Good day, and welcome to the News Corp Fourth Quarter Earnings Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Mike Florin, Senior Vice President and Head of Investor Relations. Please go ahead, sir.

Thank you very much, Blake. Hello, everyone, and welcome to News Corp's fiscal fourth quarter 2014 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 Bedi Singh, Chief Financial Officer. We'll open with some prepared remarks, and then we'll be happy to take some questions from the investment community. This call may include certain forward-looking information with respect to News Corp's business and strategy. Actual results could differ materially from what is said. News Corporation's Form 10-K for the 12 months ended June 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 will include certain non-GAAP financial measurements. The definition of and reconciliation of such measures can be found in our earnings release and our 10-K 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 Thomson for some opening comments.

Thank you, Mike. We've now completed 1 full fiscal year as the new News Corp. And it's fair to say that the sensibility of a startup has characterized our pursuit of digital and global expansion for our distinctive portfolio of companies, a portfolio that is diverse in both revenue mix and geographic spread. We will be building on the company's proud tradition and the progress attained over the past year, during which we made disciplined strategic acquisitions, targeted divestments and tactical investments in technological and international initiatives. The company is at the very center of the global debate over the value of content and the creation of platform permutations for the delivery of that content. Throughout the year, we have also been disciplined on costs and aim to deliver value to our customers, advertisers and investors. One year into our existence, the real measure of our progress lies in the answer to this question. Are we better off, better positioned today than when the journey began? For News Corp, the answer is a resounding yes. We said on Investor Day that we would become more digital and global, and we are. We have increased market share in a number of our business, most notably, REA and HarperCollins. We said that we would be acutely and astutely cost-conscious. And we have been, and we'll continue to be. Our costs this year are down, and we will assiduously search for additional savings. We said that technology is the canvas for our content, and that has never been more true than it is today. We said that the percentage of our revenue that comes from nonadvertising sources will increase significantly over 5 years. And 1 year in, we can see that prediction being borne out. In fact, today, nonadvertising sources account for more…

Thanks, Robert, and good afternoon, everyone. As Robert mentioned, we made strong progress in our first year to further digitize our asset portfolio and improve our market share across several business units. We prudently reduced our cost base and held consolidated adjusted EBITDA margins relatively stable, despite continuing advertising headwinds. For the full year, we reported revenues of $8.6 billion, a 4% decrease versus the prior year. Excluding the impact of acquisitions, divestitures and foreign currency fluctuations, adjusted revenues were 1% lower than the prior year. We reported full year total segment EBITDA of $770 million, which was a 12% increase versus the prior year. Reported results included costs related to the U.K. Newspaper Matters, net of indemnification, which was $72 million for the year. Excluding all acquisitions and divestitures, costs related to the U.K. Newspaper Matters and foreign currency fluctuations, adjusted total segment EBITDA was down 2% versus the prior year, and would have being flat, excluding the dual rent costs for the London office. Fiscal 2014 reported EPS were $0.41 versus $0.81 in the prior year, which included a significant nontaxable gain in Other net related to the CMH acquisition and the sale of our ownership interest in SKY Network Television, as well as impairment charges net of taxes. Excluding the impact of all these and other items, our adjusted EPS were $0.46 compared to $0.62 in the prior year. Free cash flow available to News Corp was $365 million, an improvement of $293 million compared to last year. For the fourth quarter, the company reported total revenues of $2.2 billion, a 3% decrease versus the prior year period, and our adjusted revenue declined by 1%. Fiscal fourth quarter total reported segment EBITDA was $127 million, a 2% decrease versus the prior year period. Reported results included $16…

[Operator Instructions] And we will take our next question from John Janedis at Jefferies.

Bedi, now that you've been public for a year, can you give us your current views on return of capital given your free cash flow generation last year? And then on news segments, the decline in EBITDA, at least in the fourth quarter, was a bit more than what I would've expected. Are those marketing initiatives going to step down in the next quarter or 2? And are you starting to run out of leverage to pull on the cost front?

Thanks, John. Let me just start by addressing the fourth quarter. Clearly, as we had also mentioned in the third quarter, we expected to see additional marketing costs in London, which indeed did come through, and ones viewed [ph] that they will be beneficial to us in terms of revenue in the quarters to come. The London relocation, obviously, was also an extra expense in that quarter. And the professional information business at Dow Jones was also soft. So I think that gives you a sense of the kind of impact those things had in Q4. With respect to your earlier question, I think the way to think about it is we're still very focused on making sure that the business is stabilized, especially in News and Information Services. And we look to additional investments and smart, strategic and disciplined acquisitions, clearly with a view to generating long-term shareholder value per share, which remains kind of our mantra.

