Release Date: August 07, 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 second consecutive quarter, indicating improved revenue trends.
- The company achieved a 17% increase in new account gains compared to the previous quarter, showcasing effective sales strategies.
- Adjusted EBITDA for the quarter was 26.5% of revenue, reflecting solid profitability despite ongoing investments.
- The company maintained a healthy cash balance of approximately $34 million at the end of July, demonstrating strong cash generation.
- A dividend of $0.25 per common share was declared, indicating confidence in financial stability and shareholder returns.
Negative Points
- Total revenues decreased by $6.9 million or 11% year-over-year, primarily due to declines in digital media and print products.
- Digital revenues fell by 10.2% year-over-year, driven by a decrease in digital customer count and reduced spend per customer.
- Print revenues decreased by 13.6% year-over-year, attributed to a decline in the number of print customers.
- Adjusted EBITDA decreased by $7.2 million or 32.7% year-over-year, impacted by lower revenue and increased operating expenses.
- Net income dropped to $7.6 million for the second quarter, down from $12.7 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 second quarter of 2024?
A: David Eckert, President and CEO, highlighted that the company is pleased with its second-quarter results, showing progress toward revenue stability, good profitability, and a healthy cash balance despite economic headwinds. The company reported a favorable bending of the revenue curve, with a 17% increase in new accounts compared to the previous quarter. Adjusted EBITDA was 26.5% of revenue, and cash on hand was approximately $34 million at the end of July.
Q: What were the main factors contributing to the year-over-year revenue decline?
A: Franco Sciannamblo, CFO, explained that total revenues decreased by 11% year-over-year, mainly due to declines in higher-margin digital media and print products, and to a lesser extent, lower-margin digital services products. The decline was attributed to a decrease in digital customer count and spend per customer, as well as a decrease in the number of print customers, although spend per customer increased due to price hikes.
Q: How did the adjusted EBITDA and margins perform in the second quarter?
A: Adjusted EBITDA decreased by 32.7% year-over-year to $14.8 million, with the margin dropping to 26.5% from 35% in the same period last year. This was due to lower revenue, changes in product mix, investments in telesales capacity, and increased IT expenses. These were partially offset by price increases and cost optimizations.
Q: What is the status of Yellow Pages' cash position and dividend declaration?
A: The company maintained a strong cash position with $34 million on hand at the end of July. The Board declared a dividend of $0.25 per common share, payable on September 16, 2024, to shareholders of record as of August 26, 2024.
Q: Were there any questions from analysts during the earnings call?
A: No questions were raised by analysts during the call. David Eckert expressed gratitude for the support and looked forward to the next meeting in 90 days.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
