Yellow Pages swings to Q3 profit on cost-cutting and asset sales

MONTREAL – Yellow Pages Ltd. says it swung to a profit in the third quarter despite a substantial drop in revenues.

The Montreal-based digital media and marketing company says it earned $27.1 million, or 89 cents per diluted share for the period ended Sept. 30, compared with a loss of $7.2 million or 27 cents per share a year earlier.

The company says its quarterly turnaround was due to reductions in its cost structure, including from workforce reductions, reduced office space, lower overall spending, as well as gains from the sale of assets and a $18.3 million reversal in income tax provisions from previous tax years.

Yellow locked out 130 sales representatives in September because it accused the union of being inflexible. It announced a plan in January to cut about 500 jobs across Canada.

Quarterly revenues decreased 26 per cent to $130.1 million, from 175.7 million in the prior year due to digital and print revenue declines and to the sale of publications in the second and third quarters.

Yellow says net proceeds from the sales of ComFree/DuProprio and RedFlagDeals.com will be used to pay $115.4 million in debt.

In addition to the Yellow Pages print directories, its online properties include YP.ca, Canada411.ca, 411.ca, Bookenda.com and YP Shopwise.

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