Good day, everyone, and welcome to the News Corp First Quarter Fiscal Year 20 15 Earnings Conference. As a reminder, today's presentation is being recorded. Members of the media are invited on a listen only basis. At this time, I would like to turn the conference over to Mike Florin, Senior Vice President and Head of Investor Relations.
Please go ahead, sir.
Thank you very much, operator. Hello, everyone, and welcome to News Corp's fiscal Q1 2015 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 Thompson, Chief Executive and Bedi Singh, the Chief Financial Officer. 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 Corp's Form 10 Q for the 3 months ended September 30, 2014 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 may 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 Thompson for some opening comments.
Thank you, Mike. As the results you've seen today reflect, we are off to a resounding start in our 2nd fiscal year as the new news call. Our revenues, segment EBITDA, free cash flow and earnings per share were all up from the prior year. Our broader goal of globalization and digitization is proceeding apace with passion and purpose as is the ongoing transition of our newspapers in the U. S, U.
K. And Australia. Meanwhile, we are deepening our diverse portfolio with strategic acquisitions of significance. First, we closed the acquisition of Harlequin on August 1. The integration since the closing has been rapid and efficacious.
We are expanding HarperCollins' reach and that of our authors across Europe, Latin America and Asia. We are finally focused on driving cost savings with the goal to improve efficiency while delivering high quality content across multiple platforms and markets. And we are taking steps to leverage and monetize the extensive Harlequin back catalog. 2nd, we announced along with REA Group in Australia plans to acquire Move, home of realtor.com, expanding our real estate footprint in the large, but still nascent U. S.
Digital property marketplace. This is a transforming acquisition for the new news, one that we expect will have significant benefits for years to come and it clearly complements our existing platforms. I will expand on this theme later in my prologue. Meanwhile, we continue to enhance and refresh our digital offerings across the globe, including the launch of the new Wall Street Journal app, the development of Sun plus in the U. K.
And the refreshing of our Metro mastheads in Australia. There is increased collaboration across divisions, resulting in a more coherent digital strategy, more creative products and more compelling offerings for our customers. Looking now at the Q1 of fiscal year 2015, some general observations. The advertising headwinds in Australia have dissipated. The results for our businesses there showed real and hard won improvement in revenues and in EBITDA.
The green shoots appear to have taken root, but we will continue to invest in our sales teams and cherish our unique content. HarperCollins and REA again showed considerable strength, contributing much to both our top and bottom line, providing even more evidence that we can build a profitable future on these core pillars. We are seeing sequential improvements at the Dow Jones Professional Information Business and are confident that we are on the right track. Advertising at The Wall Street Journal has been robust in recent weeks with October showing solid gains versus the prior year, driven largely by print advertising. Long term trends remain difficult to predict, but we are happy with the contemporary trend.
We will, however, never allow ourselves the sin of complacency. News America marketing continues show strength in the in store category, highlighting the importance of point of purchase, which we believe has only become more valuable in a fragmenting media world. Freestanding inserts have been softer in recent weeks and will be a focus of particular attention in coming months. And Amplify has shown some gains as the business has started moving from the development stage to the all important sales stage. The coming school season will be crucial for the company as the sales cycle intensifies.
In general, progress is solid because we've had a cogent and consistent plan for NewsCall. We are purposefully executing on that strategy and continue to be diligent in confronting costs. Integral to that digital and global strategy has been the diversity and complementarity of our portfolio, which was distinctive from day 1 and has since been enhanced. This powerful portfolio has provided the opportunity for growth even with the ad market somewhat uncertain and visibility obscured. We have clearly come far over the past 15 months.
The acquisitions of Storyful, Harlequin and we expect imminently move. The retooling of Dow Jones Professional Information Business, the launch of a new curriculum at Amplify, the growth of REA in Australia and its expanding reach in Asia. However, these initiatives have not blurred our focus on driving improved operating efficiencies around the company and the world. We believe we are uniquely positioned for growth, particularly as technology advances our platform capabilities and stimulates the appetite for and access to the kind of premium compelling content we create and distribute. As for the quarter, the positive results underscore why we are humbly confident in executing our long term plan.
