Yellow Pages (Y) Q4 2024 earnings summary

Executive summary

• Revenue decline rate improved for the fourth consecutive quarter, with new customer acquisitions up 6% year-over-year in Q4 and 28% for the year.

• Adjusted EBITDA margins remained solid despite revenue pressures and continued investments in sales force expansion and revenue initiatives.

• Cash on hand grew to approximately CAD 49 million as of end of January, supporting ongoing operations and dividend payments.

• Final voluntary pension plan payments completed, achieving a wind-up ratio over 95% and leading to a Board-approved derisking plan.

• Quarterly dividend of CAD 0.25 per share declared, payable March 17, 2025.

Financial highlights

• Q4 2024 revenues were CAD 51.4 million, down 8.1% year-over-year; full-year revenues were CAD 214.8 million, down 10.3%.

• Digital revenues for Q4 declined 7.2% to CAD 42 million; print revenues fell 11.5% to CAD 9.4 million.

• Adjusted EBITDA for Q4 was CAD 8.2 million (16% margin), down from CAD 16.2 million (29.1%) last year; full-year adjusted EBITDA was CAD 50.8 million (23.7% margin).

• Net income for Q4 was CAD 2.7 million, down from CAD 12.2 million; full-year net income was CAD 25 million, down from CAD 47.4 million.

• Adjusted EBITDA less CapEx for Q4: CAD 7.8 million (15.1% margin); full-year: CAD 48.4 million (22.5% margin).

Outlook and guidance

• Revenue decline rate improvement and increased new customer acquisitions are seen as positive indicators for medium- and long-term prospects.

• Margin pressures expected to persist due to revenue mix, investments in telesales, stock-based compensation, and product mix shifts.