Yellow Pages (Y) Q3 2024 earnings summary

Executive summary

• Achieved a third consecutive quarter of improved revenue trend, with profitability and strong cash balance maintained.

• New customer acquisitions rose 36% year-over-year, supporting positive medium- and long-term outlook and decelerating customer count decline.

• Adjusted EBITDA margin was 23.8% despite ongoing investments in sales force expansion.

• Cash on hand reached approximately CAD 43 million at October's end, reflecting steady cash generation.

• Quarterly dividend of CAD 0.25 per share declared, payable December 16, 2024.

Financial highlights

• Revenue for Q3 2024 was CAD 52.6 million, down 9.4% year-over-year, but the rate of decline improved from the previous quarter.

• Digital revenues fell 8.7% year-over-year to CAD 42.6 million; print revenues dropped 12.4% to CAD 10 million.

• Adjusted EBITDA was CAD 12.5 million (23.8% margin), down from CAD 17.9 million (30.9% margin) in Q3 2023.

• Net income for Q3 2024 was CAD 6.3 million, or CAD 0.46 per diluted share, compared to CAD 10.1 million, or CAD 0.56 per share, last year.

• Cash flows from operating activities increased to CAD 11.5 million from CAD 10.3 million year-over-year.

Outlook and guidance

• Continued investments in sales force and revenue initiatives expected to pressure margins in upcoming quarters.

• Management remains optimistic about future revenue stability and profitability, with improved customer acquisition seen as positive for medium- and long-term prospects.