Good day, and welcome to the News Corp Q1 fiscal 2020 conference call. Today's conference is being recorded. Media will be on a listen-only basis. At this time, I would like to turn the conference over to Michael Florin. Please go ahead.
Thank you very much, Eduardo. Hello, everyone, and welcome to News Corp's fiscal first quarter of 2020 earnings call. We issued our earnings press release about an hour ago and it's now posted on our website at newscorp.com. On the call today are Robert Thomson, Chief Executive, and Susan Panuccio, 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 Corp's Form 10-K 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 our earnings release. With that, I'll pass it over to Robert Thomson for some opening comments.
Thanks, Mike. In the first quarter of fiscal 2020, News Corp showed strong growth at Dow Jones and higher revenues at Move, operator of realtor.com. The company also faced challenges from pronounced currency headwinds, a sluggish Australian economy, in particular, a struggling Australian property market, as well as difficult comparisons with a prior year one-time revenue item and a non-cash impairment charge in this quarter. For the quarter, the company reported total revenues of $2.34 billion, with total segment EBITDA of $221 million. This represents a decline of 7% in revenues and 38% in profitability versus the prior year. Of the revenue decline, 3% was directly attributable to currency and 2% to a one-time cash payment last year by Tabcorp in the U.K. Before getting into the finer details of the quarter by segment, I want to address a significant development that bodes well for our future prospects.
There has been a fundamental change in the content landscape. For over a decade, News Corp has led the international debate in seeking fair returns for our high-quality content from the digital platforms. Clearly, the dominant digital platforms are under intense and continuing regulatory scrutiny on issues such as privacy and an opaque advertising market. There has, however, been a substantial development with Facebook's decision to pay a significant premium for our premium journalism at the WSJ and beyond. This decision begins to change the content equation, and we expect a positive impact on financials at our news and information services segment over the long term, beginning this fiscal year. The Facebook deal complements the agreement we reached with Apple in March when The Wall Street Journal became a launch partner for Apple News+, which expanded the reach of the Journal and its journalism to new audiences.
Our brands and our content obviously benefit from the marketing reach and prowess of a partner which has nearly 189 million phones in the U.S. and 1.4 billion devices globally. We expect this sectoral shift in the value of digital content to have significant implications for our investors and our bottom line. Let us be clear, these unprecedented changes in the publishing industry would not have been achieved without the determination of Rupert and Lachlan Murdoch and the unwavering support of the News Corp board, which has taken a long-term, principled stand on the need to change the digital ecosystem. Other publishers around the world should feel free to send us a commission for services rendered. Another development worth highlighting is the ongoing simplification of News Corp.
As you are aware, we have put our News America Marketing business under strategic review and are in discussions regarding a possible sale of that business. We expect to update you in due course. Consistent with that theme of simplification, we have our Unruly ad tech business under strategic view and are also in discussions about a potential sale. We have learned much from the very talented team at Unruly, and those lessons will inform our ad business for many, many years to come. With simplification being an ongoing process, the company will continue to review its structure with the aim of bringing extra focus to our key assets, allowing investors to have a far clearer view of their prospects. Let me turn to the News and Information Services segment, in which Dow Jones had a strong quarter, with increased revenues and greater profitability year-over-year.
Wall Street Journal subscriptions grew 8%. We have crossed the 70% threshold for the number of digital-only subscribers. Important to note, we currently do not include readers of Apple News+ in that number. It certainly does not fully capture the number of readers who are now paying for access to the journal. Advertising revenue at Dow Jones grew 2% in the quarter, led notably by strong digital ad performance at wsj.com, which grew 13%, as compared to a decline at The New York Times. We also saw stronger circulation revenue growth and increasing profitability as compared to The New York Times. Dow Jones' Professional Information Business continued to thrive with the burgeoning risk and compliance sector, in particular, growing 25% year-over-year.
With many companies under intensifying regulatory scrutiny, the imperative to minimize risk and maximize compliance remains a burgeoning source of business. Overall, our professional information business represents a pronounced distinguishing advantage over media competitors and provides multiple opportunities for us to upsell specialist content to companies, professional investors, and individual investors who actively manage their portfolios. Barron's Group continued to report strong traffic growth in Q1, with total unique users up 27% year-over-year, driven by MarketWatch and Barron's Online. Barron's subscribers grew 7% to 587,000, while MarketWatch Q1 revenue was its strongest quarterly revenue performance ever. In the U.K., digital subscribers at The Times and Sunday Times grew 19% to 312,000. Advertising in local currency was up for the first time since Q3 of financial year 2018, as digital growth more than offset modest print declines.
