Yellow Pages Limited De-Risks Pension Plan with Annuity Purchase

The latest announcement is out from Yellow Pages ( (TSE:Y) ).

Yellow Pages Limited has announced the purchase of group annuity contracts from BMO Life Assurance Company to transfer approximately $210 million of its defined benefit pension plan obligations. This strategic move is intended to de-risk the company’s pension plan by reducing its obligations by about 50%, while ensuring pensioners continue to receive equivalent benefits. The transaction is expected to strengthen Yellow Pages’ balance sheet and allow the company to focus on revenue-enhancing activities. Despite a non-cash net settlement loss anticipated in Q2 2025, the company plans to contribute an additional $4 million to the pension plan by June 2026.

The most recent analyst rating on (TSE:Y) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Yellow Pages stock, see the TSE:Y Stock Forecast page.

Spark’s Take on TSE:Y Stock

According to Spark, TipRanks’ AI Analyst, TSE:Y is a Outperform.

Yellow Pages’ stock is underpinned by strong financial management and an attractive valuation due to its low P/E ratio and high dividend yield. However, ongoing revenue declines and decreases in adjusted EBITDA and net income present risks. Positive revenue trend improvements and strategic leadership changes offer potential for future stabilization and growth.

To see Spark’s full report on TSE:Y stock, click here.

More about Yellow Pages

Yellow Pages Limited is a Canadian digital media and marketing company that facilitates interactions and transactions in the local economy. It operates leading local online properties such as YP.ca, Canada411, and 411.ca, along with mobile applications and print directories.

Average Trading Volume: 4,356

Technical Sentiment Signal: Buy

Current Market Cap: C$153.9M

For detailed information about Y stock, go to TipRanks’ Stock Analysis page.