Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Yellow Pages Ltd (YLWDF, Financial) reported a favorable bending of the revenue curve for the third consecutive quarter, indicating progress toward revenue stability.
- The company achieved a 36% increase in new customer acquisitions compared to the same quarter last year, suggesting strong growth potential.
- Adjusted EBITDA for the quarter was on track at 23.8% of revenue, demonstrating solid profitability despite ongoing investments.
- Cash on hand grew to approximately $43 million by the end of October, reflecting strong cash generation.
- The Board declared a dividend of $0.25 per common share, indicating confidence in the company's financial health and commitment to returning value to shareholders.
Negative Points
- Revenues decreased by $5.5 million or 9.4% year over year, primarily due to declines in higher-margin digital media and print products.
- Digital revenues fell by 8.7% year over year, driven by a decrease in digital customer count and reduced spend per customer.
- Print revenues decreased by 12.4% year over year, mainly due to a decline in the number of print customers.
- Adjusted EBITDA decreased by $5.4 million or 30.1% year over year, with margins dropping to 23.8% from 30.9% in the same period last year.
- Net income decreased to $6.3 million for the quarter, down from $10.1 million in the same period last year, due to lower adjusted EBITDA.
Q & A Highlights
Q: Can you provide an overview of Yellow Pages' financial performance for the third quarter of 2024?
A: David Eckert, President and CEO, highlighted that the third quarter was positive, with progress toward revenue stability and strong profitability. Revenue decline improved compared to previous quarters, and new customer acquisitions increased by 36% year-over-year. Adjusted EBITDA was 23.8% of revenue, and cash on hand grew to approximately $43 million.
Q: What were the main factors affecting revenue and profitability in the third quarter?
A: Franco Sciannamblo, CFO, explained that revenues decreased by 9.4% year-over-year due to declines in digital media, print products, and digital services. Adjusted EBITDA decreased by 30.1% due to lower revenues, product mix changes, and investments in telesales, partially offset by price increases and cost optimizations.
Q: How did digital and print revenues perform during the quarter?
A: Digital revenues decreased by 8.7% year-over-year, mainly due to a decline in digital customer count and spend per customer. Print revenues decreased by 12.4%, driven by a reduction in print customers, although spend per customer improved due to price increases.
Q: What measures are being taken to address the pension plan deficit?
A: The company made $1.5 million in voluntary incremental payments toward the pension plan's wind-up deficit during the quarter, consistent with the deficit reduction plan announced in 2021.
Q: What is the status of the company's cash position and dividend declaration?
A: As of the end of October, Yellow Pages had approximately $43 million in cash on hand. The Board declared a dividend of $0.25 per common share, payable on December 16, 2024, to shareholders of record as of November 27, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