Digital advertising growth at The Sun accelerated from the prior quarter rate and benefited from a growing audience and higher yield, with approximately 129 global monthly unique users in September 2019. Meanwhile, at Wireless, the October RAJAR results show that the reach of Wireless' stations grew 21% year-over-year, with a 26% increase in listening hours. Propelled by Chris Evans joining the network, Virgin Radio experienced a 300% increase in reach and a 500% jump in listening hours. Meanwhile, talkSPORT had a 20% increase in digital listening, thanks in part to the new Premier League rights, which drove Saturday listening up 120% year-over-year. In Australia, there were harsh economic conditions that affected all of our businesses, including HarperCollins. In media, we continue to execute on our digital strategy, with the mastheads reaching more than 542,000 digital subscribers, representing 23% year-over-year growth.
At The Australian, 65% of subscribers were digital, showing that a subscription sensibility is indeed evolving and more people expect to pay more for digital products. Circulation revenue was also lifted by cover price increases at our metropolitan mastheads. We took the bold step of sharply increasing the cover price of the New York Post in June, there has been a 12% year-over-year increase in circulation revenue. Advertising also rose at a similar rate. It is worth noting that more than 70% of The Post's advertising revenues in the quarter were digital. Turning to subscription video services, total subscribers at Foxtel grew 6% year-over-year, despite the difficult conditions in Australia. The latest number of paying Kayo subscribers as of November 5, reached 402,000, with total subscribers at 443,000. This is less than a year after its launch.
With the Rugby World Cup ending last week, Kayo is now preparing for the seasonal shift to cricket and other summer sports in Australia. Kayo customers continue to be highly engaged, with over 75% of subscribers using the product each and every week. Kayo is a premium streaming service and shows that a far larger number of Australians are prepared to pay for content than had previously been presumed. Given that we have already acquired the sports rights, it's another important opportunity to monetize those rights without undermining the core broadcast offering. During this quarter, Foxtel has continued to make significant enhancements to its product offering. The company began rolling out a new user interface to more than 1.1 million iQ3 and iQ4 set-top boxes. Since the end of September, Foxtel has also begun a major channel refresh for movies and entertainment, with a focus on new Fox-branded channels.
Foxtel and NBCUniversal announced yesterday a long-term deal that will provide a variety of programming for Foxtel's broadcast on demand and streaming platforms, including Universal Studios movies, along with popular television series and other content. With the simplification of the Foxtel product offering having been completed, a new customer loyalty program called Foxtel First has been launched. We are all hopeful that these initiatives will help strengthen the product and reduce churn, which in the core Foxtel retail channel, accounting for a majority of broadcast subscribers, excluding wholesale partnerships, actually improved from 13.6% to 12.2%. In book publishing, results were influenced by an invidious comparison to the prior year, when we saw 42% year-over-year EBITDA growth in the first quarter of fiscal 2019, thanks to the remarkable success of the Rachel Hollis and Mark Manson books.
There are a number of important works in the HarperCollins pipeline, including a cookbook from Ree Drummond, author of the "Pioneer Woman" series in the current quarter, as well as "The Andromeda Evolution" by Michael Crichton, released next Tuesday. Other books in the second half of the fiscal year include a cookbook from Joanna Gaines of Magnolia Series fame, and in the U.K., a work by the best-selling children's author, David Walliams. We also expect to see benefits from the release of the film version of A.J. Finn's "Woman in the Window," HarperCollins also announced that it will be publishing back the candid, compelling memoir by Tiger Woods. Turning now to Digital & Real Estate Services.
REA results were challenged due to soft listing volumes in Australia. Though average auction clearance rates have returned to the levels seen before the market correction, over 80% in Melbourne and Sydney, and there has been some improvement in the month-on-month listing environment. With evidence of a gradual market recovery, we do expect enhancements in revenue in the second half of this fiscal year. Move Inc, operator of realtor.com, had a robust quarter, and we have reason to be optimistic over its prospects, thanks to signs of improving health in the U.S. housing market. Existing home sales are on the rise, and there has been rapid audience growth at realtor.com, where there was an 18% year-over-year increase in traffic in the quarter. Based on the most recent Comscore data, realtor.com's traffic is clearly growing significantly faster than that of our nearest competitor.
