Yellow Pages Limited ((TSE:Y)) has held its Q4 earnings call. Read on for the main highlights of the call.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
During Yellow Pages Limited’s latest earnings call, the sentiment was a mix of cautious optimism and concern. While there were positive developments like the improvement in revenue decrease rates and increased customer acquisitions, the company continues to face financial challenges due to significant declines in digital and print revenues, a sharp drop in adjusted EBITDA, and a decrease in net income. These factors, coupled with workforce reductions, paint a picture of a company navigating through a difficult financial landscape yet showing signs of potential improvement.
Improvement in Revenue Decrease Rate
The company reported a year-over-year revenue decrease of 8.1% for Q4 2024, totaling $51.4 million. This marks an improvement from the previous quarter’s 9.4% decline, suggesting that efforts to stabilize revenue are showing some early success.
Increase in New Customer Acquisitions
Yellow Pages Limited saw a 6% rise in new customer acquisitions compared to the same quarter last year, and a notable 28% increase for the year overall. This growth in customer base is a positive indicator for future revenue potential.
Completion of Pension Plan Payments
The company completed its voluntary pension plan payments, achieving a wind-up ratio of over 95%. This move, approved by the Board, reflects a strategic effort to de-risk the pension plan and secure financial stability.
Dividend Declaration
Yellow Pages declared a dividend of $0.25 per common share, payable on March 17, 2025. This decision underscores the Board’s confidence in the company’s current financial health and its future prospects.
Share Price Increase
The company’s share price saw a significant increase of 23% during the fourth quarter, a testament to investor confidence and positive market perception amidst ongoing financial adjustments.
Revenue Decline in Digital and Print Products
Despite some improvements, digital revenues fell by 7.2% and print revenues by 11.5% year-over-year for Q4 2024. These declines highlight ongoing challenges in the company’s core business areas.
Significant Decrease in Adjusted EBITDA
Adjusted EBITDA took a hit, dropping by 49.3% to $8.2 million for Q4 2024. The margin also decreased to 16% from 29.1% the previous year, indicating significant pressure on profitability.
Net Income Decline
The company’s net income for Q4 2024 decreased to $2.7 million from $12.2 million in the same period last year, reflecting the ongoing financial hurdles.
Workforce Reduction
The workforce was reduced by 10%, with the current employee count at 565 compared to 627 last year. This reduction is part of the company’s broader cost-cutting measures amid financial restructuring.
Forward-Looking Guidance
Looking ahead, Yellow Pages Limited provided guidance that reflects both challenges and strategic initiatives. Despite the year-over-year revenue decline, the company is buoyed by a favorable trend in slowing revenue decreases and rising customer acquisitions. Adjusted EBITDA margins have been impacted by stock-based compensation adjustments, yet the company maintains a strong cash balance of approximately $49 million. With voluntary pension contributions completed and a dividend declared, the company remains cautiously optimistic about its financial position.
In summary, Yellow Pages Limited’s earnings call presented a mixed outlook, with cautious optimism tempered by significant financial challenges. While there are positive developments in customer acquisition and pension plan de-risking, the declines in revenue and profitability remain pressing concerns. Nonetheless, the company’s strategic measures and market confidence as reflected in share price gains suggest potential for future stabilization.
