Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Yellow Pages Ltd (YLWDF) Q2 2024 Earnings Call Highlights: Navigating Revenue Declines with ...

In This Article:

  • Total Revenue: $55.8 million, a decrease of 11% year-over-year.

  • Digital Revenue: $43.8 million, a decrease of 10.2% year-over-year.

  • Print Revenue: $12.1 million, a decrease of 13.6% year-over-year.

  • Adjusted EBITDA: $14.8 million, a decrease of 32.7% year-over-year.

  • Adjusted EBITDA Margin: 26.5%, down from 35% in the same period last year.

  • Net Income: $7.6 million, down from $12.7 million in the same period last year.

  • Cash on Hand: $34 million at the end of July.

  • Dividend: $0.25 per common share, payable on September 16, 2024.

  • Workforce: 603 employees as of June 30, a decrease from 639 the previous year.

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) 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.