In addition, we are pleased with the ongoing integration of Opcity, a business that is helping realtor.com become even more connected to consumers and to realtors, who are provided with higher quality, refined leads that we expect to monetize in adjacencies such as mortgages. We are not entering the house-flipping, distress sale business, but want to offer vendors as many potential purchasers as possible. The more competition for a house, the higher the price for the seller. While we have been in a period of reinvestment at Move due to the Opcity acquisition, we are seeing the benefits of that commitment with improving financials, and that will accelerate in the second half. For News Corp, as the year unfolds, the simplification of our structure will continue, and we expect to see further benefits from the shift in the balance of power between curators of content and the digital distributors.
Investors in News Corp should be the beneficiaries of that fundamental transformation. Now, for further insight, we will turn to Susan.
Thank you, Robert. Turning to the financials, fiscal 2020 first quarter total revenues were approximately $2.3 billion, down 7%. Total segment EBITDA was $221 million, down 38% versus the prior year. The results were impacted by last year's one-time benefit related to the exit of the partnerships of Sun Bets in the U.K., coupled with continued currency headwinds and challenging prior year comparisons at HarperCollins. On an adjusted basis, which excludes the impact of acquisitions and divestitures, currency fluctuations, and the other items disclosed in our release, revenues fell 4%. Total segment EBITDA decreased 30%. Net loss for the quarter was $211 million, compared to net income of $128 million in the prior year, reflecting a $273 million of non-cash impairment charges, primarily at News America Marketing.
For the quarter, we reported a loss per share of $0.39, as compared to earnings per share of $0.17 in the prior year. Adjusted earnings per share were $0.04 in the quarter versus $0.17 in the prior year. Turning now to the individual operating segments. In news and information services, revenues for the quarter were over $1.1 billion, down approximately 8% versus the prior year. Currency had a $35 million or 3% negative impact. Digital revenues for Dow Jones and the newspaper mastheads represented 38% of the combined revenues. Approximately 34% of the segment's revenues were digital, up from 33% in the prior year, which included the one-time Tabcorp payment. Advertising revenues for the segment were down 8% in the quarter versus the prior year, with approximately $15 million or 3% due to negative currency fluctuations. Performance was stable versus the prior quarter. Right.
Improvements at Dow Jones and News UK, absent currency impacts, were offset by declines at News America Marketing and News Australia. Circulation and subscription revenues rose 1% versus the prior year, despite a $15 million or 3% negative impact from foreign currency. Growth was again led by Dow Jones. Segment EBITDA for the quarter was $56 million, down from $109 million, with the decline due primarily to the absence of the net benefit related to the exit of the partnerships for Sun Bets in the U.K. last year. We reclassified approximately $7 million of costs in the first quarter of fiscal 2019 from the other segment to the news and information services segment.
The costs are mainly related to initiatives including News IQ, our global programmatic asset, and some shared technology services that directly benefit the news and information services segment as part of our ongoing efforts to leverage our global scale to lower costs. I will now talk through some segment highlights. At Dow Jones, consumer circulation revenues in the first quarter remained very healthy, growing 6%, benefiting from 17% growth in digital-only paid subscribers to The Wall Street Journal to approximately 1.9 million, as well as subscription price increases. Digital paid subscribers accounted for 71% of the total subscriber base at The Wall Street Journal, up from 65% last year. We see a big opportunity to scale The Wall Street Journal, both directly and through valuable third-party relationships, as Robert mentioned. As a result, we expect to see incremental revenues from these partnerships this year.
Total subscribers in the quarter for Dow Jones Consumer Products, which also includes Barron's and Financial News in the U.K., reached approximately 3.3 million, again posting record levels. Of that, digital-only subscribers rose 20% versus the prior year to almost 2.3 million subscribers. We remain optimistic about our professional information business, which accounted for 29% of Dow Jones revenues this quarter. Key growth engine continues to be in risk and compliance, which accelerated its revenue growth to 25% in the quarter compared to the prior quarter. Overall, our professional information business grew a robust 8% this quarter. Advertising revenues at Dow Jones in the quarter rose 2%, an improvement from the fiscal fourth quarter rate, led by digital growth with a relatively stable print performance. Digital advertising accounted for 32% of total Dow Jones advertising, compared to 37% last year.
