Earnings call transcript Q3 2023

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Operator

Welcome to News Corp's Third Quarter Fiscal 2023 Earnings Conference Call. Today's conference is being recorded. Media will be allowed on a listen-only basis.

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

Michael Florin

operator. much, very you Thank Hello, everyone, XXXX fiscal quarter News welcome call. to earnings Corp's third and We press at our now issued earnings posted and minutes on it's ago, our website newscorp.com. release about XX

Robert On the Chief Officer. Chief and Susan Financial Thomson, call Panuccio, Executive; are today

will include remarks, then materially certain Corp's with to happy some forward-looking we'll investment community. business prepared from said. is News Actual what differ take information from questions the with results and This open be We and to call could strategy. may respect

Corp's XX-K and cautionary actual differ News Form filings and identify contain uncertainties results form risks and statements XX-Q information. cause regarding forward-looking that could to

and will can the total certain segment website. applicable adjusted the adjusted found GAAP this financial measurements our reconciliations definitions in for and include of such to segment call be earnings non-GAAP measures EBITDA, periods such as release EBITDA on Additionally, The posted non-GAAP EPS.

to opening pass some Robert it for that, With over I'll Thomson comments.

Robert Thomson

Thank you, Mike.

people soon Jones Tucker, governments, that Evan other media for Dow Emma the family Latour, prevail common be and and for of that captivity support was We for Mr. noting detained U.S. Journal all and discussing the I willfully in that released. sense world. day justice and the many and by to Russia. Before Evan our companies, like principled for shown Gershkovich by concerned unstinting XXth the around express the reporter third would today begin in XXXX will trust results fiscal it Wall Evan and particularly will organizations the and to quarter wrongfully our marks important is thanks who that his year Street of journalism

more see compared third gain and quarter We positive, traction. to began the meaningful trends our and macro Turning now prior quarter sect cutting cost beginning results. oral to program improvements the with certain to to

a surge follow ongoing disruptions. And the inflation, persistent of in XXXX. volatility, and earnings we've and interest profitability supply context, challenges For foreign record confronting been exchange rates, these revenues chain in fiscal

of Our robust, News a in results demonstrate increase insipid particularly Jones character professional media other with core which the information was In by world in in period was revenues certain the compared companies. Corp, revenue advertising activity highlighted non clearly advertising XX% at the the fundamental differences parts of our in business. a Dow

as For last unfavorable revenues XX% down decline tough distinctly prior despite the the QX. $X.X quarter, excluding total year the over revenues external down compared profitability those equal X% year-over-year X% year. billion a million articulated movements $XXX only Adjusted to acquisitions were comparison, of our and was Meanwhile, in and Forex pressures. just

annualized the end the in As difficult well reduction by X%, million cost step yield which of is more are year. headcount to of than taking drive, in $XXX for advanced this calendar reducing we by expected necessary but company now the wide savings

In addition, and savings expect further as categories, we we efficiency strictly are scrutinizing for and spending efficacy. all strive across

business. media our some no a generative There much generative and the it it there a has is of of to may intellectual about discussion, challenge impact journalism. potential AI of pose that profoundly Candidly, will enlightened, not AI, property the to doubt been so future some and affect

as aware, experimented more have the are be as who those will and insightful material, the contemporary. than answers ChatGPT retrospective only As with are factual and source

used should be enhanced we which areas our IP will whose three see we by precepts in compensated. our products by creators, generative those be AI which Given content will be for

engines. to Firstly, train will already has AI been content exploited inevitably as be our used

those by will our and answers we that content monetization. share specific surfaced of fair thirdly, synthesized certainly aggregated other crucially, Secondly, to and as of And expect us response and examples will monetized AI in content be our queries. our be parties,

