Digital and print revenue down for Yellow Pages, but losses decrease

Total revenue decreased by more than 10% and customer count is also down, but the company's CEO remains optimistic.

Revenues were down in Q1 for the Yellow Pages, but CEO David A. Eckert says it’s still a positive story.

Adjusted EBITDA came in at $42.5 million, 59% higher than it was in Q1 2017, thanks to reductions in the company’s workforce and associated expenditures.

The company’s main divisions are the YP segment (digital and traditional marketing solutions including owned and operated media), the agency segment (national advertising services to brands and publishers through its acquired properties such as Mediative, Juice and Totem), and its real estate and other arms (properties including and local lifestyle magazines in the Western Canadian market). Total revenues declined by 11.6% (down to $159.3 million) and customer count decreased by 7.7% (down to 221,110). Most of the declines came from weakness in digital revenue across all segments, and a 19% decline in print revenue.

The company’s net loss shrank significantly, with Yellow Pages losing $919,000 in the first quarter this year compared to $5.1 million during the first three months in 2017.

Eckert said the results are a reflection of the company’s “progress in aligning our spending with the realities of our revenue.” He said the company is set for profitable growth in the future. Yellow Pages has been working to transform its business model from a listing and classifieds company to a more diverse digital advertising entity.

In January, the Yellow Pages announced 500 layoffs in order to bring its operating expenses down. Those layoffs resulted in a $17 million impairment charge at the time.