We continue to balance healthy revenue growth at Dow Jones with reinvestment, which is leading to ongoing profit growth. Elsewhere across our news portfolio, advertising conditions were mixed. News U.K.'s advertising revenues were flat on a reported basis and up 6% in local currency, representing the first year-over-year increase in local currency since the third quarter of fiscal 2018. The U.K. showed notable growth in digital, particularly at "The Sun," which is growing in both audience and engagement. Advertising conditions in Australia were more challenged, notably in print, with advertising revenues down 13% on a reported basis and down 8% in local currency. Digital growth helped mitigate print declines with continued growth from News Xtend, our small-medium business initiatives, and at news.com.au. On circulation, our digital paid subscribers again grew at an impressive rate. Digital subscribers rose 19% at "The Times" and "The Sunday Times" and 22% at News Corp Australia.
The increase in digital subscribers, along with cover price increases at both News UK and News Australia, helped mitigate print volume declines and currency headwinds. Finally, at News America Marketing, revenues fell 10%, driven by weakness in freestanding insert products, given the ongoing digital migration. Partially offset by growth in in-store product revenue, which accounted for roughly half of the overall revenue. Turning to the Subscription Video Services segment, revenues for the quarter were $514 million, down 9%, versus $565 million in the prior year, of which $34 million, or 6%, was due to the negative impact from foreign currency. Broadcast revenue trends were relatively similar to the prior quarter, with the revenue decline driven by a lower broadcast subscriber base and changes to the broadcast subscriber package mix. The revenue decline was partially offset by increased revenue contributions from Kayo and Foxtel Now.
Importantly, as we look at a core driver of the business, TV subscription revenue, which includes both broadcast and OTT revenue, excluding the impact of currency, revenue growth from OTT products almost offset broadcast declines in the quarter, which will be key to the stability of the business. Segment EBITDA in the quarter was $81 million, down 28% with the prior year, which in addition to the revenue trends, was also impacted by $16 million of costs related to domestic cricket rights, which we didn't have in the prior year, and $14 million related to the non-cash accelerated amortization of certain of our entertainment programming costs, as we highlighted last quarter. We continue to expect approximately $30 million-$35 million impact from the accelerated amortization for the full year, with a greater impact in the first half of the year.
Other costs, notably in overheads, were lower this quarter as the team is focused on rightsizing the cost base. We continue to expect full-year capital expenditures to be approximately 20% lower than the prior year and for the cash flow generation to improve. Turning to the KPIs, Foxtel's closing paid subscriber base was approximately 3.1 million as of September 30th, with volume growing 6% versus the prior year, driven by the launch of Kayo last November. Of that subscriber base, over 2.3 million of the total closing subscribers were broadcast and commercial subscribers, and the remainder consisted of Kayo and Foxtel Now. Kayo-paying subscribers grew to 364,000, up from 331,000 last quarter, or 12% of the total Foxtel subscriber base. Including trial of Kayo rose to 430,000 subscribers. We are seeing that customer activations are more pronounced around big events.
The first quarter had less exclusive content, particularly following the Cricket World Cup. We have seen notably stronger ads with the start of the Rugby World Cup, which began in late September. As of November the 5th, Kayo-paying subscribers had increased to approximately 402,000. We continue to see that Kayo subscribers are incremental to the subscriber base, with very little cannibalization from the core broadcast business. Paying subscribers for Foxtel Now were approximately 375,000, down from 446,000 last quarter following the conclusion of the "Game of Thrones," but still up from the prior year and have seen an improvement in ARPU from both the last quarter and the prior year. In addition, Foxtel is also planning a new entertainment product, which will leverage the Kayo platform with the commercial launch anticipated later in this fiscal year.
In the first quarter, broadcast churn was 14.4% versus 12.9% in the prior year. Down from 14.7% in Q4, reflecting continued focus on churn management in the Foxtel direct channel and higher penetration of the iQ4 set-top boxes. As a reminder, lower ARPU customers on expiring contracts from the past 12-24 months, compounded by a price rise, is resulting in higher churn versus the prior year. Churn from platinum and sports tiers remain materially lower than the base. Broadcast ARPU grew 2% to about AUD 78 per month. We expect to complete the refinancing of a significant portion of Foxtel debt in the coming weeks, which will include a package of bank refinancing, third-party financing, and additional shareholder funding.