AI evolved in significantly of past our Apple, has A The Dow foremost AI. degenerative and appreciate of cannot few which social Generative the commercial And be represent business we among years. and AI the most Google, cannot Jones in Microsoft and at the news can apt, nor commitment debate the partners journalism and ambiguity, digital Meta. trusted content and us The world's would I analysis. brings be to be ignorance, more purveyors integrity data over

including The which and burgeoning rise the information a third reflected mentioned, business, our reported risk and at its in robust affected even compliance times, a Forex professional and I highlighted that fluctuations. in economic XX% quarter our by was business, by revenue testing generation, of surge as was revenues, number negatively XX%

acquisitions months. the benefited continue growth from which their CMA, Dow high has margin Jones of Opus and recent certainly in

expanding metrics, and be on carbon strong offerings many of the year, and next growth will their emphasis we over ahead. renewables product of particular We confident years are with

accounted the Dow for revenues XX% all revenues level from fiscal a XXXX. Digital Jones increase during of at XX% significant

came strong advertising. ad under did see so we April, obviously in in information Journal performance and pressure. professional the at Jones to Dow Though the million, subscriptions, some market million despite to continued business digital in demand $X.X grow whole total print tech Wall the Street with insipid being in from weakness as XX% Aside up the subscriptions to an auguries have overall The at up U.S. an million $X.X a with despite improved. improvement subscriptions now $X.X continue X%

Wall institutions market been Valley platforms Dare aspiring I the financial other for of say credentials. watch has firm Barron's vital its their reassure any And highlight and Bank solidity. U.S. financial a failure try to for bolster Street and to Journal, to catalyst a own Silicon the customers

accounts to cannibalization and base, for of the Foxtel churn marketing with at Patrick streaming products than also offsetting Foxtel leadership tribute that March for a is That low XX%. of success. have and under growth success more In and are Broadcast that levels McKenna. Australia, teams churn class thirds to been is world a revenue near be and retail Foxtel unfounded. the broadcast. Delaney Foxtel Fears catalyst service in group decline in record is on customer streaming our at subscription Shavon. continues to two total would the now build its Streaming

service As has at product stream. initial the a end its as out. sold been lucrative were entertainment of added on advertisers adding basic new advertising Binge from revenue of phase the March, streaming Interest packages launched

We years and flexibility pricing some demand and seemingly months ahead. have the on in

have the higher tough couple certainly at With HarperCollins. supply of a quarters chain compared quarter of to the first some After of fortunes improved moderation were third and a sellers snuffers. bevy Margins half. best in

in also attractive upcoming books this quarters. roster have We in an of

we are So the a sunlit to journey we uplands. on believe

self improved as DeSantis, Amazon's quarter, Never a Barbara Colleen to and Ron Be prospered. particular recommendation In Courage with contempt In Tarryn or Fisher's Saved. as and in The it orders Hoover read You Kingsolver Free. our Hall's and fourth worth a Never Joke If Damon could topping is interested Ben About Copperhead already the is quarter bestseller well I Can't listen. titles make a lists as That.

Magnolia published incarnation of the Cookbook. the also we week latest Last Table

We the went are prospects series. week, sale the new coinciding justifiably with Quinn, the optimistic this the Bridget about Shonda of Queen Rhimes, launch prequel and which for Julian Charlotte on and by Netflix

improvement in that currency countries. so most was outcome in news advertising vastly The increase over segment dollars, of substantial X% U.S. to media in reported constant the different a second this down increasing media X%, with most quarter companies a

innate teams sharing and our more confident intelligence revenue across reflected numbers. skilled that in and are We our is insights in advertising are that borders platforms

times of were XX% sun.com properties, notably, reaching site, the quarter has the the is and story billion to our views. total close the tough year-over-year benefited partnership U.S. pageviews which the York triumphed Post a in those success advertising in revenues has from and exceed with platform. U.S. search digital the The Sun's now One British New other

the XX% days, prior average connected in seasonal our and X.X the increase against League, the odds hit from which the the crescendo and an In year, reaches at reflective reaching million high, of by a listing of week coverage its time within per UK quarter, in wireless hopefully triumph arsenal. superb coming hours of all Premier an

