Sunday, December 21st2.3°C
24563
23664

Yellow Media posts lower Q2 profits as print revenues weaken further

MONTREAL - Yellow Media Ltd. (TSX:Y), the publisher of the Yellow Pages directories, reported lower second-quarter results due to declining print revenues.

Profits for the Montreal-based company dropped 45 per cent in the second quarter as it struggled to create a profitable niche for itself within Canada's local digital advertising market.

Net earnings fell to $27.6 million, or $1.01 per share, compared to $50.3 million or $1.81 per share a year ago.

Revenues slid 9.3 per cent to $220.6 million from $243.2 million a year earlier, mainly from continued weakness in its print operations.

But while print revenues were down 22.5 per cent to $112.2 million, digital revenues grew to $108.4 million. Digital made up 49.1 per cent of total revenues for the quarter, up from 40.5 per cent during the same period in 2013.

Chief executive Julien Billot said the company's growth plans will also "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."

Yellow Media competes with big search engines Google, Yahoo and Bing as well as small digital companies to attract consumers who use the Internet to search for businesses and services.

As part of its strategy, Yellow Media acquired the remaining 70 per cent interest of 411.ca, an online search engine dedicated to finding people and local businesses in Canada, and says recent advertising campaigns to promote the Yellow Pages mobile app resulted in 65 per cent increase in average weekly downloads.

Canaccord Genuity analyst Aravinda Galappatthige said the revenue figures were above expectations, noting the results were positive "considering that Yellow Media's international peers are seeing online revenue declines."

"As we track the progress and returns from the company's growth strategy, we are seeing good initial results," Galappatthige said in a note to clients.

Total visits the company's Yellow Pages, RedFlagDeals and ShopeWise brands were slightly up, from 102.4 million in the second quarter compared to 100.1 million visits during the same period last year.

Yellow Media underwent major financial restructuring in recent years, cancelling its dividend and selling some of its assets. The company also cut about 10 per cent of its workforce, mainly in jobs related to print directories.

It's currently consolidating and replacing its print publishing systems, as well as reviewing its national print distribution model.

On the Toronto Stock Exchange Wednesday, Yellow media shares were trading at $17.85, up seven cents.

The Canadian Press


Read more Business News

23615


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24376

FEATURED Property
2074759#165 (B6) 1288 Water Street
3 bedrooms 2 baths
$97,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_








Member of BC Press Council


24409