As part of the refinancing, News Corp has contributed an additional AUD 200 million loan, and the new financing will extend maturities for at least three years, and importantly, provide Foxtel with ample liquidity and flexibility to execute on its strategy. At book publishing, HarperCollins faced an unusually difficult comparison to the prior year due to the success of Rachel Hollis' "Girl, Wash Your Face," Angie Thomas' "The Hate U Give," and Mark Manson's "Subtle Art." As a result, revenues for the quarter fell 3% to $405 million, and segment EBITDA fell to $49 million. Notable releases this quarter include Daniel Silva's "New Girl," Ann Patchett's "The Dutch House," Karin Slaughter's "The Last Widow," Demi Moore's "Inside Out," and Ant Middleton's "The Fear Bubble." Digital revenues declined 5% and represented 22% of consumer revenues, also impacted by the year-ago comparison.
At the Digital Real Estate Services segment, revenues were down 7% to $272 million, of which $10 million or 3% was due to the negative impact from foreign currency. On an adjusted basis, revenues declined 5%. REA Group revenues were down 14% and down 8% in local currency, as higher yield and improved product mix was more than offset by an overall 15% year-over-year decline in new listing volume during the quarter. Developer revenues were also down on the back of a 26% decline in new project developments. Revenue decline was also impacted by the extended duration of premier all listings from 45 to 60 days, which increased the revenue deferral for the period. Please refer to REA's earnings release and their conference call that just concluded for additional details and comments on their outlook.
Move revenues rose 4% to $123 million versus the prior year, with real estate revenues growing 11%, which is an improvement from the fourth quarter rate. The increase in real estate revenues, which represented 80% of total revenues, was led by a higher contribution from Opcity, combined with an improvement in lead volume and audience. This is in the context of the U.S. housing market showing signs of improvement, with existing home sales up low single digits in the quarter compared to the prior year. As I mentioned last quarter, we began live testing a performance-based only model in over a dozen markets starting on May 1st to analyze the impact and scalability of the platform. The test also allows us to better control the consumer experience and the transaction. Although it is still relatively early in the testing, every single one of the core metrics has gone up materially.
Leads, meeting rates, home values, and close rates are all trending in the right direction. We are very encouraged by the results and have continued to allocate more leads to the Opcity model, which will allow greater opportunities to further extend into ancillary revenues. On audience, we saw an acceleration in audience growth versus the fourth quarter growth rate, with average monthly unique users at realtor.com reaching over 71 million, rising 18% versus the prior year, together with a notable pickup in both page views and time spent. Segment EBITDA fell 22% to $82 million due to REA revenue declines and investment at Move due to Opcity. Adjusted segment EBITDA declined just 2%. Other costs increased to $47 million from $37 million.
The majority of the increase is related to higher equity comp due to the performance of existing schemes and stock appreciation since the grant date, as well as the phasing of certain strategic initiatives. Most importantly, we do not expect this increase to be reflective of the full year. I would now like to talk about some themes in the upcoming quarter. At News and Information Services, advertising trends thus far remain similar to the prior quarter levels, although visibility remains limited. We continue to seek cost efficiencies, particularly in both the U.K. and Australia. Comparisons should ease now that we have moved past the Sun Bets benefit, and we expect to show improvements, particularly at our news brands. In subscription video services, we will anniversary the acquisition of the domestic cricket rights and cost trends should be more favorable. We will also lap the price increase from October last year.
In book publishing, as Robert mentioned, we're excited about the recent launch of Ree Drummond's "Pioneer Woman: The New Frontier," although we'll continue to face difficult comparisons as the prior year included Joanna Gaines' "Homebody" and strong backlist sales. Given the timing of the release schedule, we expect performance will be more second half weighted. At Digital Real Estate Services, we anticipate improvements at Move as we lap the Opcity acquisition, particularly in the second half. As noted on their release, REA expects revenue growth to be skewed towards the second half of the fiscal year. Please see their release for more details. With that, let me hand it over to the operator for Q&A.
