Welcome!

Machine Learning Authors: Ed Featherston, Destiny Bertucci, Liz McMillan, Elizabeth White, Dan Blacharski

News Feed Item

Yellow Media Limited Reports Second Quarter 2014 Financial Results

MONTREAL, QUEBEC -- (Marketwired) -- 08/06/14 -- Yellow Media Limited (TSX: Y)

--  Digital revenues across the Company's core YPG operations grew 10.8%
    year-over-year during the second quarter of 2014.

--  Continued acceleration in the annual run-rate of customer acquisition,
    as YPG acquires 18,400 new customers during the twelve-month period
    ended June 30, 2014 as compared to 15,300 for the same period last year.

--  Total digital visits across the YP, RedFlagDeals and ShopWise desktop
    and mobile properties reach 102.4 million during the second quarter of
    2014, up from 100.1 million visits during the same period last year.

--  Strong free cash flow generation of $42.1 million during the second
    quarter of 2014, as compared to $68.5 million during the same period
    last year.

--  The Company records net earnings of $27.6 million during the second
    quarter of 2014, which compares to $50.3 million for the same period
    last year.

Yellow Media Limited (TSX: Y) (the "Company" or "Yellow Media") released its operational and financial results today for the second quarter ended June 30, 2014. The Company continues to execute upon the Return to Growth Plan (the "Plan"), a strategy dedicated at reacquiring revenue growth by helping Yellow Media gain a leadership position within Canada's local digital advertising market.

"The Return to Growth Plan supports our mission of championing neighborhood economies by allowing us to strengthen the relationships we foster between businesses and consumers," said Julien Billot, President and Chief Executive Officer of Yellow Media. "Completion of our Return to Growth Plan will provide Yellow Media with the resources required to enter new digital businesses and, ultimately, meet its long-term objective of becoming Canada's leading local digital company."

Second Quarter 2014 Financial Results

Revenues for the second quarter of 2014 decreased to $220.6 million, representing a 9.3% year-over-year decline. Consolidated revenues continue to be negatively impacted by ongoing declines in print revenues. For the three-month period ended June 30, 2014, print revenues decreased 22.5% year-over-year to reach $112.2 million, in line with prior quarters.

For the quarter ended June 30, 2014, digital revenues across our core YPG operations, which exclude the impact of Mediative, 411 Local Search Corp. ("411") and Wall2Wall, increased by 10.8% year-over-year. On a consolidated basis, digital revenues reached $108.4 million during the second quarter of 2014, growing 10.1% from the same period last year. Digital revenues represented 49.1% of total revenues for the second quarter of 2014, up from 40.5% during the same period in 2013.

Growth in digital revenues continues to be driven by the active migration of traditional media customers towards digital products and services. As at June 30, 2014, 63% of YPG customers were purchasing digital products, as compared to 61% the year prior. Digital revenue growth is also supported by the continued adoption of the Yellow Pages™ 360 degrees Solution among YPG's existing customer base. The customer penetration of the Yellow Pages 360 degrees Solution, which is defined as the percentage of YPG customers who purchase three product categories or more, grew to 32.9% as at June 30, 2014 compared to 21.1% for the same period last year.

EBITDA decreased to $81.3 million during the second quarter of 2014, as compared to $107.2 million the year prior. EBITDA remains adversely impacted by print revenue pressure and a lower EBITDA margin. The EBITDA margin decreased to 36.8% for the three-month period ended June 30, 2014, as compared to 44.1% for the same period last year. In addition to lower print revenues, EBITDA margins were adversely impacted by investments related to the Return to Growth Plan and employee related expenses.

For the second quarter ended June 30, 2014, the Company recorded net earnings of $27.6 million and basic earnings per share of $1.01. This compares to net earnings of $50.3 million and basic earnings per share of $1.81 for the same period last year. The decrease is mainly explained by lower EBITDA and a restructuring and special charge incurred during the second quarter of 2014.

Free cash flow during the second quarter of 2014 totaled $42.1 million, as compared to $68.5 million during the same period last year. This decline results mainly from lower EBITDA, a more stable working capital and higher income taxes paid in 2014, as the Company was not required to pay income tax installments in 2013. Following a $73.5 million mandatory redemption payment made on the senior secured notes on June 2, 2014, net debt totaled $515.7 million as at June 30, 2014, down from $533.1 million as at December 31, 2013.

