Yellow Media recovering from restructuring into digital firm

The Canadian publisher of the Yellow Pages directories is showing signs of financial recovery after months of restructuring to adapt the century-old business to the digital age. Yellow Media (TSX:YLO) said Tuesday it had $24 million of net earnings in the third quarter, or four cents per share.

MONTREAL — The Canadian publisher of the Yellow Pages directories is showing signs of financial recovery after months of restructuring to adapt the century-old business to the digital age.

Yellow Media (TSX:YLO) said Tuesday it had $24 million of net earnings in the third quarter, or four cents per share.

The profit was a big turnaround from the same time last year when Yellow Media took a huge writedown on assets that resulted in a net loss of $2.8 billion.

“Overall, we remain committed to creating an industry- leading media and marketing solutions company,” chief executive Marc Tellier told financial analysts on a conference call.

“As reflected by our operation initiatives and results to date, Yellow Media continues to make progress on its business transformation.”

But revenues fell 17 per cent year over year to $267.7 million from $323.4 million as a result of lower print revenues, discontinued directories and the sale of an online classified ad site in November 2011.

Yellow Media said its adjusted earnings were a better measure of its ongoing business because they exclude a number of one-time items.

Adjusted earnings were $77.1 million or 15 cents per share in the latest quarter. That compared with $69.2 million or 14 cents per share in adjusted earnings last year.

Analysts polled by Thomson Reuters had estimated 10 cents in earnings per share and revenue of $264.47 million.

The company — which printed its first directory in 1908 when it was still part of Bell Canada — has been transforming itself in recent years as consumers find information about local businesses online and on mobile devices.

Online revenues for the quarter were $92 million compared with $87.3 million last year, representing growth of 5.3 per cent year over year, Yellow Media said.

Tellier noted a recapitalization plan to pay down $1.8 billion in debt had been approved by Yellow Media’s debtholders, shareholders and convertible debenture holders. A final ruling on the plan by the Quebec Superior Court is pending.

“We need to implement the proposed recapitalization, which will provide the company with the financial flexibility critical in supporting its business transformation,” he said.

Last winter, Yellow Media announced a shakeup in its board of directors and brought in experts in restructuring and corporate finance to help deal with its heavy debt. The company also cancelled its shareholder dividend.

Tellier reiterated that Yellow Media’s transition to a digital company from a print company will take time.

But he noted a year-over-year increase in downloads of Yellow Media’s mobile application to 4.7 million from about three million.

“Whether it be online or through their mobile devices, consumers are constantly searching for local information to make smarter, more informed shopping decisions within their neighbourhood or any neighbourhood they might find themselves in.”

Yellow Media builds websites for small- and medium-sized businesses and provides such services as email marketing, search engine marketing and video production.

Tellier said Yellow Media’s 360 Solutions, which includes online, mobile and print media advertising and website services, attracted more advertisers choosing three or more of its services. It showed year-over-year growth of 14 per cent in the quarter compared with 4.1 per cent growth in the year-earlier period.

Yellow Media owns a number of publications including Yellow Pages print directories, YellowPages.ca, Canada411.ca and RedFlagDeals.com.

Shares in Yellow Media were up half a cent at eight cents in late-day trading Tuesday on the Toronto Stock Exchange.

Just Posted

Red Deer massage therapist not guilty of sexual assault

Judge said he had reasonable doubt and must acquit

Update: Nine dead, 16 injured in van incident authorities call a horrific attack

TORONTO — Nine people died and 16 others were injured when a… Continue reading

Watch: Flood watch remains for Waskasoo Creek

Red Deer crews monitoring creek

Warm temperatures this week for Red Deer

23 C forecast for Saturday

WATCH: Central Alberta dancers take over Red Deer College with their moves

Danceworks Central Alberta Dance Festival is now in its 38th year

Andersen leads Maple Leafs in win over Bruins to force Game 7

Maple Leafs 3 Bruins 1 (Best of seven game series tied at… Continue reading

As Osoyoos Indian Band flourishes, so too does Okanagan’s wine tourism

Indigenous practices have driven growth of South Okanagan’s wine history and agricultural influence

Anti-straw movement should consider people with disabilities, advocates say

TORONTO — Some Canadians who rely on plastic straws are calling on… Continue reading

Doctors must get better at diagnosing patients with darker skin: Dermatologists

TORONTO — About a month ago, a frustrated Emma Schmidt turned to… Continue reading

Loblaw Companies tax court trial over Barbadian banking subsidiary starts

TORONTO — A tax court trial involving Loblaw Companies Ltd. and allegations… Continue reading

As trial winds down, DA downplays Cosby travel records

NORRISTOWN, Pa. — Prosecutors highlighted gaps in Bill Cosby’s travel records on… Continue reading

Summer Movie Preview: Hollywood roars back into action

LOS ANGELES — Summer starts early this year in Hollywood with the… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month