Yellow Pages Limited ((TSE:Y)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Yellow Pages Limited highlighted a mixed sentiment, balancing positive financial management with challenges in revenue and net income. The company demonstrated strong cash reserves and maintained its dividend, yet faced significant hurdles due to external factors like labor disruptions.
Adjusted EBITDA Performance
During the earnings call, Yellow Pages Limited reported that its Adjusted EBITDA for the quarter stood at 20.6% of revenue. This performance was achieved despite facing revenue pressures and changes in the product mix, showcasing the company’s ability to manage its operations efficiently under challenging conditions.
Cash Balance and Dividend Declaration
The company ended October with a robust cash balance of approximately $59 million. In a move to reward shareholders, Yellow Pages declared a dividend of $0.25 per common share, scheduled for December 15, 2025. This decision underscores the company’s commitment to maintaining shareholder value even amidst financial pressures.
Pension Plan Contribution
Yellow Pages Limited completed a $2 million voluntary cash contribution to its defined benefit pension plan. This contribution aligns with the company’s strategic financial commitments, reflecting its dedication to long-term financial health and stability.
Revenue Decline
The earnings call revealed an 8.1% year-over-year decline in total revenues, amounting to $48.3 million. This decrease was primarily due to declines in higher-margin digital media and print products, indicating significant challenges in the company’s core revenue streams.
Digital and Print Revenue Challenges
Digital revenues saw a 6.2% year-over-year decrease, while print revenues dropped by 16.3%. The Canada Post labor disruption notably impacted print revenues, deferring approximately $0.5 million and exacerbating the revenue decline for the quarter.
Net Income Decrease
Net income for the third quarter of 2025 decreased to $4 million, compared to $6.3 million in the same period last year. This decline was driven by lower adjusted EBITDA and increased restructuring and financial charges, highlighting the financial challenges faced by the company.
Forward-Looking Guidance
Looking ahead, Yellow Pages Limited remains optimistic about its strategic positioning despite the current revenue pressures. The company anticipates overcoming the challenges posed by external factors such as labor disruptions. With a healthy cash balance and strategic financial commitments, Yellow Pages is well-positioned to navigate future market conditions.
In conclusion, the earnings call for Yellow Pages Limited presented a balanced view of the company’s financial health. While strong cash reserves and dividend maintenance were positive highlights, declining revenues and net income due to external disruptions posed significant challenges. The company remains optimistic about its future, focusing on strategic positioning and financial stability.