New a properties content. Engagement for continued rose influence the third profitable to pageviews and the Post, to debate. perennial prior build its compelling the providing powerful year platform in over As maker in the to national its XXX March, at the be the for on X% on quarter, million important post digital York previously loss

obviously the and created opportunity. we'll improvement signs U.S. digitization of the surge in an have accompanying impact in At potential be had in market quarter, in and of the house for market market were that conditions buyers. uncertainty services property and the enough, advantage rate full sellers uncertainty Australia. of primed the But from digital far and the permanent evaporates, When There rates affordability that and interest estate to the we these impact housing real had is understand take the not has increase uncertainty are on this an complete. but

and And realtor and be quarter, they and of our to in segments. the midst among focusing sell on The media Post brand the we edition continue the wsj.com, of of In others, expect campaign the adjacencies the generate past use of the we are challenges U.S. quarters. seen York traffic. recognition results on Dr. benefits New and seen see Santa were is the in side will to platforms continuing that coming particularly from the rental

in and power impressions billion began shown than turbocharged February, have brands and the generated campaign to traffic. the unique has a bolster half project Since the we more

in and realestate.com rates. seeing indications significantly against QX prosper. up to is compared QX are the With are highest Australia, months we also seller conversion XX we the listing to million on believe in that poised year. experiences to integrated Realtor.com softer in the signs prices further At total and a March, Due nest seeing its the in in fifth encouraging we highest were REI though demand XXX into volume, with are and record. lower visits strengthening revenues is prior that reaching higher almost

in this visits is the political have is digital economic It is to India that where has country India as and site as potential. housing.com just in populous most and enormous China quarter. true the And growth metric, and relative stability worth year-over-year noting property average saw passed the continues leading also XX% platform in

the for the in much coming quarters. said quarter, I certainly As tangible at third and are has outset, positive auguries progress been there the

will and to for constantly on absolutely committed creating simplification, cost enduring and prioritize reviewing We value structure growth We thoughtful engines remain focus our to shareholders. of core and our our capital stewardship. reductions

Panuccio. Susan more to I now third developments insight to provide turn And quarter into

Susan Panuccio

you, Robert. Thank

the Corp results tangible from our XXXX. of well, the Our actions aggressive improvements should position implementation for quarter financial cost this which combined first half, with demonstrated fiscal News

just revenues over billion down or from year-over-year total second million the $XX currency headwinds. and quarter X% quarter significant impact a Third included which were negative was a foreign $X.X X% from rate improvement

by offset divestitures fluctuations, Subscription digital Excluding adjusted third improving prior publishing year the to the the compared segment. trends estate Video at quarter foreign flat news decline currency impact Services services acquisitions and were of segments media with the and revenues at real

to Advertising million Results sale $XXX across professional EBITDA geographies. our lower the year. versus prior segment trends proposed with the included mixed compared declined QX of were and the fees XX% year's Adjusted $X related Total EBITDA the to potential segment was million profits. Move. total record merger of prior Fox XX%

For to $ prior X.XX of also the earnings were in reported Adjusted the quarter, share the $X.XX prior $X.XX in share per the to $X.XX compared compared we in year. earnings per year. quarter

the the at million, Before least cost businesses of currently Reductions be done wanted an savings We initial of to reflected across vary fiscal to to of our the our given $XXX expect units majority $XXX work our in program. to costs I and the quarter, savings differing the XXXX. discuss business exceed annualized up headcount date. on I with estimate update provide gross million, from will reduction the nature

related in approximately $XXX to million to We to of restructuring incur half the reductions fiscal the $XX charges of 'XX. million headcount also expect second cash

revenues of pressures On the starting Australian the basis impacted and real a year, from to foreign the economic $XXX the Moving on ongoing by to segments Segment reporting on the fluctuations. million include an the negative revenues segment million XX%. decreased XX% individual macro both down markets. the U.S. results services. results adjusted currency The estate compared for $XX were housing impact digital or prior X%

to segment XX% $XXX a impact constant or the higher by a Move. XX%. negative XX% Adjusted basis. declined to revenues declined offset related to currency lower basis related reported revenues, were India, by partially million, and EBITDA on REI costs which currency costs REI million declined on down X% EBITDA Segment lower $XXX impacted headwinds at

uptake softness extent respectively. was In revenue were residential Melbourne Sydney driven and decline The in lesser buy and National lower XX% Australian by declines listings down revenues primarily increased were its other residential penetration, price and commercial a our XX% annual the the the services. financial plus, with Those another by down increases maintained to robust offset from residential quarter depth India, XX% and businesses premium which performance products leadership. audience in at favorable REI businesses, premiere partially Like in including and