Today's numbers show the power of our provenance and our prospects. While newspapers are part of the foundation of the company and always will be, we are not just a newspaper publisher. We are a content and technology company with unique but complementary assets and a balanced revenue mix. Some high level numbers on which Beatty will elaborate eloquently. For the quarter, our reported revenues grew 4% to $2,200,000,000 a notable improvement since last quarter.
And reported total segment EBITDA grew by 21%. Importantly, our adjusted EBITDA grew 18% and free cash flow available to News Corp grew by $83,000,000 Among the highlights of the Q1 was Book Publishing. HarperCollins adjusted segment EBITDA, which excludes Harlequin and certain other items, grew over 20% this quarter, as the Divergent series continue to pay dividends and show the undoubted virtue of a blockbuster book. Meanwhile, we have never been more excited about digital real estate and REA's success this quarter helps to explain why. Revenue growth was 24% and segment EBITDA increased 30%.
The company's vast trove of expertise will be critical to the future growth of realtor.com in the U. S. And our other online properties. While we have been candid about the challenges facing our newspapers, we are seeing more encouraging trends in advertising and circulation revenue. We remain conscious that the sector is in transition, but believe that we have the scale and the skills to succeed.
To focus on a few brands, The Times in the U. K. Is delivering both volume growth and higher revenue per subscriber. Digital, which already accounts for nearly 1 third of paid sales has been growing at a double digit rate. At The Sun, we launched our tablet app integrated with sports clips and marketed with the Dream Team Fantasy League.
And while it's still early, we are pleased with the progress and the number of Sun plus members has increased markedly. We are still monitoring churn and we'll have formal metrics for you later this month. At The Wall Street Journal, we are now seeing momentum restored. As I mentioned, we've launched a new iPad app and added a subscriber membership program through WSJ Plus inspired by our success in London with The Times. Our team at The Journal under Will Lewis is working hard to grow subscriptions with simplified pricing, new products and enhancements and international expansion.
We just launched digitally Barron's Asia and expanded the Virgin in WSJ Magazine to Latin America. At News Australia, we've launched our next generation tablet apps for the Metro mastheads and are offering advertisers a seamless cross platform product. We will as one must continue to iterate and improve the offerings. We are capitalizing on the strength of The Australian by publishing a new business section to attract advertisers and readers and leveraging some content from the Wall Street Journal in another example of cross border, cross fertilization. Turning to digital education.
We had a solid quarter led by our early grade hybrid product offerings. Feedback from the launch of our digital ELA curriculum and math offerings has been positive and we believe they position Amplify strongly for the upcoming sales cycle. Before I conclude and turn things over to Beatty for more statistical specifics, let me return briefly to the subject of Moo. We are even more excited about its potential than when we announced plans for the acquisition in September. It is increasingly clear that the U.
S. Online real estate market is fragmented and at a rather early stage of its evolution compared to markets elsewhere in the world. Moove has the freshest, most accurate listings and a strong relationship with realtors. These assets will soon be complemented by the powerful media platforms at the heart of News Corp including The Wall Street Journal and News America Marketing. We will have compelling content and unique brand building potency and technological savvy, all of which are crucial ingredients in the sprint to success.
And we'll have the great advantage of involvement by REA, a majority owned Australian online company whose own success is legend and which will be able to share valuable learnings and lessons with Move. An estimated $14,000,000,000 will be spent on the marketing of properties this year by real estate agents and brokers in the United States and that figure does not include rentals or mortgage financing. We expect the recent relaxation of mortgage lending restrictions will also help stimulate the housing market, which has yet to recover full health after the financial crisis. The combination of the shift to digital marketing and the broader economic trends are certainly auspicious. Realtor.com will allow us to gather important data of value to our other properties.
When a purchaser identifies an interest in a home in Trivecca or Taos, they are potential Wall Street Journal subscribers. We will be able to repurpose that permission data for our other partners and clients. We anticipate that it will be a rich source of monetizable intelligence about a desirable demographic. While there is much hard work ahead, we believe the rewards of realtor.com will be real for all of our shareholders. We remain committed to a balanced long term approach to capital allocation among organic investment, strategic M and A and the return of capital.
