Good day and welcome to News Corp 4Q FY 2018 Conference Call. Today’s call is being recorded. And as a reminder, all media is invited on a listen-only basis. At this time, I would like to turn today’s conference call over to Mike Florin, Senior Vice President and Head of Investor Relations. Please go ahead sir.

Thank you very much, Carrie. Hello, everyone and welcome to News Corp’s fiscal fourth quarter 2018 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 will open with some prepared remarks and then we will 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 will pass it over to Robert Thomson for some opening comments.

Thanks Mike. These are certainly uncertain times for some media companies, including social media companies. So, it is quite significant that during fiscal 2018, News Corp grew revenues and total segment EBITDA and was an influential voice of reason and reform in a sector that is evolving, but remains in need of sound change. When the new News Corp was launched 5 years ago, we promised to be relentlessly digital and global and that we would remain faithful to the principles and the values inherited from the founding company. It was also crucial for our shareholders that we become more than the sum of our partners. And while we ardently believe there is much toil head, we are confident that closer integration between and among our companies is helping us realize that potential. Our news mastheads and digital property sites continue to work closely to drive valuable audience and traffic and while our higher quality journalism is crucial to the burgeoning of Storyful and to the exponential expansion of Mansion Global. These are not just contrived concepts, but measurable outcomes and our full year numbers provide hard evidence of the company’s successful evolution. This past year, as a result of the transformative combination of Foxtel and Fox Sports Australia and muscular performances of book publishing, digital real estate services, the new News Corp. crossed the $1 billion threshold in profitability. And for the fourth quarter, both revenues and EBITDA were distinctly high compared to the previous year. Meanwhile, constructive conversations are underway with Google, YouTube and Facebook to recognize provenance, contract, piracy, and share the permission data that was generated by our journalism and our creative work. We sense that these companies are conscious, but the editorial ecosystem is changing and that IP is a priority, while piracy and pedantry…

Thank you, Robert. Before I review the financial results, I wanted to highlight five themes from this past year and the quarter, where we have made significant progress. We have taken steps to stabilize the News and Information Services segment and this year showed tangible improvement through a combination of cost initiatives and digital investments. We are seeing strong digital paid subscriber growth across many of our key properties, where digital subscribers now exceed print. Revenues were stable for the quarter and the fiscal year and the segment EBITDA reflected moderation in declines, a material improvement from recent trends. In addition, we continued to focus on potential industry solutions, which include our recently announced printing agreement with Fairfax in Australia. We have focused on strengthening our digital real estate services platform this year, which we have done by expanding into relevant adjacencies, investing in new businesses and products and growing our core audiences. This segment was our biggest EBITDA contributor and annual revenues now exceed well over $1 billion and have more than tripled separation. The performance at our book publishing segment this year underscores the value of premium content in global scale pasting record revenues since the company separated. We completed the Foxtel and Fox Sports Australia combination, which gives operational control to News Corp, reshapes our revenue base and provides more flexibility for News Corp moving forward and we continue to actively look at our portfolio. This year, we sold several non-core investments, including our stake in SEEK Asia and magazines in Australia and continue to evaluate our options with respect to our regional and community newspapers. With that, I would now like to discuss our financial results. For the full year fiscal 2018, total revenues were over $9 billion, an 11% increase compared to the prior year.…

Thank you. [Operator Instructions] Our first question will come from Kane Hannan with Goldman Sachs.

Good morning, Robert and Susan. Just on the Foxtel that you mentioned, could you just comment on what you say is I suppose the key hurdles this business would need to achieve on before you would be willing to go ahead and with such a transaction is adjusted subscriber growth that you are mentioning at the end?

Kane, it’s Robert here. I have just returned from Australia and it’s fair to say that with Patrick Delaney you have a new team, a new mood, a new momentum. And that will be crucial for the success in subscriptions that are generally speaking not just for an IPO, but for the health of the business generally. We will all be using as a benchmark. There absolutely no doubt that Foxtel has the best portfolio programs and sports rights and the letter being enhanced by the cricket rights. And there is no doubt as well that the Australian audience prepared to pay for programming is far greater than previously presumed. So, it’s fair to say both the circumstances on the ground and the context of the Australian market give us confidence in the future of Foxtel.

I think Kane I probably just add that we obviously have done a lot of investment in the business as it stands anyway and we have got the cricket rights as well you know and other sports contracts that we now have looked out for a significant period of time and it is important that we monetize those and start to push subscriber growth and that will be by a combination of broadcast and these new OTT propositions that we launched. So, we are focused on both of those and we are focused also on cost reductions out there as well. So, there is a major transformation going on across that business. And as Robert alluded to the management team down there that have hit the ground running and doing a great job so far.

Thanks, Kane. Carrie, we will take our next question please.

Thank you. Our next question will be from Eric Pan with JPMorgan.

Good afternoon, guys. Thanks for taking my question. So with the change in the media consolidation rules in Australia, which sort of allow your competitor Fairfax to come together with Nine, would you say you are a seller or acquirer of assets in that market?