steps reduce call discretionary taking Please for to is REI costs. following this with expenses REI's Corp. to refer and and spend release News earnings more call on a marketing details. focus their operational conference

million in lower reflecting $XX market At media business were prior enhancing on volumes lead fell lead the weathers million via quarter $XXX advertising Move real of markets, out unique quarter. including third were a monthly accelerating internal across market average prioritized declined across based by estate go while the up direct down Realtors $XX our with to optimizing volume implementing XX% housing XX% and the rentals operating set yet initiatives broader the revenues expenses a placements, revenues headwinds while managing building Corp, second driven businesses broader XX% down the Realtor challenges. allocation from on include XX% News for transaction metrics year, the optimizing as ongoing Lead partnership and to compared path new million been the in initiatives has homes vertical. revenues focusing users

On X% Subscription Services the prior basis the currency segment. X% a compared basis down $XXX headwinds. foreign for revenues on year rose the to were a due to Revenues fifth Video the currency quarter and and constant Binge. Turning reported to prior versus revenues again circulation million year Streaming to offset and the of at for from broadcast growth in volume year currency. benefiting pricing growth both Kayo accounted and than constant quarter prior higher subscription declines XX% consecutive more in XX% revenues of revenue compared the

nearly year approximately end Foxtel's the for XX% increase up of subscribers approximately total X% $X.X million base. streaming six paid accounted to subscriber closing at Total Total million across prior year-over-year. quarter paid subscribers in Foxtel X% improved the $X group paid and were to versus

subscribers start adds of million XX% popular quarter up largest X.X Kayo the improved Paid in of sports Net quarters for over the XXX,XXX, reached codes seven to prior a the year-over-year. increase record sequential with the in from last XX% also subscribers Revenues implemented rise from price million paid of in benefited subscribers release March. nearly successful from the quarter net from or ads of benefiting Binge year-over-year XXX,XXX February. a Us. to The grew Last the winter X.X

Binge the for basic XXth the of product introduced advertising mentioned, all Robert XX% As Foxtel within March on subscribers. the accounts product, approximately been

Foxtel advertising to modest improve Broadcast a ended in quarter expect down XXX million contribution We beginning fourth over the X.X year-over-year points quarter. revenue broadcast with from the residential subscribers. XX.X%. to churn basis continued

was enhancements. costs was fact, In dollars. reflecting retail over sports XX% contractual to prior Australian $XX XX XX% under the million Adjusted EBITDA Broadcast quarter Foxtel for year. in the X% EBITDA March XXXX. segment escalators higher X% churn Segment down declined due versus of to and rose just ARPU

year. in based X% subscription nature to year. and the the XX% revenues year. the total prior Digital total Moving over of last three represented revenues flat XX% adjusted on revenues of compared from million, On Circulation an by percentage revenue points to the prior this from advertising base. and year, points up revenues basis stability the to underscoring top posted $XXX with revenues of Dow were prior the up recurring line percentage impacted weaker revenues Jones. growth for healthy three up of third quarter compared Dow Jones quarter accounted revenues

PIP revenues. in revenues and We rising year-over-year are our and risk with continuing XX% the strong acquisitions of revenues with from for professional see of reflecting XX% strong coupled very CMA momentum revenues to information accounted segment Opus compliance. business

Dow a for EMEA. and point screening The to financial products. and negative we and by led search Risk strong rose an is foreign despite revenues our in robust, crime revenues demand base. performance customer notably from percentage pricing impact recurring, have reshape as more pipeline revenue be monitoring increasing most currency, and three remains Compliance XX% CMA Opus across increased Jones helping

continues to offering to its of creation new mentioned, will and carbon and expect products customers. for we current new Robert As index the expand lead

decline remained Retention of in The only add since rates net driven year-over-year by Jones digital print in well quarter. some highest Dow CMA's for XXX,XXX fourth sequentially, the volumes and quarter revenues XX% fiscal by or IBD. X%. modest Opus and Circulation subscriptions products Total the the was declined softness XX% grew XXXX. over lower

of on as categories from this launch this the million focus the year last fell advertising mentioned X% notable to IBD digital with quarter XX% of has technology impacts accounted quarter. Advertising been include was within quarter. Dow The down revenues third revenues the which XX% bundles, and declined for $XX and we finance and print expanded XX% in Jones to

challenged, market digits rate after in While with successive of a low decline single encouraging further the March down an remains month notably saw showed advertising improvement mid each improvements the are we seeing hitting and December signs with we abating in April.