Yes, of course. If you'd like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, press star one to pose a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. I'll take the first question from Kane Hannan at Goldman Sachs. Please go ahead.
Good morning, guys. Just that Dow Jones revenue growth of 6%. Can you give us a bit more color around the level of cost growth during the quarter to drive that growth? Then, I suppose some comments around the revenue quantum we should be expecting from those digital partnerships this year, sort of next year. Should we be expecting them to be material?
Well, look, I'll take the second bit of the question first, Kane. The Facebook deal is a big deal. It establishes a clear precedent of paying a premium for premium journalism. There are a couple of other initiatives that are notable. When you click on a headline in the Facebook News tab, you'll be taken to our site, so the story is not hosted by Facebook. That means that we're able to sell advertising directly, and we'll have a more lucrative flow of permission data. These were all essential preconditions for our assent, our agreement, and we'll have a long-term benefit on our accounts. The fact is that there'll be less provenance if there's not a premium for provenance. It's frankly clear that the revenue share flow had shifted dramatically from the creators to the distributors.
For us, commercially, there are two things that are meaningful and absolutely essential. Firstly, development of a subscription sensibility. There has to be more of a propensity to pay. Thankfully, Facebook understood that priority. Secondly, the digital advertising market is dysfunctional. The so-called open market is a virtual monopoly. We've been very public about our concerns on that segment, which is in dire need of reform and is, thankfully, now under close scrutiny by 50 U.S. attorneys general.
Kane, just in relation to the cost, we saw about a 4% increase in cost for the quarter for Dow Jones. You should use that number as your proxy.
Thank you, Kane.
Okay. Thanks, guys.
Eduardo. Eduardo, we'll take our next question, please.
Yes. Just to confirm that your question has been answered, you may remove yourself from the queue by pressing star two. We'll now take the next question from Eric Pan at J.P. Morgan. Please go ahead.
Good morning, guys. Thank you for taking my question. You mentioned in your comments you're bringing extra focus on your key assets. Given the proposed sale of NAM, how should we think about the company's overall strategy going forward? Are you looking to unlock the value of the assets via monetization, or could you be looking to beef up your existing businesses with acquisitions?
Eric, simplification is indeed an ongoing process, and it doesn't stop at News America Marketing and Unruly. We're very cognizant that the company trades at a discount of the sum of the parts, and we're seeking to rectify that situation and maximize value for all shareholders. It's fair to say that the institutional introspection will continue apace.
Thank you, Eric. Eduardo, we'll take our next question, please.
Yes. Our next question comes from Entcho Raykovski at Credit Suisse. Please go ahead.
Hi, Robert. Hi, Susan. Just a couple from me related to SVOD. Firstly, Susan, I want to clarify your comments around the next quarter. You said you'd lapped the increase in domestic cricket rights. Should we expect any increase in the cost of the cricket heading into Q2? Then just secondly, your commentary around the launch of an entertainment-only offering in SVOD, do you expect any additional costs associated with that offering, or do you think that you can pretty effectively utilize your existing rights and offer streaming products? Then just related to that, sorry to kind of carry on with this, what is your rationale for it, given that it feels like it is a pretty crowded space in streaming services in Australia?
I'll take maybe the first two, and Robert can take the last one, Entcho, if that's okay. Just in relation to cricket, we would expect to see very modest increases over the course of the year. The bulk of those costs have come through in Q1. I think it's important to note when we think about the cost base, the largest increase that's come through is because of the non-cash amortization in relation to those entertainment expenses. Over the full year, absent those costs, we would expect the whole cost base to be relatively stable. It is important to note that the team down in Australia are continuing to focus on rightsizing their cost base and are continuing to look for opportunities as they move forward. In relation to [Aeries], we are looking to launch that towards the back half of this particular fiscal year.
We're not expecting to see significant incremental cost, to your point. We do have a lot of the content covered within existing deals. We will, of course, have marketing costs as we scale up that product, but the actual incremental costs that we'd expect to see within the year are going to be minimal.
If I could just supplement Susan's comments. It will obviously be based on the Kayo distribution platform. Much of the engineering there has already been done. I think when you speak of streaming, the salient point to note about Foxtel is the rapid growth of Kayo from nothing a year ago to 402,000 paying customers now and another 443,000 in total. This is not a service that costs $6.99 a month. It's $25 a month. Given the view of feedback and satisfaction, there's obviously some longer-term elasticity in that price. When you see the sluggishness in the Australian economy in advertising and real estate, which has obviously had an impact on our earnings, the results are even more impressive.