"Successful execution of the Return to Growth Plan will strengthen the Company's financial profile and deliver long-term, sustainable value to shareholders," said Ginette Maille, Chief Financial Officer of Yellow Media. "The investments underlying the Plan are focused on returning Yellow Media to consolidated revenue and EBITDA growth by 2018, while also generating the free cash flow required to significantly delever the balance sheet over the next four years."

Operational Update

"The Return to Growth Plan is aimed at strengthening Yellow Media's relationship with consumers and local businesses," said Billot. "Having the right strategy is critical, and the Company will continue investing in growing the digital awareness of the Yellow Pages brand, enhancing the user experience across its media assets and delivering an improved end-to-end customer journey in order to grow customer acquisition and, ultimately, return Yellow Media to revenue and profitability growth."

Extending our Brand Promise

--  Yellow Media ran national and local campaigns to promote the download
    and use of the YP mobile application. A national television and digital
    campaign was launched in April 2014 to highlight the improved content
    and search functionalities available on the YP mobile application.
    Increased adoption of the YP mobile application was further supported
    through an extensive local, multimedia advertising initiative across
    Canada's largest urban markets in June and July 2014.

--  The Company's national and local campaigns contributed positively to the
    usage of the YP mobile application, with average weekly downloads and
    visits having increased by 65% and 20%, respectively, when compared to
    pre-campaign periods.

--  The Company launched radio and digital advertising campaigns in Montreal
    and Calgary to introduce prospective customers to its entry-level
    Booster Pack digital solution. To further promote customer acquisition,
    Digital Seminar Series were launched in Alberta and Atlantic Canada to
    educate small business owners on digital trends and strategies, as well
    as the solutions offered by YPG to help them champion local digital
    marketing.

Strengthening our Media Assets

--  Total digital visits, which measures the number of visits made across
    the YP, RedFlagDeals and ShopWise desktop and mobile properties, reached
    102.4 million during the second quarter of 2014. This compares to 100.1
    million visits for the same period last year.

--  The YP mobile application received various acknowledgments on the App
    Store, including "Editor's Choice" and "Best New App" in May 2014, "Best
    of May 2014" and "Top Canadian-Made App" in June 2014. These
    recognitions followed the release of an enhanced version of the YP
    mobile application on the iPhone and iPad, providing users with an
    improved user interface, more relevant search results, a richer database
    of local business information and quicker search response times.

--  The Company delivered a richer search experience on its ShopWise mobile
    application, introducing personalization features that allow users to
    select preferred categories of deals to appear on the homepage. A
    version of the RedFlagDeals.com mobile application was also officially
    launched and made available on the Android platform.

Enhancing our Go-to-Market Strategy

a) Promoting Customer Acquisition

--  The rate of customer acquisition continued to improve, with customer
    acquisition for the twelve-month period ended June 30, 2014 having
    totaled 18,400, up from 15,300 during the same period last year and
    16,500 for the twelve-month period ended March 31, 2014. Total customer
    count was 265,000 as at June 30, 2014, compared to 291,000 at the end of
    the same period last year.

--  Promoted by an acceleration in customer acquisition, digital-only
    customers increased to 29,400 as at June 30, 2014, compared to 19,700 at
    the same period last year and 26,100 as at March 31, 2014.

--  Yellow Media acquired the remaining 70% interest of 411 for a purchase
    price of $22.7 million, net of cash acquired of $3.6 million. The
    acquisition results from the exercise of a put option by the other
    shareholders of 411, requiring the Company to acquire the remaining 70%
    interest of 411. 411 is the operator of 411.ca, an online search engine
    dedicated to finding people and local businesses in Canada. With a sales
    force of 60 call center representatives servicing approximately 15,000
    digital customers nationwide, 411 holds a proven track record in lead
    generation, lead conversion and customer acquisition. The acquisition of
    411 complements Yellow Media's Return to Growth Plan, allowing the
    Company to leverage the expertise of 411's sales team to best support
    its customer acquisition efforts.

b) Promoting Customer Retention

--  YPG experienced a customer renewal rate of 85% over the twelve-month
    period ended June 30, 2014, remaining stable versus the same period last
    year.