The also EBITDA from million $XXX to to costs segment EBITDA business the of XX%. Adjusted lapping growth Jones for Dow last XX% rose EBITDA at experiencing Opus XX%. margins the impact inflationary of to the results over reflect segment still is half for the the or the Segment quarter pressures. be quarter first as the related transaction grew cost year. acquisition moderated declined

moderation. year, rose North America ongoing publishing X% in Amazon book book higher performance issues distribution we titles. first some manufacturing, to from declined and million, sales costs, were several in North the million. currency at chain first Segment offset $XX trends of recent now freight by in half reset saw After which by revenues Costs following in reflecting approximately showing stronger the specifically supply as fluctuations. well EBITDA foreign as signs are positive X% $XXX half orders driven a with Christian America flat challenging of At in the stability

lower HarperCollins quarter result XX% the the with strike month employee is of backlist fourth in for In represents The the three underway, quarter. also UAW, long quarter this sales well headcount which costs initiative settled fell a in for quarter year. the year. the should and accounted over line On sales an up slightly segment in and declined X% adjusted consumer rose of X%. Digital EBITDA basis X% revenues from with the revenues last XX% prior

news revenues $XXX impact improving revenues a Revenues prior to million down rate. foreign basis Growth The $XX digit currency. or subscriber and double media. fluctuations. from X% and from currency the and and Sunday X% constant adjusted Turning quarter subscription revenues X% in negative million declined were across rose included currency was Circulation the the by in news Times X% rose digital the and but cover increases on Australia Australia UK a constant X% price growth Times. driven on and

Advertising was of advertising advertising constant flat the revenues currency Times constant Times. in trends constant to Sunday U.S. growing News and currency the benefit continuing York quarter. this from sun.com X% strong gained in as led from but improvement print News an performance currency. at the Advertising improved both and improved this Australia advertising and and the rose down which Australia benefited at Advertising notably the and New performance, in revenues in by UK were in scale is quarter X% X% digital Post

Segment and in TV from in $XX year-over-year the incremental a EBITDA more $XX first the approximately rate UK, other of initiative digital to Talk decline slowed million initiatives to million. declined related as modest XX% half Australia reflecting much the investments

ongoing Newsprint saving having a were partially the across costs negative higher by businesses. this X%. initiatives $XX Adjusted EBITDA prices. pressures quarter fell cost offset remain from of Those million impact challenge segment

outlook. the to Turning

including extra prior compares. revenue fourth X% revenues an week or impact year contributed million $XXX year's last and which to will quarter, reminder a As growth about to

inflationary uncertain. pressures supply We to and and face some continue remain conditions advertising chain

that declined exposure important of to CMA. materially and including of has Opus result the the advertising of reshaping as it a acquisitions our portfolio, is company's However, note the to

quarter the foreign XX% ongoing to implement revenues In to of of total third in improvements prior quarter. exchange current continue spot comparison, difficult in headwinds aggressive represented Despite fact, given week as advertising we expect revenues in profitability the extra we cost initiatives. the only rates, fourth see and

like Estate for marketing expect digital challenged at Please commentary. Real by and to Australian new to term continue spend third in refer lead segments remain quarter, balance outlook volumes April necessary REI more reinvestment XX%. to a the will each Looking reductions specific elsewhere. for cost our in we listings near declined of Services with Move adjacencies the At and residential we

year an year we Services, Video currency continue expect costs Subscription sports a profitability rights the relatively second half visibility the improvement prior in by in In step prior fiscal be stable to related further the At April, the annual escalators. up Foxtel XXXX. group's to impacted to extra be the remains week in the contractual to year Dow for in advertising despite in full local we compares saw Jones, in will as limited, albeit