As evidenced by the Move deal, our strategy is to pursue new opportunities where we can use our global platform and scale, opportunities which inherently complement and extend our expertise. Now let me turn it over to Baty, who'll provide background detail on the positive results we're announcing today.
Thanks, Robert. First, I'd like to share with you some high level financial highlights and then we'll discuss each segment in further detail. We reported fiscal 2015 Q1 total revenue of $2,200,000,000 a 4% increase versus the prior year period revenues of $2,100,000,000 Excluding the impact of acquisitions, divestitures and foreign currency fluctuations, adjusted revenues were up 1% compared to the prior year. Turning to EBITDA. We reported total segment EBITDA of $170,000,000 which was a 21% increase versus the prior year period.
Results this quarter include $14,000,000 of costs related to the U. K. Newspaper matters net of indemnification. Excluding that cost and the impact of acquisitions, divestitures and foreign currency fluctuations, our adjusted total segment EBITDA grew by 18% versus the prior year. Reported EPS were $0.11 versus 0 point 0 $5 Excluding restructuring and impairment charges, U.
K. Newspaper metacost and other one time items, adjusted EPS were $0.09 versus $0.03 in the prior year. Free cash flow available to News Corporation improved by $83,000,000 from negative $10,000,000 in the prior year to positive $73,000,000 in the first quarter. As Robert noted, the results demonstrate both the breadth of our portfolio and our diversification across geographies, lines of business and revenue mix. We significantly grew our EBITDA and our free cash flow amid a still challenging ad market, albeit we saw lower declines in Australia and at The Wall Street Journal compared to the Q4 of fiscal 2014.
The results today are the product prudent reinvestment, improved market share and ongoing operating efficiencies. Just to highlight a few themes. We've been diligent on costs and we'll continue to look for ways to drive further efficiencies. We're going to reinvest in digital, but that should lead to a more profitable company. Of note, within our News and Information Services segment, we grew EBITDA at News Australia this quarter, thanks to
thanks to cost management, lower
advertising declines and higher pricing across many of our metro mastheads. While we have been candid about some of the challenges at our News and Information Services segment, our hope is to show stabilization this year and I think we're off to an encouraging start. We're also strengthening 2 of our core pillars, digital real estate and book publishing, both of which contributed significantly to our strong top and bottom line results this quarter. We believe adding Move to our platform will be another leg to growth and another significant step towards further digitalization of Muse. We anticipate the Move deal to close in the current quarter and we'll have more to talk on this next quarter.
We're also very pleased with the integration of Harlequin as we focus both on cost savings and leveraging their foreign language footprint. We also remain very focused on free cash flow. And despite the impact on capital spending related to the company's London relocation as well as continued investment spending at Amplify, we still significantly improved our free cash flow versus the prior year period. Our goal remains to reshape the growth profile of News Corp. Through prudent investment and cost discipline and we think that the results today are a testament to that.
With that as a brief overview, let's look at the Q1 performance for each of the key segments. In News and Information Services, revenues for the quarter declined $44,000,000 or 3% versus the prior year period. Adjusted segment revenues also declined 3%. Within these segment revenues, advertising declined around 7% this quarter, a consecutive improvement from the 9% decline in the Q4 of fiscal 2014. Looking at advertising across our key publishing units.
At News Corp Australia ad revenues declined around 5% or 6% in local currency for the quarter and showed particular strength in September. This was a consecutive improvement compared to a decline of 16% or 11% in local currency in the Q4 of 2014. We saw strong improvements in the national real estate and auto categories. At News U. K, advertising revenues declined around 6% or 13% in local currency, relatively consistent with Q4 of fiscal 2014 impacted by weakness in retail, telecom and finance.