Our next question comes from Entcho Raykovski at Deutsche Bank.

My question is around Amplify. And you've obviously provided some guidance there into fiscal '15. Is that contingent on targets being met throughout the year? Or are you feeling it's too early in the performance of the business necessarily to be setting targets?

It's Robert here. To be honest, it's little early in the business to be setting targets. But what we're focused on is the development of the curriculum. That's the key part of the investment that we've undertaken at Amplify. And we said to you 18 months ago, that in 18 months, we would have a much clearer indication of the trajectory of the business. And I think it's fair to say now that we are getting a sense of that. And we still hold ourselves to that deadline. And so as the business unfolds over the next 12 months, we'll be keeping you updated about sales, about sales patterns and about the substance of the business.

And if I can just add to that. Clearly, ELA was the sort of production effort and now it's gone to market. But we still have a lot of production effort behind math and science, which will continue in 2015. And sales for those products will start at the end of 2015.

It's a significant investment, but it's clearly a significant opportunity.

And sorry, if I could just follow up. In the coming few months, so do you have specific student targets that you do need to reach? Are you prepared to disclose those?

Look, we don't have specific targets. This business, as you can understand, is evolving. It's in the early stage of the evolution. It's evolving quickly. And as we pass key metrics, we'll pass those metrics onto you.

Our next question comes from Justin Diddams with Citi.

Just a question on the News Information Services business. Given we enter FY '15 with what's potentially a continuation of these advertising declines, do you think there's scope again in FY '15 to cut the same amount of cost out of the cost base? Otherwise, we probably need to put in an EBITDA number much lower for this year if you're not able to cut those costs. I just wanted to clarify that it was $100 million spend from the office move in the U.K.?

So in terms of CapEx that we spent in the London building, that was -- in fiscal '14, it was $75 million of capital expenditure. And we expect somewhere in that sort of region in fiscal '15 as well, just to fit out the building completely. People have started moving in, but not all the floors are occupied.

Justin, under your question about cost and advertising trends. First of all, on costs, clearly, we're -- because of the concentration and new focus of the new News, we are finding opportunities to consolidate and to cut costs. And that, frankly, is not going to stop. And that's separate from trends in the advertising revenue, which clearly, the winds have been buffeting. But what we're seeing really are different circumstances in different regions. And it's -- at the moment, there are indications that the rate of decline has declined in Australia. There are green shoots on a nullable [ph] plane. And part of that is great work by our team in Australia. We focused on local advertising, and local advertising revenue trajectory has changed in Australia. The national market is different, but there'll be an increasing focus on that as well. And that's a great tribute to Julian Clarke and Peter Tonagh and our advertising team in Australia. At Dow Jones and The Wall Street Journal, it clearly was a quarter of decline. But as we look forward a little bit, you'll see that, for example, WSJ magazine, which didn't exist when News Corp took over Dow Jones, in September it will have 2 issues. One of them a record amount of revenue. You can count the pages for yourself. Meanwhile in the U.K. in the last quarter, clearly there was some marketing spend. I know companies like to blame the World Cup for all sort of ailments, but it was clear that if England had progressed beyond the group stage in Brazil that advertising would've picked up. There would've been momentum. But it's also fair to say that the England team failed to exceed low expectations.

And our next question comes from Michael Morris at Guggenheim Securities.

With respect to The Wall Street Journal and the value of the content, the fact that I think it's must-have-access-to for most business professionals, could you talk a little bit about the pricing power there? How you look at pulling levers on pricing and the risk domestically? And also, when you look at that brand outside the U.S, where do you think you are in fully leveraging the brands and content and what's -- what can we be looking for there in the future?

Well, I think it's fair to say that we haven't fully leveraged the brand and that Will Lewis, who's been doing a marvelous job since he took the helm, is looking not only overseas opportunity, but what more, to your point, can be done to leverage and take advantage of the necessity that many people have to read Wall Street Journal content, but also looking at different platforms for delivery of that content. And over the period since the News Corp acquisition, we've been seeing strong year-after-year growth in circulation revenue. And there's no reason for that not to continue.

