Yellow Pages Ltd T.Y

Alternate Symbol(s): YLWDF

Consumer Cyclical Media - Diversified

Yellow Pages Limited is a Canadian digital media and marketing company. The Company offers targeted tools to local businesses, national brands and consumers, allowing them to interact and transact within the digital economy. It offers small and medium-sized enterprises (SMEs) across Canada full-serve access to a comprehensive suite of digital and traditional marketing solutions, such as online and mobile priority placement on its digital media properties, content syndication, search engine solutions, Website fulfillment, social media campaign management, digital display advertising, video production, e-commerce solutions, as well as print advertising. Its media properties, primarily desktop, mobile and print, continue to serve as effective marketplaces for Canadian local merchants, brands and consumers. The Company holds local online properties, including YP.ca, Canada411 and 411.ca. It also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print directories.

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Yellow Pages Ltd

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Post by TheEgyptianon Feb 14, 2019 3:59am

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Post# 29362446

2018 Results

There is no doubt Mr Echert strategy is leading to a lean run company. Here are some numbers from the management discussions:

- number of employees 1000, down from 2700
that's quite a reduction in salaries, benefits, etc...
- financial charges $54M
started 2017 with $415M in debt ($315M + 100M)
ended 2018 in $263M (167M + 96M)
there is a potential. to eliminate $100M in 2019
- restructure charges $16M
expect much less in 2019
-Digital revenues decreased 13.9% year-over-year, or 13.6% excluding the sale of RedFlagDeals.comTM, and amounted to $348.9 million for the year ended December 31, 2018, compared to $405.2 million for the same period last year. Digital revenues were adversely impacted by a decline in the number of digital customers offset in part by a higher spend per customer. The lower digital customer count is attributable to both a lower level of customer acquisition in 2018, driven in part by our focus on profitability, and by higher churn, mainly caused by the surge in customer acquisition in 2016 and 2017 of customers purchasing low end solutions which typically have higher churn rates.

Print revenues decreased by 22.8% year-over-year to $127.9 million for the year ended December 31, 2018. The results were adversely impacted by a decline in the number of print customers and lower spend per customer

Now that is the main problem, declining digital and print revenue. The print revenue is expected to decline but I am sure the company is focussing on stabilizing the digital revenue while maintaining a high margin.

- earning per share was $3, i.e P/E=2 ridiculous

I am not sure what is the new strategy for Yellow Pages but at some point, the debt will be eliminated, revenue improves and with just 1000 employees the cost is manageable.
As for the share price, it is a puzzle why no interest from the public? eventually, someone will realize the value and the cash flow of the company. I am very patient, still, 4 years for the warrants to expire.