--  In an effort to improve the customer experience and develop enhanced
    customer-facing tools, the Company launched a redesigned version of its
    B2B 360 degrees Solution website entitled the 360 degrees Business
    Centre (http://businesscentre.yp.ca/). The 360 degrees Business Centre
    delivers a simplified architecture and more appealing design, making it
    easier for existing and prospective customers to be informed on YPG's
    digital products and services, claim their listings and book
    consultations.

--  A new version of Yellow Pages Analytics was developed, now featuring an
    easier-to-navigate interface, enhanced performance monitoring of
    customers' marketing activities, as well as the introduction of a
    Revenue Calculator to provide insight as to the contacts and revenues
    generated from customers' respective marketing campaigns.

Improving Business Efficiencies

--  In the context of a decline in print revenues, Yellow Media is presently
    consolidating and replacing its legacy print publishing systems, as well
    as reviewing its existing national print distribution model, to protect
    the profitability of the print platform. The Company is also enhancing
    core platforms and infrastructure, having consolidated eight of its IT
    data centers and replaced legacy telephony systems and exchange servers,
    to further promote cost savings across the organization.

Investor Conference Call

Yellow Media Limited will hold an analyst and media call at 1:00 p.m. (Eastern Time) on August 6, 2014 to discuss the second quarter 2014 results. The call may be accessed by dialing (416) 340-2218 within the Toronto area, or 1 866 225-2055 outside of Toronto.

The call will be simultaneously webcast on the Company's website at http://www.ypg.com/en/investors/financial-reports/2014/quarterly-reports/second-quarter-webcast.

The conference call will be archived in the Investors section of the site at www.ypg.com.

A playback of the call can also be accessed from August 6 to August 13, 2014 by dialing (905) 694-9451 within the Toronto area, or 1 800 408-3053 outside Toronto.

The conference passcode is 1997641.

About Yellow Media Limited

Yellow Media Limited (TSX: Y) is a Canadian digital and print media company, offering businesses comprehensive media solutions to meet their key marketing objectives and providing consumers with platforms to access reliable local business information. By helping local businesses foster stronger relationships with their consumers through its various media, the Company encourages the growth of thriving neighbourhood economies. Yellow Media holds some of Canada's leading local search properties and publications including YP.ca™, Canada411.ca and RedFlagDeals.com™, the YP, ShopWise and RedFlagDeals mobile applications and Yellow Pages™ print directories. Yellow Media is also a leader in national digital advertising through Mediative, a division of Yellow Pages Group devoted to digital marketing and performance media services for national-scale agencies and customers. For more information, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Company. These statements are forward-looking as they are based on our current expectations, as at August 6, 2014, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 6 of our August 6, 2014 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

Financial Highlights
(in thousands of Canadian dollars - except share information)


----------------------------------------------------------------------------
                                For the three-month       For the six-month
                             periods ended June 30,  periods ended June 30,
Yellow Media Limited               2014        2013        2014        2013
----------------------------------------------------------------------------

Revenues                       $220,579    $243,183    $443,782    $496,460
Income from operations          $56,331     $92,455    $129,633    $188,050
Net earnings                    $27,551     $50,326     $66,773    $103,791
Basic earnings per share
 attributable to common
 shareholders                     $1.01       $1.81       $2.45       $3.71
Cash flow from operating
 activities                     $57,823     $86,457     $68,733    $173,045
----------------------------------------------------------------------------
EBITDA(1)                       $81,261    $107,234    $175,882    $222,712
EBITDA margin(1)                   36.8%       44.1%       39.6%       44.9%
----------------------------------------------------------------------------
Weighted average number of
 common shares outstanding   27,188,087  27,872,822  27,302,919  27,913,722
----------------------------------------------------------------------------

Non-IFRS Measures(1)

In order to provide a better understanding of the results, the Company uses the term EBITDA, defined as income from operations before depreciation and amortization and restructuring and special charges. Management believes this measure is reflective of ongoing operations. This term is not a performance measure defined under IFRS. EBITDA does not have any standardized meaning and are therefore not likely to be comparable to similar measures used by other publicly traded companies. Management believes EBITDA to be an important measure.

Contacts:
Investor Relations
Amanda Di Gironimo
Senior Manager, Corporate Finance and Investor Relations
(514) 934-2680
[email protected]

Media
Fiona Story
Senior Manager, Public Relations
(514) 934-2672
[email protected]
www.ypg.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...