News U. K. Advertising continued to remain challenged through October as a result of general market softness. And at The Wall Street Journal, advertising declined high single digits this quarter, impacted by tougher year ago comparisons, but we saw an improvement from Q4 of fiscal 2014 and gained momentum through the quarter led by our digital offerings. Whilst it is early and booking cycles remain short, The Wall Street Journal has shown strong improvement in October, driven by 2 categories: finance and technology.
At News America Marketing, in store advertising improved 10%, but this was offset by declines in freestanding inserts, which have been under pressure in the quarter and continued into October. Total circulation and subscription revenues for the quarter declined 1%, driven primarily by continued softness in Professional Information Business at Dow Jones, which had a negative $13,000,000 impact to revenues this quarter. However, again, this was an improvement versus the Q4 of fiscal 2014 as we continue to make progress to stabilize and retain existing Factiva customers. Total newspaper circulation revenues showed modest growth, mostly driven by subscription and cover price increases across a number of our with an eye on both competition with an eye on both competition and most importantly consumer value. And to that point, it's worth highlighting that we have recently restructured the subscription pricing for The Wall Street Journal in early October for new customers, which raises the price for the print digital bundle to $32.99 and for digital only to $28.99 representing a $4 per month increase for both offerings.
We've also eliminated the historical discount for digital versus print, taking a page from the success of The Times in the U. K. As Robert noted. Segment EBITDA decreased $28,000,000 in the quarter or 21 percent as compared to the prior year period and adjusted segment EBITDA was down 19%. Included in segment EBITDA was $14,000,000 related to the relocation of our London operations for dual rent and other facility costs, which accounted for half of the year over year percentage decline.
Our 2nd fiscal quarter should be the last quarter of the dual rent P and L impact. Turning to the Book Publishing segment. Revenues improved 24% and segment EBITDA grew 28% versus the prior year quarter. Reported EBITDA this quarter includes approximately $5,000,000 of Harlequin related transaction fees. Excluding the results from the Harlequin acquisition, which closed on August 1 and the related transaction fees, the impact from the divestiture of the live events business last year and foreign currency fluctuations, adjusted revenues grew by 6% and adjusted segment EBITDA by 23%.
Total e book net sales for the quarter grew 28% and accounted for 22% of consumer revenues. Excluding Harlequin, e book revenue growth was 8%. The Divergent series continues to sell very well this quarter totaling over 3.5 1,000,000 net units modestly above last quarter and includes the impact from a new title for a divergent collection. We also had solid contributions in general books from Steve Harvey's Act Like a Success and Daniel Silver's The Heist and carryover demand in Christian Publishing from Sarah Young's Jesus Calling. This week, we announced plans to close our HarperCollins Canada warehouse and consolidate distribution in North America.
This is part of our long term strategy to streamline distribution operations, which will lead to significant cost savings. While it's early in the integration with Harlequin, we've been very pleased with the progress to date. We're actively looking for cost saving opportunities in a number of overlapping territories. At this point, we would expect aggregate cost savings to approximate those at Thomas Nelson, which was over $20,000,000 although it will take some time as we exit contractual commitments and renegotiate manufacturing terms to realize the synergies. We're also beginning to tap into the Harlequin network with the recently announced expansion of our publishing program in Germany with additional markets planned in the future and we also announced a foreign language deal with top author Daniel Silva with others in the pipeline.
Finally, we announced a subscription offering for Harlequin with Scribd for backlist titles as we look to further monetize its valuable catalog and leverage HarperCollins' existing digital distribution relationships. As I mentioned last quarter, core HarperCollins does face tough comps this year due to the success of the Divergent series last year, with the majority of the Divergent units having been sold in fiscal Q2 and Q3 of the prior year. In Cable Network Programming, revenues improved $7,000,000 or 5% compared to the prior year. Subscription revenues grew 9%, benefiting primarily from higher affiliate fees from Foxtel and increased subscribers. Advertising revenues declined modestly impacted by a soft marketplace and a tough prior year comparison related to election spending and the absence of 2 major events that didn't air this year, namely the Lions rugby tour and the Ashes Cricket Series.