Thank you, Entcho. Eduardo, we'll take our next question, please.
Yes. We'll now take the next question from Craig Huber at Huber Research Partners. Please go ahead.
Craig?
Mr. Huber, your line is open. All right.
Eduardo?
We'll take the next question from Fraser McLeish at MST.
Hi, Robert. I'm interested in your comments up front, you talking about giving us a clearer view of the assets and the value. Are you willing to just give us a little bit more insight into what you're meaning there? I assume you're talking about The Wall Street Journal and timing of that. Do we now have to wait until the next financial year for that? That's my first question. Secondly, just on Move, which the margins, you've got to do a little bit of work, obviously, to back them out because you don't report them. Look, they're around about that sort of 10% level, and they've sort of been stubbornly at that level for a little while. Is it structurally just a low-margin industry in the U.S. because they're obviously very low margins relative to similar businesses around the world?
Do you think we can really see some margin improvement there over the next few years? Thanks.
On your first question, we really can't go into detail about what simplification means in the longer term. What it does mean at the moment is News America Marketing and Unruly, which are under strategic review. As I said, that strategic review does not stop with those two properties, and we are very conscious of the need to highlight the value of the company and provide more transparency for investors. As for Move, both short, medium, and long term, we believe that realtor.com is a tremendous property. You can see that the growth in audience is far superior to that at Zillow at the moment. If you take the independent Comscore figures from September, the unique users at realtor.com were up 17%, while Zillow grew at only two percent, and Trulia actually shrank by two percent.
The divergence was even more marked on desktop, with 10% of growth at realtor and Zillow down by 12% year-on-year. We're at a very early stage of the evolution of the digital real estate market in the U.S., we think as it evolves, those margins will surely increase.
Fraser, I think I'll just add to that part of the reason and the rationale for acquiring Opcity was to accelerate that revenue growth going forward and provide an opportunity for margin expansion via ancillary revenues and different services. We would expect to see for the balance of this year and over the full year that revenue and EBITDA will continue to grow within that business.
Thanks, Fraser. Eduardo, we'll take our next question.
All right, we'll now take our next question from Craig Huber at Huber Research Partners once again.
Yes. Hi, can you hear me this time?
Yes, we can hear you.
Yep, we can hear you loud and clear.
Okay, good. I have no idea what happened there. Let's have two questions. My housekeeping question, circulation revenue across Dow Jones, Australia, and the U.K. with or without currency. Did you give that? Maybe I missed it, but that's my first question. My second question, Robert, you mentioned, I think a lot of people agree with you on this, that there's two large monopolies out there on the digital advertising front. I'd like to hear from you, if you could just expand upon this. What do you think the solution is on that front?
Craig, just in relation to your housekeeping question. Circulation at Dow Jones was up 6%. In the U.K. it was flat, but in reported numbers down 5%, and in Australia it was down 2%, in local currency reported down 8%.
Craig, obviously the tech topography is evolving very quickly. If you think back even 12 months ago, the prospect of Facebook paying for content, a carriage fee, as we called it, in fact, Rupert was the first to cite that as a need. The prospect seemed remote. It's now real. What we're finding generally in our discussion with the digital platforms is that they have indeed adopted a new approach. They realize that, for various reasons, that their past policies were unsustainable. As I made clear to you, it's not just about paying a premium for premium journalism. It is also about sorting out what is an opaque advertising market. There's no doubt that the regulatory pressure in that area is only going to increase.
A consequence of that will, I suspect, be that, as we're already seeing, more advertisers understand how dysfunctional that market is and seek association with high-quality content, and we will undoubtedly be a beneficiary of that, given the excellent journalism that we have, not only in this country but around the world.
Thank you, Craig. Eduardo, we'll take our next question.
Yes. Once again, if you'd like to ask a question, would you please press star one on your telephone keypad. We'll now just pause for just a moment. It appears there are no further questions at this time. I'd like to turn the conference back to Michael Florin for any additional closing remarks.
Great. Thank you, Eduardo. Thank you for all participating. We look forward to talking to you soon. Have a great day.
This now concludes today's call. Thank you for your participation. You may now disconnect.