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Yellow Pages Provides Financial Outlook for 2017 Fiscal Year

Montreal (Quebec), February 21, 2017 — Yellow Pages Limited (TSX: Y) (the “Company”) today provided guidance for 2017 following the issuance of its fourth quarter and full year results on February 14, 2017.

As the Company works to address unfavourable changes in the product mix, EBITDA adjusted for restructuring and special charges (“Adjusted EBITDA”) will remain under pressure through 2017. 

As a result, for the year ending December 31, 2017, the Company expects:

  • Digital revenue growth between 4% to 7%.
     
  • Adjusted EBITDA margin of 22% to 24%, which includes non-recurring investments related to addressing the product mix effect.
     
  • Stabilization of the customer base, driven by customer retention initiatives with a customer acquisition target of 45,000 customers.
     
  • Capital expenditures, net of related lease incentives, of $70 million.
     
  • The Company expects stabilization of Adjusted EBITDA in the short to mid-term, post-2017. 


As previously communicated, the Company has initiated a review of the business strategy with the purpose of supporting the continued long-term success of a digital-first business. The areas of focus include marketing offers, customer journey, sales structure, operational platforms, and subsequent effects on long-term revenue, Adjusted EBITDA growth and capital allocation policy. The Company anticipates communicating the outcome of this exercise and the accompanying strategy in May 2017. 

As part of establishing the above guidance, the Company made the following assumptions:

  • Economic conditions in Canada do not materially deteriorate beyond currently anticipated levels; 
     
  • Exposure to foreign exchange risk arising from foreign currency transactions remains insignificant;
     
  • Print decline rates continue at the same level; 
     
  • We will be able to introduce, sell and provision products and services that will generate the anticipated return on investment for customers;
     
  • The revenue mix between the Company’s digital owned and operated, services and resale solutions will not materially change from currently anticipated levels;
     
  • The Company will be able to further accelerate customer acquisition levels at currently anticipated Average Revenue per Customer (ARPC) and, over time, retain and upsell newly acquired customers;
     
  • Investments in branding will evolve legacy perceptions and boost awareness of our digital media platforms; and
     
  • The Company will be able to realize efficiency gains to support profitability and cash flow generation.


The Company cautions that the assumptions used to prepare the guidance provided above, although currently reasonable, may prove to be incorrect or inaccurate. Accordingly, our actual results may differ materially from our expectations as set forth above. The guidance provided above constitutes forward-looking information within the meaning of applicable securities laws and should be read in conjunction with, and is qualified by, the “Caution Concerning Forward-Looking Statements” section below.


About Yellow Pages Limited
Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing solutions company that supports local economies by helping businesses reach new customers and foster stronger relationships with existing clients through its various media and products. Yellow Pages holds some of Canada’s leading local online properties including YP.ca™, RedFlagDeals.com™, Canada411.ca, 411.ca, Bookenda.com, dine.TO, DuProprio.com, ComFree.com and YP NextHome. The Company also holds the YP, YP Shopwise, YP Dine, RedFlagDeals, Canada411, 411, Bookenda, DuProprio, ComFree and YP NextHome mobile applications and Yellow Pages™ print directories. Through Mediative, Yellow Pages is a leader in national advertising through its various channels and services devoted to North American businesses. The Company also owns JUICE Mobile, a mobile advertising technology company whose proprietary programmatic platforms facilitate the automatic buying and selling of mobile advertising between brands and publishers. For more information visit www.corporate.yp.ca.
 

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 February 21, 2017, 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 Management’s Discussion and Analysis for the fourth quarter and full year results of 2016, issued on February 14, 2017. 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.


Contacts:

Media
Fiona Story
Director, Public Relations & Corporate Communications
Tel.: (514) 934-2672
fiona.story@yp.ca                                        

Investor Relations
Kevin Chan
Senior Manager, Corporate Planning & Investor Relations
Tel.: (514) 938-6727
kevin.chan@yp.ca

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