Yellow Pages to initiate dividend, repay debt following turnaround

MONTREAL — Yellow Pages Ltd. says it is initiating a quarterly dividend and repaying all of its remaining debt following a successful turnaround.

The Montreal-based digital media and marketing company says it will pay 11 cents per share beginning in the second quarter of its fiscal year.

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It repaid notes in December three years ahead of maturity and says it will make an optional redemption payment of $107.1 million to repay its remaining debt fully around May 31, 2021.

The announcements were made Thursday as it reported that it capped a stronger year with net earnings surging 34 per cent to $53.6 million in the fourth quarter, up from about $40 million a year earlier.

That equalled $1.70 per diluted share, up from $1.28 per share in the fourth quarter of 2018.

Total revenues decreased 25.7 per cent to $93.5 million on lower digital and print revenues in the YP segment, as well as divestitures.

For the full year, it earned $94.7 million or $3.16 per share on $403.2 million in revenue. That compared with $82.8 million or $2.78 per share on $577.2 million in revenue in 2018.

Yellow Pages was expected to earn $54 million on $403 million of revenues, according to financial markets data firm Refinitiv.

The company has made adjustments to the shifting needs of a competitive marketplace, including restructuring its relationship with unionized sales representatives across Canada.

This report by The Canadian Press was first published Feb. 13, 2020.

Companies in this story: (TSX:Y)

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