to of rate We which expect improve the lead investment spending slow would fourth in to the quarter. profitability

quarter the will now June. Opus fully have CMA We in lapped third the in acquisitions and lapse

was and Bridgerton book publishing a from Rhimes. with pressures volatile as remain our X about Magnolia soft news but to trends Shonda expect Robert revenue consistent Julia optimistic visibility. Charlotte, cost are we Prequel moderate Queen to advertising and Table, Volume data, trends In limited Joanna includes start Gaines Quinn which media, industry from April, with noted and At to slate, release

see in costs we improve segment. We and to incremental segment to in related profitability costs April hope lower to Talk expect which the part for investment, TV the total to due XXXX launched decline

also seen We UK. moderating newsprint in have cost pressures the

Q&A. let hand operator it that, for over the me With to

Operator

you. Thank

Q&A We will from JPMorgan. now David Our first from comes Instructions] session. question start [Operator Karnovsky the

David Karnovsky

get use do see risks what AI, Thank what is of how news the Thank readers. produce? some maybe kind you, information and that content this for a you view or of and follow opportunities generation up relationship cases you of in repackaging receive following about their the how tech and of Robert, going Hi. impact or your comments technology to then be consumers opens for you generative on up I'd you terms you. your as with And the on on news interested expanded your think to

Robert Thomson

Tokyo will generative recently the I using our sophisticated at impact. David, to HarperCollins, And teams. AI. been question. or It three a in a transforming thoughtful photo very programs. of generative seeing have early recent separate in Japan an by a was months stage of images obviously And profound evolution a for manga stories AI or words inputting programs create sketch has We're just

to of But our manga image or whether character saving not whatever. an potentially going business, business. the will from use of have It customer transforming obviously impact that complete an the You clearly create impact content. it's on lot time, or library billing service a only a of to sets, have profound the management and on

I mean one contradiction of overcome with scale. be any businesses that the expensive more you contradiction customize is it can AI. the that harder and to more And

think observed, consultant secret fighting of the I known as change building management not old of well new. focus on the Socrates but the to energy is your the all

Michael Florin

take we'll Leila question David. next please. Thanks, our

Operator

Our comes Kane Goldman from Hannan from Sachs. next question

Kane Hannan

follow if targets just been Good cost There's on about interested, -- Maybe why cost of the improving. in I quarter, that suppose program books in outlook guys. was first backdrop. that, [indiscernible] was things to been the the and commentary which Thanks with what pretty line there upgraded charges all potentially out the coming of particularly some through? for a Dow Just with the just we how interested think morning Jones on And the and suppose have the restructuring I as benefit the net question. top the positive

Robert Thomson

we've teams one difficult of work. of that's the we attributed And in identified call I calibration about element million will from our company that's the last reduction celebration, the earnings undertaking the diligence and the surpass travel the expenses. do will cutting million obviously, severely the look, that XXX fair is significantly just scrutinize cost but it's headcount savings underway exceed now to at to that say everything XXX that's tech spend Kane and the or emphasize

number savings total obviously next the will year total. that So exceed

Susan Panuccio

net And group really sort off cost of we improvement, the to details would our on cost can that for into but to across one able add we cost savings. reasons the to not savings drive they're into of to identifying P&L. QX savings, additional been the and from without areas to we both units, as majority expect leverage business the savings fiscal Kane cost expect going we've head We're Just experienced the which looked as get we see the of those quite is we can with [XXXX] of for

Michael Florin

our Leyla, next please. Thanks take Kane. we'll question,

Operator

Next Research. question [Operator Instructions]. comes from Craig Huber from Huber

Craig Huber

reduction of Hi, what on Had Huber. question X% Obviously, the months total ago, headcount announced cost costs. you Thank three Craig the savings costs. companies that all about Can Yes. you. five other you're Can roughly you quantify similar possible? headcount other touch about is you Is talking that just ? calls few And I stuff. you taking us? for a elsewhere mean, are quantify don't guys out reduce

Susan Panuccio

there. you'd We haven't cost we costs. We across around the our is as and what do office cuts our casual our discretionary lots base look I it at expect But areas. variable quantified looking we across look it, looking expenses, at what manufacturing can spend, opportunities print sites, Craig. different and say of We're can T&E a for plants we're constantly with have

well. We costs marketing have at as look a

to businesses having a a at variety of the that at said now. it's I really pretty actually this And continue So focus we costs as are good that look on.

