Income from operations before the impairment charge for the quarter was $115.9 millioncompared to $136.9 million for the same quarter in 2011. EBITDA for the quarterdeclined from $190.0 million to $146.0 million. The EBITDA margin in the quarter was50.5% compared to 54.4% last year. The decrease is mainly attributable to print revenuepressure and investments in support of the Company’s transformation.“Our industry continues to evolve as it adapts to a new digital reality. Although the needsof advertisers have not changed, they are seeking support navigating through thiscomplex market.” said Marc P. Tellier, President and Chief Executive Officer of YellowPages Group. “Through our 360° Solution and dedicated sales force, we offer acompelling value proposition to help Canadian businesses succeed in today’s digitalworld.”
Continued Progress on Yellow Pages’ Digital Strategy
Launched in 2011, Yellow Pages 360° Solution marked a key milestone in theCompany’s digital transformation. Its value proposition resides in how customers canaccess expert support and unprecedented visibility through online, mobile and printmedia platforms, and access services such as managed website services, customizedsearch engine marketing and search engine optimization, and Yellow Pages Analytics™,all offered through a single point of contact.Through its 360
Solution YPG is demystifying digital advertising for Canadian SMEs,helping them make the necessary shift to digital. Yellow Pages 360° Solution bringsrelevancy to Yellow Media’s product and service portfolio moving forward, generatinggrowth potential for the Company.As of March 31, 2012, the advertiser penetration of YPG’s 360º Solution (defined asadvertisers who subscribe to three product categories or more) was 7.9% compared to1.9% as at March 31, 2011. In addition, the Company has also sold approximately13,000 websites for SMEs, making it one of the leading website providers in Canada.In 2012, Yellow Media will expand its product and service offering to meet the needs oflarger advertisers through a High Priority Accounts Program. This program is aimed atmitigating revenue risk and optimizing revenue growth of larger advertisers through adifferentiated servicing model. A comprehensive advertiser profiling methodology is nowin place to guide the evaluation of account needs and opportunities through the review ofYellow Pages Analytics
results, website audits and competitive rankings, searchengine marketing estimates, and social media and search engine reviews.On April 27, 2012, Yellow Pages received two Gold Excellence Awards for its innovativemobile local search placement product and its MarketProfiler™ online evaluation toolfrom the Local Search Association. Launched in July 2011, the local search placementproduct is YPG’s first foray into mobile advertising. This product puts local smallbusinesses at the top of the list in mobile searches for their products or services. Sixmonths after its launch, more than 13,000 Canadian SMEs have invested in mobileplacement.