Yellow Pages Limited’s Mixed Earnings Call Review

Yellow Pages Limited ((TSE:Y)) has held its Q1 earnings call. Read on for the main highlights of the call.

Yellow Pages Limited’s recent earnings call presented a mixed sentiment, reflecting both optimism and challenges. The company reported improvements in revenue trends and an expansion of its sales force. However, it continues to face significant financial pressures, with notable declines in adjusted EBITDA and net income, particularly affecting its digital and print segments. Despite these challenges, the company maintains a robust cash position and announced a dividend, signaling confidence in its financial stability.

Positive Revenue Trend

Yellow Pages Limited reported a favorable bending of the revenue curve for the fifth consecutive quarter. The rate of change in revenue showed improvement compared to the previous quarter, indicating a positive trajectory in the company’s financial performance.

Strong Cash Position

The company maintained a strong cash position, with approximately $49 million as of April 2025, despite regular seasonal disbursements. This financial stability provides a solid foundation for future investments and growth initiatives.

Dividend Declaration

In a move to reward shareholders, the Board declared a dividend of $0.25 per common share, payable on June 16, 2025. This announcement underscores the company’s commitment to returning value to its investors.

Improvement in Revenue Decline Rate

The decline rate of revenues improved compared to the same period last year, thanks to increased new customer acquisitions and stable renewal rates. This improvement highlights the effectiveness of the company’s revenue initiatives.

Sales Force Expansion

Yellow Pages expanded its sales force by 9 employees compared to the previous year. This increase supports the company’s revenue initiatives and reflects its commitment to enhancing customer engagement and sales performance.

Revenue Decline

Total revenues decreased by $4.2 million or 7.6% year-over-year, amounting to $50.8 million for the first quarter. This decline highlights ongoing challenges in the company’s revenue streams.

Digital Revenue Decline

Digital revenues saw a decrease of 6.8% year-over-year, attributed to a reduction in the digital customer count. This decline underscores the need for strategic adjustments in the digital segment.

Print Revenue Decline

Print revenues decreased by 10.5% year-over-year, primarily due to a decrease in the number of print customers. This trend reflects the broader industry shift away from traditional print media.

Adjusted EBITDA Decrease

Adjusted EBITDA decreased by $3.4 million or 22.3% to $11.9 million for the first quarter, with the margin dropping to 23.4% from 27.8% the previous year. This decline highlights the financial pressures facing the company.

Net Income Decrease

Net income fell to $5 million from $8.4 million in the previous year, impacted by lower adjusted EBITDA and increased restructuring charges. This decrease indicates ongoing financial challenges for the company.

Forward-Looking Guidance

Looking ahead, Yellow Pages Limited reported a positive shift in their revenue trajectory for the fifth consecutive quarter. Despite a 7.6% year-over-year decrease in total revenues, this marks an improvement from the previous quarter’s 8.1% decline. The company continues to invest in revenue initiatives, with adjusted EBITDA comprising 23.4% of revenue. The expansion of the sales force and a strong cash position are expected to support future growth.

In summary, Yellow Pages Limited’s earnings call reflected a mixed outlook, with both positive developments and ongoing challenges. The company demonstrated improvements in revenue trends and maintained a strong cash position, yet faced significant declines in adjusted EBITDA and net income. As the company navigates these challenges, its strategic initiatives and financial stability will be crucial in shaping its future performance.