Segment EBITDA in the quarter was up 10% compared to the prior year. Excluding the impact of foreign currency fluctuations, adjusted revenues increased 4% and adjusted segment EBITDA improved by 10%. In Digital Real Estate Services, revenues increased $22,000,000 or 24% compared to the same quarter last year, reflecting higher pricing and uptake of premium products. Segment EBITDA increased $13,000,000 or 30 percent this quarter compared to the prior year, primarily due to the increased revenue. Reported results also include roughly $2,000,000 of fees incurred at the end of September for the proposed acquisition of Move.
Excluding adverse foreign currency impact and the Move transaction costs, adjusted revenue and adjusted segment EBITDA grew 23% and 32% respectively. Respectively. At Digital Education, revenues increased $15,000,000 compared to the prior year or 56% driven by the adoption of our K-five printdigitalhybridlearning products and from higher tablet sales. Segment EBITDA improved $27,000,000 to a loss of $24,000,000 about $15,000,000 of that was due to the capitalization of software development costs related to our digital ELA product and the balance from improved top line. For our other segment, excluding the U.
K. Newspaper matter costs, adjusted segment EBITDA was relatively flat at negative $41,000,000 compared to negative $40,000,000 in the prior year. With respect to earnings from affiliates, Foxtel ended the quarter with around 2,600,000 total subscribers, up 5% versus the prior year, driven by higher digital platform subscribers. Cable and satellite churn improved to 10.9% compared to 12.1% in the prior year. Revenues for the quarter grew 1% due to the impact of foreign currency fluctuations and growth in subscriber revenues.
And EBITDA increased around 2% versus the prior year quarter due to the subscriber revenue growth, offset by increased operating expenses resulting from the impact of foreign currency fluctuations. Foxtel launched its new revamped pricing and packaging on Monday, November 3rd, with an expectation of improvement in cable satellite subscriber penetration over the course of the year. We'll provide an update on progress next quarter. Turning now to cash flow. News Corp's cash flow from operations improved to $183,000,000 compared to $59,000,000 in the prior year and free cash flow available to News Corp improved to $73,000,000 compared to negative $10,000,000 in the prior year.
We continue to expect full year CapEx to be relatively similar to the prior year at approximately $400,000,000 but this includes around $70,000,000 to complete the London relocation and $60,000,000 related to capitalized software amplifying. Our corporate overhead and strategy group costs are expected to be at a similar level with that in fiscal 2014. And at Digital Education, we continue to expect our total cash investment spend to be relatively similar in fiscal 2015 at over $200,000,000 including approximately $60,000,000 of capitalized content development costs. EBITDA for fiscal 2015 though is expected to improve by at least the amount capitalized. So just to summarize, we believe this quarter demonstrates that News Corp.
Is on the right track and we are confident that steps we've taken both investments and cost discipline are positioning the company for long term growth and equally important higher value per share. With that, let me hand it over to the operator for Q and A.
Thank you.
Jefferies. Thank you. Robert, can you give us more color on what you're seeing in print advertising at the journal? With some of the weakness in national advertising in TV and cable, it's a bit of a surprise. And so I guess was the tech money broad?
Did it support a particular launch? Does it have legs? And on Australia, how are current print trends looking there? Thanks.
John, look, obviously, we're not pretending to be soothsayers, so we're not giving you long term forecasts. But what we did see in particular at the journal and both in print, but particularly in print, but also in digital, was a recovery in finance and tech advertising. And that is encouraging. And it's so far
so good this quarter. And it is and we are talking
in terms of year on year gains. Quarter. And it is and we are talking in terms of year on year gains. In Australia, the team under Julian Clark have done a sterling job in retooling the business. And I think partly there, the improvement in trading conditions is to their in large part due to their focus again on local advertising.
The team is dedicated in its pursuit of clients and its servicing of clients. And so that has absolutely contributed to the improvement we're seeing there. And in a sense, what you've got in Australia now, if you wanted to typify it topographically or topographically is that the Murray River had silted up and that river is now flowing again.
Thanks. Operator, we'll take our next question please.
Thank you. We'll go to Tim Nollen with Macquarie.
