Thanks.

We're always looking for opportunities for Dow Jones. And you can see from the investments, dare I say, Sage investments made in recent years, which are now coming to fruition that If there's an opportunity at a reasonable price, we'll pursue it. We see two areas of potential improvement from the Dow Jones team. One, we're coming into the Lavanya mentioned, of higher sales. And secondly, we are also seeing that the dynamic pricing system adopted by the team starting to bring us benefits. So the combination of both. Thank you. Brian, Luke, we will take our next question please.

Yes. And as a reminder, if you'd like to ask a question, please use the raise hand feature on your screen. Our next question will come from Evan Carrasas with UBS please unmute and ask your question.

Okay. Yes, morning. Can I just ask one around the strong Dow Jones margin expansion you're delivering? Maybe or sorry, you talked about a couple of minutes ago. Can you just first give an idea of the margin headwind from the Factiva dispute to help us get, I guess, a more normalized margin? And then you can as well, is this expectation of the 100 ish basis points quarterly margin expansion, is that around the level you'd be expecting for the rest of the year? Or I guess going forward just given the multiple moving parts happening there in the second half that you've spoken to? [indiscernible] We're not I'm not going to be giving margin guidance for Dow Jones for the second half of the year, but to kind of talk about what the impact of Factiva was, just on from a revenue perspective, Factiva had more than a 300 basis point impact on revenue. And so you can kind of do the math there. On what that may have impacted from a margin perspective. Look, in the second half, we will continue to be disciplined on cost. We will continue to work towards improving profitability and really focused on monetizing all the subscriptions that we added last year And we should expect to continue to see upside in margins.

Thank you. Evan, Luke, we will take our next question.

At this time, we have no further questions. I will hand the call over to Michael Florin for closing remarks.

Great.

Well, thank you all for participating. We look forward to speaking to you soon. Have a wonderful day. Take care.