I would say we are a focused operator. Susan just mentioned Foxtel and Fox Sports, in that combination we want to make more than the sum of the parts. Their consolidation has given us control of the company in tandem with our partner, Telstra and that will be our absolute focus.

Thank you. Carrie, we will take our next question please.

Thank you. Our next question will be from Brian Han with Morningstar.

Hi. Just a very quick question, the revenue increase from sublicensing Lord of the Rings, is that revenue almost 100% margin and should we be baking those earnings in for the foreseeable future?

No, that’s not 100% margin. So, I think we have said $28 million was the revenue increase and we netted about $21 million.

What you should be baking into the future is that we have an excellent team at HarperCollins led by Brian Murray and that team has become very deft at monetizing one of the most healthy backlists available.

Thank you. Carrie, we will take our next question please.

Next question comes from Raymond Tong and Evans and Partners.

Good morning, Robert and Susan. Just a couple of questions. Firstly, just on the Move revenue, growth has moderated a bit in the quarter, just wanted – can you talk to some of the key areas of investments and how you are sort of thinking in terms of revenue growth going forward? And just on the subscription video services, there is a bit of investment coming up that you have outlined and just wondering how you think about the EBITDA trajectory into the medium-term for that business?

Raymond, we are very optimistic about the potential for continued growth of core revenues at realtor. As Susan mentioned, what you define as core rose 17% year-on-year, but actually the main product within that Connection for Buyers was up 23%. So, that’s still a healthy growth rate. We are not complacent. But on a macro level, there has been slight slowing down in existing home sales in the U.S., but that’s not a given trend given the health of the UK or U.S. economy and you would expect over coming quarters that I am not soothsayer that if the housing market picks up you will see a pickup also in core realtor revenues.

And Raymond, I think just in relation to your second question on Foxtel and our expectations around EBITDA for the coming year, we obviously don’t give our guidance in relation to that, but I think it would be fair to say we have talked about the reinvestment activities that we are planning to do there and we obviously have got the cricket rights that have come in with the cost associated with that. We clearly are going to be launching some new products and platforms that will come out into the marketplace which will start to grow subscribers and push that through. So, we are expecting going forward that there will be a balance of obviously investment with growth coming through and then we would be expecting lesser years to pickup.

Thank you, Raymond. Carrie, we will take our next question please.

Thank you. Our next question will be from Craig Huber from Huber Research Partners.

Yes, hi. I got two quick questions please. What was the circulation revenue percent change with and without currency by region and then also want to ask about the cost for news and information, it looked like it was up about 2% year-over-year. I assume it was closer to flat just for currency, but is there much room here in your guys’ minds or plan here to take out another large chunk of the costs going forward? Thank you.

Maybe Craig I might handle those if I will. So, in relation to Dow Jones, circulation revenues were up 9% growth in local currency as well, News UK circulation revenues were down 1% and in News Australia, circulation revenues were flat, but in relation to that first question. The second question you are right, if you adjust for M&A and other matters, then the costs were flat across news and information services and I think it’s fair to say we have probably got businesses at different growth rates than different parts of the cycle, but Dow Jones will probably see more of an investment going forward. They have got revenue growth obviously they have had revenue growth this year, we are expecting to continue to invest in marketing and acquisition cost as I continue to push those digital subscribers. I think it would be fair to say that News Australia were balancing cost reinvestments with cost out and we do believe that there is work that can be gunned down there and the team is very focused on that. And at News UK, there is indeed still opportunities around cost out there. We would expect those probably to be lesser than the ones we would see in Australia as they continue to reinvest in their digital products over there. So I think it’s a mixed bag across the group that we certainly see more opportunities in front of us.

Thanks, Craig. And just to supplement Susan, Craig, as you mentioned Dow Jones subscription revenue was up 9%, that was actually 10% at the Wall Street Journal. And what you have there is a tremendous base for the potential up-selling of premium specialist content at premium prices. So, our subscription base, while growing faster than the nearest competitor, is also based with a different composition and one with real price elasticity.

Thanks, Craig. Carrie, we will take our next question please.

Thank you. [Operator Instructions] Our next question will be from Andy Levy with Macquarie Securities.

Hi, guys. Thanks. Just one for me on the Foxtel IPO, I was wondering if you can just talk to the license wanting the IPO, Foxtel down the track and what News Corp would be looking to do which its holding in terms of reduce it through their prices, would you be looking at your partner exiting through that process? Thanks.

Look, we can’t go into details about the future per se. All I would articulate is our absolute confidence in our ability to grow revenues, to grow the subscriber base and to grow profitability at the combined company over coming years. That means extra value for the company, but in particular, it will mean extra value for our own business.

Thanks, Andrew. Carrie, we will take our next question.

At this time, I am showing no further questions in the queue. I would like to turn it back over to Mike Florin.

Great. Well, thank you Carrie and thank you all for participating today. Have a great day and we will talk to you soon. Take care.