I wanted to ask you about your Amplify division. You mentioned that you're heading into an active selling season. We are a good couple of months into the fall semester with a lot of common core sales for schools now underway. Just wonder if you could comment on what you have done and what you think the timeframe is of upcoming Amplify sales, please?
Well, we've seen sales across 5 states, a range of districts from Seminole County in Florida to Spokane in Washington. The sales season for us quite frankly will get more intense later in the fiscal year. And as the product is rolled out, you like us in these very public contracts will have a sense of how we're
Okay. Operator, we'll take our next question please.
Thank you. We'll go to Doug Arthur with Evercore.
Yes. Betty, you talked about the dual rent in London anticipating next quarter. What can you add in terms of sort of the underlying cost trends in news and information for the balance of the year?
I think we've been pleased with the sort of operating efficiencies we've seen at news and information Services, particularly in Australia where they've been taking out quite a bit of costs in the sort of backroom operations. And I think we would expect that sort of pace to sort of continue for the remainder of the year. The London building this quarter was double rent was $14,000,000 I think it will be similar for next quarter and then we're done. So that would obviously dissipate for quarters 3 and 4. So there'll be improvement just as a result of that.
Okay. Operator, we'll take our next question please.
We'll go next to Alexia Quadrani with JPMorgan.
Thank you. Just my questions on your acquisition strategy. You've made 2 very different acquisitions recently, Harlequin and then Move, 1 Publishing and 1 in Online Real Estate. I guess, Mike, you did talk a little bit about what your priorities are in terms of when you look for these deals and able to leverage your global franchise when you bring them under your fold. But if you could give us any more color in terms of are there certain segments of the markets that you're more focused on versus others?
I guess if there are any other priorities you take into consideration?
Alexia, I think we made clear at the very first Investor Day that we were particularly interested in digital acquisitions. We would focus on U. S. And global expansion and not so much Europe, a little more Asia, for example. But in particular, they have to be assets that complement our existing assets.
They have to be extensions of our expertise. And we have to be able to use our existing platforms in a way to ensure that the new companies become platforms of profitability. And that's very much the case with Harlequin and it's clearly the case with Move where in each case we have an existing skill set. We see, yes, synergies there, but we also see the potential for growth that is real. And it's a potential for growth based upon experience and expertise in the company as it exists.
So these are not eccentric purchases. These are extensions of that expertise.
Operator, we'll take our next question please.
We'll go to Michael Morris with Guggenheim Securities.
Thanks guys. With respect to the price changes at The Wall Street Journal, I apologize if I didn't hear this, but when did those price changes take place or when do they take place? And then also I know you've been sensitive about the impact to subscriber numbers of changing price. What was the pattern that you saw at the times when you made a similar change there? Thanks.
So the new pricing, as I said, for the full package is $32.99 that came into effect just now in October and it's for new customers. So that's what we've done for the full package. The print and web and mobile is $28.99
Operator, we'll take our next question please.
From Goldman Sachs, we'll go to Adam Alexander.
Good afternoon. Just touching on the Foxtel prices that were launched this week in Australia. It was a 50% cut on the base package. I'm just wondering, Robert, if you could give us a bit of detail on what sort of spin down we might see and whether or not that will have a top line impact on Foxtel revenue in the coming quarters?
Adam, it's a little early for us to give you any forecast along those lines. I think what we can say is that the prices have been in operation for a week. Apart from offering discounts to new subscribers, what we are offering are premium packages to existing subscribers. And look, the early inkling that we have is that the call center activity has been encouraging. But I think it's better for us to wait till the next quarter to give you more fully formed figures.
Operator, we'll take our next question, please.
We'll go to Craig Huber with Huber Research Partners.
Yes. Hi. I'm just curious your move acquisition realtor.com,
what are you going to do
on the management front there with REA? Are they going to are you going to lean heavily on the REA management to run this thing? Are you going to use people in house here existing company? Or are you going to keep the current management in place? Or how is it all going to work please?