Our next question comes from Alexia Quadrani at JPMorgan. Alexia S. Quadrani - JP Morgan Chase & Co, Research Division: When you look at the Book Publishing business, which has clearly been an outperformer for some time here, and you look at the -- a book like Divergent, which is a multiple part -- there's several books in this series, how long does -- how long of a tail does that typically have? I mean, I know you mentioned more challenging comps in the back half of your fiscal year. But for the next couple of quarters, can we continue to benefit from this series or have we already played it through a bit?

Look, it's a little difficult to forecast. I need better [ph] soothsayers. And it is -- it's a blockbuster. Well for example, there are variables that may have an efficacious impact, such as the release of the second movie in the trilogy, which is scheduled for the spring. So it's a -- we're -- at the moment, it's fair to say that we're still seeing benefits.

Our next question comes from Doug Arthur at Evercore.

Robert, you alluded to a sort of stepped-up or accelerated rollout of digital content in the News and Information group given the success of the Sun+. And I mean, that's not a new strategy. But in terms of this marketing spend, as you do similar efforts in Australia, perhaps more stepped up in the U.S., are we likely to see the marketing spend line go up as a result, in line with this effort?

To be honest, Doug, I wouldn't draw too many conclusions -- long-term conclusions from the last quarter. I think one of the advantages we have as a company now is that we learn from experiences in different places. The executives in London, Sydney and New York are constantly talking about efficient marketing spend. And so that focus is enabling us to, generally, over the longer term, keep the marketing spend to the minimum necessary.

Our next question comes from Craig Huber at Huber Research Partners.

My first line of question, please. What was the cash level on your balance sheet at the end of the quarter? And also, what is holding you guys back from buying stock and/or putting in place a quarterly dividend? I have a follow-on.

So our cash balance at the end of the quarter and, obviously, the fiscal year, was $3.1 billion. Anyway, in terms of how we think about deploying the cash, as we've said before, we're very focused on making sure that we are doing smart strategic acquisitions, that we make sure the top line is getting stabilized. We make internal investments in projects such as BallBall. So that's really the front line focus to make sure we build long-term shareholder value at the company.

Our next question comes from Adam Alexander at Goldman Sachs.

Just a question on Dow Jones' Institutional business. It's obviously been a drag for FY '14. You mentioned that you've seen some stabilization. I'm just wondering if you could give some color around what's the key area of customer pushback there and how you're going about addressing that?

To be frank, the key area of push back was in Factiva, where we had changed the offering in a way that, to be honest, some of the clients found unacceptable. And so what we've done, we've listened to our clients. We've perfected the product -- the pitch and the pricing, and we're starting to see some positive feedback there.

We'll take your next question from Eric Katz at Wells Fargo.

With regard to the investment REA Group made in Southeast Asia, can you tell us a little bit more about that asset and if you think it can move the needle in the segment off already strong growth rates? And then secondly, foreign currency has been a big headwind for you in fiscal '14, but it seems like it could lapping some of those comps. So do you feel like you may have a bit of a tailwind now in fiscal '15 as you lap that?

It's hard to ensure predict on foreign currencies. But yes, I think, generally speaking, shouldn't be as unfavorable as we saw in 2014. Are you asking about the iProperty acquisition? Sorry, I didn't get the first part of the question.

Yes.

So we've taken a small stake in iProperty. I think we've disclosed it's 17% or 17.5%. It's really REA that's done that. And I think it's part of their stated objective of expanding outside sort of Australia, but near to Australia in a sense, so that you have the ability to monitor what's going on in the region that's close by. We'll have a board seat on that company, for that investment. And I think we'll help them and encourage them to grow. There may be cross-platform opportunities with other things we're doing in the region, such as with SEEK Asia or with BallBall, which we haven't fully exploited yet.

I think it's fair to say at the Investor Day, we indicated that we would increase our presence in East Asia and frankly, in the U.S. We're keeping that promise. As Bedi said, it's a relatively small, at this stage, investment. But it's a small investment in a fast-growing region.

[Operator Instructions] Our next question comes from Alice Bennett at CBA.

Just -- I have a question around FOX SPORTS. Maybe just a bit of a clarification. So did you say that total local currency revenue was down 2% but subscription, up 6%? And if that's the case, what drags down? Was it just advertising or was there something else that drags the total revenue down to that negative territory?

I think the reported numbers were dragged down by foreign currency. But I think local currency, we were up.

Okay. So is that the adjusted number in the...

Yes. Adjusted -- we've adjusted for -- sorry, yes, for currency.

And there are no further questions in the queue.

Okay. Well, thank you, all, for participating, and we look forward to sharing with you our progress throughout the year. Have a good night.

And that does conclude today's conference. We thank you for your participation.