Lastly, and most importantly, we already know this and it's sufficiently priced in. Additionally, the company has forecasted that they will continue to experience some margin pressure due to revenue decline, but continued optimization in labor will partially offset this. Although the EBITDA margin slightly contracted, they were still able to increase Net income. Unfortunately, the company just started breaking out the revenue streams last year, so there isn't enough data to look at a noticeable trend, but we can derive this from the latest earnings call, which says that the high-margin digital business makes up 55% of their digital revenue.Īdditionally, from the CAPEX / OPEX side, they've done a great job of decreasing both of these and as a result, increased EBITDA margins over the past few years. Our Business Yellow Pages, a leading digital media and marketing solutions provider in Canada, offers targeted tools to local businesses, national brands and consumers allowing them to interact and transact within today’s digital economy. Print seems to be decreasing much faster than digital which is great because digital is a similar-margin business and the company is now describing itself as a digital business: The Revenue can be broken down into two different businesses: Digital and Print. They attribute these improvements to better spending per customer in digital, increased renewal rates as well as improvements in customer claims. In fact, Y has reported 9 consecutive quarters, and 14 of 16 quarters on bending the curve (slowing revenue decline). Since taking over, he has really helped to slow the rate of revenue decline and to decrease operating expenses as a percentage of revenue significantly.
It seems like he's done a great job since taking over, and has extensive experience dealing with turnarounds according to the press release of his CEO announcement. This phrase can be attributed to the new CEO David Alan Eckert who joined on September 15, 2017.
In fact, management refers to it as "Bending the Curve". However, on a percentage basis, the revenue decline is slowing dramatically, and this is the key metric that management is focused on. It is a melting ice cube that has seen revenues decline and probably will see revenues continue to approach zero. Yellow Pages Limited is a "legacy" business that operates in a very competitive industry, and is in structural decline. To be clear, this is a very unsexy business that operates in a niche market. It seems like the company's north star is becoming the leader in Canada for small to medium size business digital advertising and advertising analytics. Additionally, in the digital advertising space, they are competing against the behemoths like Google and Facebook. Yellow Page's print business operates in a very competitive environment with local newspapers, magazines, and digital advertisers. We all remember these from 30 years ago, but this is no longer the focal point of the business. Yellow Pages Print - The Corporation is the official directory publisher for Bell, Telus, Bell Aliant, MTS Allstream, and a number of other incumbent telephone companies. In my opinion this is the only asset they have that I believe has a real competitive edge.Ĥ. This asset is actually why I believe the company has a future. YellowPages for Business - A tool that allows SMEs to manage and sync their marketing spend, marketing results, and analytics in a single platform. It's like the old yellow pages books that you remember looking through 25 years ago, but online.ģ. Canada411.ca - This is essentially an online phonebook. It's a nice platform for SMEs to advertise their business, especially at a local level.Ģ. YP.CA - This is essentially a combination of Angie's List and Yelp and integrates trip advisor reviews. The company's media assets include desktop, mobile, and print.
REINVENTS YELLOW PAGES FULL
Yellow Pages Limited ( TSX: Y:CA) offers small and medium-sized enterprises (SMEs) across Canada a full suite of digital and traditional marketing solutions.
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