Look, clearly, REA's expertise will be a benefit to move. But we're not going to use that expertise to an extent that would damage REA itself. And we're very, very conscious of that. I think what you have to understand about Moove is that we're extremely confident that we can accelerate growth in traffic and revenue without excessive investment given the resources we have at our disposal. And they're not just REA resources, but when you think about it, the Wall Street Journal Digital Network, where you're getting 500,000,000 page views a month, complementing the large number of page views and traffic that you get at realtor.com.
And so and when you look at what a typical real estate advertising website needs, you need a media platform, we have that. You need compelling content, we have that. And you need tech and software expertise, we have that. And we have those things without having to excessively invest.
Thank you.
Operator, we will take our next question please.
We'll go to Andrew Levi with Macquarie Securities.
Thank you. My question was just on Fox Sports. Presumably, Fox still is going to get a pickup in subscribers from the price changes that you put through. I was just wondering if FOX Sports gets a full carry through from any additional subscriber growth or whether the deal with FOX still has been recut to accommodate the price changes that they've put through?
To the extent Foxtel picks up a new subscriber who opts for the sports package, there will be a full flow through into Fox Sports.
Just to further that, about look on past patterns about 80% of Foxtel subscribers pick up the Fox Sports package. And have you
sorry, Robert, I was just going to say, have you historically been paid for all Foxtel subscribers or just for sports package subscribers into Fox Sports?
Andrew, can you repeat that question?
Yes. The question was historically, did Fox Sports receive a payment on total Foxxell subscribers or just on Foxtel subscribers who took the sports package?
People who took the sports package.
Okay. Thank
you. Operator, we will take our next question please.
We'll go to Justin Diddams with Citi.
Morning, guys. Thanks for your time. Question for me is on News and Information Services. Given the trends you're seeing in each of the businesses, do you think it's acceptable to expect that we can revenue growth in the back end of the year in this business?
It's probably not reasonable, Justin, to expect us to give you a forecast along those lines. All we can say is that the trends last quarter, in particular in Australia, the advertising trend with the journal in October in recent weeks, these have been positive trends relative to last year. But we're also very frank with you that it is difficult for us to perceive long term trends at the moment given the power of the spot market and therefore in predictive terms the spottiness of the statistics we have at our disposal. So what we do have in London, in Australia and at Dow Jones are teams who are working very, very hard to get the most out of their businesses. They're being very institutionally introspective on costs.
They're asking all the right existential expense questions. And we're very proud of the effort that those teams are making.
Thanks, Justin. Operator, we'll take our next question, please.
Thank you. And we'll go to Fraser McLeish from Credit Suisse.
Thanks. I might just like to follow-up on the question that Andrew asked on Fox Sports. Can you just confirm, has there been any change in the amount you get per Fox Sports subscriber as a result of the overall pricing changes? Or is that still the same as it was before? Thanks.
Well, we're not disclosing specific pricing, but generally you can take it that it's along the same sort of lines that we had before.
All right. Thank you.
Thank you.
Thanks, Frasier. Operator, we will take our next question.
Thank you. We'll go to Brian Han with Morningstar.
Hi. Thanks. As we think about the Move acquisition going forward and Robert you've already mentioned the brand building potency of News Corp itself. But do you have any special marketing relationship with Fox Media Properties? Or is it all on an arm's length basis?
Well, look, clearly, we'll be involved in negotiations with our friends at Fox. But look, we've got News America Marketing and the freestanding insert business. We have the National Association of Realtors, which this year has invested around $30,000,000 in marketing. And we intend to strengthen the relationship to ensure that the complementarity of the marketing at Nara and our marketing. So combined, the sum of those parts will be a very, very powerful platform because we're conscious quite obviously that marketing can be expensive.
But when we calculated the benefits of buying Moove, clearly we have a comparative advantage when it comes to brand building and traffic driving.
Operator, are there any additional questions?
At this time, there are no further questions in the queue. Mr. Floren, I'll turn the call back to you.
Thank you. Great. Thank you very much for participating and we look forward to updating on you on our progress next quarter. Have a good day.
And ladies and gentlemen, that does conclude today's conference. We thank you for your participation.