|By Marketwired .||
|August 6, 2014 07:00 AM EDT||
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."
"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 ----------------------------------------------------------------------------
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.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
Dec. 7, 2016 11:01 AM EST
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 7, 2016 10:30 AM EST Reads: 1,700
Unsecured IoT devices were used to launch crippling DDOS attacks in October 2016, targeting services such as Twitter, Spotify, and GitHub. Subsequent testimony to Congress about potential attacks on office buildings, schools, and hospitals raised the possibility for the IoT to harm and even kill people. What should be done? Does the government need to intervene? This panel at @ThingExpo New York brings together leading IoT and security experts to discuss this very serious topic.
Dec. 7, 2016 10:00 AM EST Reads: 385
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 sett...
Dec. 7, 2016 09:15 AM EST Reads: 7,240
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 7, 2016 08:30 AM EST Reads: 1,862
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 7, 2016 08:15 AM EST Reads: 497
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
Dec. 7, 2016 08:00 AM EST Reads: 446
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Dec. 7, 2016 07:45 AM EST Reads: 833
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 7, 2016 07:30 AM EST Reads: 827
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Dec. 7, 2016 06:45 AM EST Reads: 2,000
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 05:15 AM EST Reads: 1,075
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
Dec. 7, 2016 02:00 AM EST Reads: 664
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Dec. 7, 2016 01:45 AM EST Reads: 6,168
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 7, 2016 01:00 AM EST Reads: 1,620
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Dec. 7, 2016 12:45 AM EST Reads: 1,250
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Dec. 7, 2016 12:15 AM EST Reads: 1,381
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 7, 2016 12:15 AM EST Reads: 1,045
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 7, 2016 12:00 AM EST Reads: 1,286
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 6, 2016 11:45 PM EST Reads: 769
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 6, 2016 10:15 PM EST Reads: 1,165