Michael Florin

Leyla please. next take Craig. question, Thanks we'll our

Operator

Next from Macquarie. will come question from Darren Lung

Darren Lung

I the just Hello, to please. around costs issues want and opportunity. printing thanks ask supply guys, the for in higher chain books,

it's sort that the we're periods please? in and us looks to versus maintain to of think flat the year. prior I we've a give what's as just headwind in achieved changed it you talking or being it what view business So a like at about looking prior Can

Susan Panuccio

But because in we're supply are an some is easing pressures. are would of enhanced costs, think still that of say on the I paper some seeing freight coming comps pressures we're of additional the costs pressures. of still seeing we year-on-year mean, seeing as and fuel Actually, inflationary costs what experiencing because are up I the I are moderating a supply the coming we through some we're seeing chain shipping costs. of chain

was bit a little it So mixed.

have the are seeing moderation been up. but We they

Robert Thomson

Darren Susan. And supplement to just

and have Amazon no change current over been what positive coming profitability that has has been course, difference in the we that of is [indiscernible] will reset, the prevalent HarperCollins. the quarters. sellers year rhythm, best now the in confidence Of doubt past a of in And make more particularly the reset purchasing crop

Michael Florin

Thank you, next Darren, Leyla we take will question, our please.

Operator

Our from comes next from Loop Gould Alan question Capital.

Alan Gould

taking than Talk happening always continues advertising plans print to on shocked news happening how Two And little to Robert, you media the actually see business just detail that up. I'm what's with What Thanks better a and Can is there. the question. give digital of shocked secondly, things profitably? there? the more for well turn hold doing us to quarter? advertising TV this Susan

Robert Thomson

low say Well, always the it priority developments with to constantly dice months, across in venture formats and high generally will us us progress and have we're the video a can zones. products plethora platforms video to as you that our be give see And all we've In programs incremental different a globally, to a imagine, time I quality of expertise naturally for TV promote falling delivery you that for and enabled review our earnings. reduce different our on core is will are businesses. coming technological it costs expenses. given positive should project. a And and cost certainly able capability our And in enhanced slice flexibility Talk said the impact on that increasing

Susan Panuccio

some down open a advertising, pickup well. as they've we've on of retail, which in there It has up. the couple has over surprise. Down just to in Alan relates through as it categories. on Australia, advertising. in travel the mean been do different good And quarters has side, helped it I really depends look at really a get tailwind this mean years just to pleasant They I seen print started market last as the print seen

the each So to down but is different quarter, variable it really it's categories.

Michael Florin

take Thanks, Alan. Leyla, question, we'll our please. next

Operator

We'll from line Huber ahead follow take open. Huber your a up from Craig Research. Craig Go is

Craig Huber

and warehouses Your Amazon than issues better we quarter. book revenues thought called were the guys with about given out I held past issues up the you in them in stuff. much the mean,

through just behind that's you that all You talk think you now? or

Robert Thomson

is clearly complete. has adjustment Amazon. an as mentioned there That as Craig, we earlier, been I at adjustment understand

down it's really backlist. are past. awkward And front to now expanding about of impact the moments so the list quality those And and

of most example, quarter XX% recent backlist the a was For sales. in

more profitable backlist As you know, generally for us. is

And potential. our we excellent authors of make to opportunity so have our marketing and most an now the

Susan Panuccio

And of has a consumption. there in. Craig just we've little mean for softness come I also the bit in results April, And been had just

So the where But first consumption we're waiting to post better the the still much down half. pleasingly, than in settles see results for COVID were QX world.

Michael Florin

please. Thank we you, our Craig. take Thank you. will next question, Leila

Operator

At we further no questions. this time, have

closing back So for Michael I'll to hand Florin remarks.

Michael Florin

you you participating. care. Have great soon. Well, And thank Take talk And for day. we'll Great. Leila. all to you, thank a

News (NWSA) 11 May 232023 Q3 Earnings call transcript