Yellow Pages Group: owns 35 percent Ziplocal, other buys, launches
For the first quarter of 2010, Yellow Pages Income Fund reported income from operations of $155.8 million compared with $132.1 million for the same time last year. Revenues were down year over year by approximately 1 percent.
“We are positioning our properties for growth in 2011 by investing in new product launches, such as Search Engine Solutions,” said Marc P. Tellier, President and CEO of Yellow Pages Group, in the announcement. “We are enabling our advertisers to raise their profiles across our print, online and mobile platforms, so they can connect with more of their existing and potential customers. We are also pleased with our progress at Trader and with the successful launch of Dealer Smart Solutions, which has already attracted more than 2,700 Canadian auto dealers.”
Combined online revenues for Directories and Vertical Media realized online organic growth of 20 percent, though adjusted revenues in directories declined by 5 percent. The new bolder, more distinctive Yellow Pages brand, unveiled during the quarters, reflects the company’s transformation into a media and marketing solutions company, according to the release. YPG is targetting a younger, more mobile demographic. Part of this marketing plan included the acquisition of Restaurantica.com, RedFlagDeals.com, and 411.ca. Mobile apps for IPhone, Blackberry and Android, downloaded more than 1 million times, were enhanced to include new functionality.
Dealer.com, which recently earned top honors from Auto Dealer Monthly for its website design and Internet training, was credited for much of the first quarter revenue growth, due to its Dealer Smart Solutions and general rebound in automotive advertising. Real estate and other classified categories “continue to be challenged,” according to the release.
YPG continues to prepare for conversion from an income trust to a traditional corporate structure. That plan is to be voted on very soon.
In addition to the Canpages acquisition, Yellow Pages Group announced the contribution of its U.S. directory operations, YPG Directories, LLC, publisher of Your Community PhoneBook, to Ziplocal. That transaction closed on April 15, 2010, which makes YPG 35 percent owner of Ziplocal. The Blue Bell, PA and Indianapolis, Ind. offices will be retained.
YPG goes shopping, ramps up search
A busy week for Canada’s Yellow Pages Group: It announced Monday the acquisition of two dot-com companies. Clear Sky Media Inc. runs the high-profile RedFlagDeals.com, a “provider of online promotions and shopping tools for Canadians, with an estimated 2.2 million unique visitors per month,” as well as PriceCanada.com. YPG also picked up the 411.ca brand and “an ownership interest” in 411 Local Search Corp., to eliminate confusion with YPG’s dominant Canada411.ca online directory. Terms of the purchases were not released. And last Thursday, YPG announced its new suite of search engine services for small businesses, including a pretty cool video. Like all directory companies, YPG no doubt hears Google’s winged chariot hurrying near, as in this New York Times piece on $25-a-month SMB “enhanced listings”.
YPG writes down Trader by C$315 million
Canada’s Yellow Pages Group has taken a C$315 million writedown on the value of its Trader Media Corp., a story in The Gazette reveals. We reported earlier on YPG’s $168 million loss in Q309. Further digging by the Montreal newspaper shows that the collection of vertical publications was the cause of the loss. Trader’s 160 print and 20 web properties were down 25 per cent in revenue over the same period the previous year. YPG paid $436 million in 2005 for Trader in Ontario and another $760 million in 2006 for Classified Media Holdings across the country, to dominate the resale auto market the way its Yellow Pages dominate directories. (Note: I had those two transactions backwards in the original post; thanks to Jim LaPalme for the correction.) But a slew of competitors, including Kijiji, have been attacking Trader’s market share.
Yellow Pages Group offers shares, reports earnings
Yellow Pages Group, owner of Canada’s Auto Trader and Home Trader, recently announced its effort to raise $165 million ($151.5 US) cash by issuing new shares on the Toronto Stock Exchange. Its August 6 Q209 earnings report may suggest why – though for a directory and classified publisher, the news wasn’t all that bad.
Q209 Yellow Pages Group revenues increased by 4.3 percent, consolidated net earnings for the quarter dropped from $135.7 million ($141 US) for Q208 to $116.8 million ($107.2 US), and cash flow actually increased from $181.8 million ($166.9 US) to $185.5 million ($170.3 US).
The current economic downturn is having its greatest impact on Trader, which experienced its most difficult quarter to date. Trader second quarter revenues were $66.5 million ($61 US) – a year-over-year decline of nearly 27 percent. The decline narrows to 22.4 percent when taking into account the sale of U.S. operations and other restructuring initiatives completed in the 2008 fourth quarter. Directories and Vertical Media, a division suffering mightily for just about every directory company, fared surprising well, with 23 percent quarterly revenue growth to $75.2 million ($69 US), 36 percent of which came from online rather than print.
The offering of Medium Term Notes Series 9 and Series 8, in addition to paying down debt, might well be about creating new products, such as the Yellow Pages ecoGuide launched this past quarter.
”While we continue to manage our business with prudence, we are pushing ahead our efforts in market coverage and in the introduction of new products,” said Marc P. Tellier, President and CEO of Yellow Pages Group, in the announcement. “For YPG’s management team, these steps are critical to building a strong business and ensuring our long-term success despite the ongoing pressures we are experiencing in the marketplace.”
Developed in collaboration with environmental and municipal organizations, the ecoGuide is located in the front of all new Yellow Pages(TM) directories and includes local environmental services, a household items disposal guide, a list of environmental certifications as well as actions to help Canadians reduce their ecological footprint.
“As we expand our multimedia offers, we expect online advertising to represent a growing share of our media mix with advertisers both in Directories and in Vertical Media,” the quarterly report stated. “We expect annualized online revenues for Directories and Vertical Media combined to grow by approximately 20 percent in 2010.”
Yellow Pages Group owns and manages YellowPages.ca, Canada411.ca, the CanadaPlus.ca network of directories, YourCommunity.com in the United States, and independent directories in several Mid-Atlantic and Southeast U.S. markets.
Canada’s Yellow Pages Groups cuts deal with My Virtual Paper
Canada’s Yellow Pages Group (YPG) has entered into a multi-year agreement with Virtual Paper Inc. to become a reseller of My Virtual Paper to thousands of YPG directory advertisers across Canada. YPG will also use My Virtual Paper to convert some of its print directories into online, searchable directories.
The idea behind the partnership is intriguing. Many small businesses still do not have websites, only print materials (flyers, brochures, catalogs, etc.). The Montreal-based My Virtual Paper converts that print material into search engine optimized Web pages. By partnering with YPG, the technology can now reach thousands of new potential clients.
It works for businesses already on the Web too. A restaurant will now be able to post a menu on the Web much more quickly.
My Virtual Paper will be offered to YPG customers in the first quarter of 2009.
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