Yellow Pages Industry Monitor

| Fortnightly newsletter on the Yellow Pages industry | Issue No. 3, Published 18 May 2009 | Published by Heernet Ventures Limited (heernet.com) |
th

News
          UAE-based Etisalat launches new compact directories Yellow Pages Group (Canada) developing new marketing strategy Baidu.com to develop new mobile search tools for Chinese market 1850 Directory Assistance acquires Vodafone’s directory assistance in the Netherlands Local search engine, YellowSpaces launches in US market Eniro to publish telephone directory for Turku (Finland) LocalAdLink launches in Asia through joint venture Yell becoms Google AdWords’ reseller in the UK Microsoft relaunches online city guides BT Group plc declares financial result for year to March 2009

Data
   Share price performance Deal sheet (January – March 09) Online local search in the German market

Advisory services Heernet Ventures publishes this newsletter as part of its research coverage of the yellow pages industry. You can access more research on the yellow pages industry from our research website at G2Mi.com. If you are a media company or financial investor seeking market or company analysis on the yellow pages industry, we can assist you. With dedicated research analysts based in both Europe and Asia, we are well placed to provide ‘on the ground’ assistance and support in most countries. Over the last five years, we have worked on a number of advisory assignments in the industry on areas such as growth strategy, product benchmarking, competitor intelligence and acquisition search. For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com.

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News

UAE-based directories

Etisalat

launches

new

compact

Date 5th May, 2009

MediaTek is a Taiwanese-based mobile hardware and software company; it’s primary business is manufacturing integrated circuits for mobile handsets, but in recent years it has expanded into software.

The UAE-based telecoms operator, Etisalat has launched a compact yellow pages directory in partnership with Al Wahda Express, a Dubai-based directory publisher. The directory is a combined English-Arabic book and will be published in 3 editions covering Abu Dhabi, Dubai and the Northern Emirates. Etisalat has 7.34 million mobile subscribers and 1.35 million fixed line subscribers in the UAE; the company also provides Internet access services to 1.2 million subscribers. Al-Wahda Express is a leading provider of both print and online yellow pages solutions in the Middle East.

1850 Directory Assistance acquires Vodafone’s directory assistance in the Netherlands
Date 5th May, 2009

The Dutch directory assistance company, 1850 B.V. has acquired Vodafone Netherlands’ directory assistance service. 1850 operates the 1850 Directory Assistance service; it was launched in April 2007 when the previous 118 service was terminated.

Yellow Pages Group (Canada) developing new marketing strategy
Date 5th May, 2009

Local search engine, YellowSpaces launches in US market
Date 6th May, 2009

The Canadian directories publisher, Yellow Pages Group (YPG) has hired two new marketing agencies to help it develop its new marketing and branding strategy. The agencies are TAXI Canada and PHD. The agencies will help develop a new communications strategy across YPG’s print, online and mobile offerings. YPG is the incumbent directory publisher in Canada and holds a leading position across both print and online offerings.

A new local search engine, YellowSpaces, has been launched in the US. The search engine utilises local content from Localeze and claims that its search algorithms enable it to provide a smarter, more efficient search experience to users. Localeze is a local content provider and has recentluy developed a scoring mechanism (Localeze Confidence Score) which it claims allows search engines to better identify the accuracy of listings data.

Baidu.com to develop new mobile search tools for Chinese market
Date 5th May, 2009

Eniro to publish telephone directory for Turku (Finland)
Date 12th May, 2009

The Chinese search engine, Baidu.com has formed a partnership with a number of mobile handset manufacturers to develop and install a mobile search product on their handsets and other wireless devices in the Chinese market. The manufacturers include Samsung, Lenovo and Tianyu. Baidu is the leading search engine in the Chinese market and it is keen to extend its market leadership to the mobile search space. Baidu will also develop a mobile search engine that integrates with MediaTek’s mobile operating system.

The Nordic directory publisher Eniro won the tender to publish telephone listings for the Finnish city of Turku. Eniro won the competitive tender following a bid € 26,700 (compared to Fonecta’s bid of €54,000). Eniro’s access to the data will be on a non-exclusive basis.

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LocalAdLink venture

launches

in

Asia

through

joint

Microsoft relaunches online city guides
Date: 8th May 2009

Date 14th May, 2009

The local search content and technology company Beyond Commerce Inc., has formed a 50:50 joint venture with the Singapore-based company, Labocus Ultronics. This is its first major expansion into Asia; the joint venture will see Beyond Commerce licencing its LocalAdLink brand and technology to the joint venture, with Labocus Ultronics funding and running the operation. The venture will target a number of Asian markets including Malaysia, Indonesia, Brunei, Thailand, Vietnam, Cambodia, Burma and Laos (it also has the option of expanding into the Philippines and India). LocalAdLink is an online local advertising network.

As part of its online local search offering, Microsoft has launched new online city guides. Covering over 5,000 US cities, the website introduces better mapping and search tools and new editorial content and advertising. The site also has enhanced networking tools (including a facebook application).

BT Group Plc declares financial result for year to March 2009
Date 14th May, 2009

Yell becoms Google AdWords’ reseller in the UK
Date 14th May, 2009

The UK-based directory publisher Yell Group plc has become a Google AdWords reseller in the UK. Yell is the incumbent publisher in the UK and had initially formed a partnership with Google back in 2005. That earlier partnership was based on Yell providing Google Local search access to Yell’s local listings data. This new partnership will see Yell selling Google AdWords products to its own small business customer base. The deal could be perceived as an acknowledgement by Yell that its online offering will find it tough to deliver its advertisers sufficient traffic from its own Yell.com website. Google has invested heavily in building its local search offering in the UK market; recently, it launched its Street view product with coverage of all major cities. The latest audited traffic data shows that searches on Yell.com declined by almost 3% in the twelve months to March 2009.

The UK-based telecoms operator, BT Group Plc announced its financial results for the year ended March 2009. The company increased revenues by 3.3% to £21.39 billion and EBIDTA declined 6.1% to £5.55 billion. The company is the No. 3 print directory publisher in the UK market with its BT Phonebook offering; it also has an online offering based around a BT website and the recently purchased Ufindus websites. In a bid to improve profitability, the group is planning a 10% reduction in headcount in 2009.
£ billion 2008 2009 % change

Revenue EBIDTA Net Loss Source: Company data

20.70 5.91 2.63

21.39 5.55 2.08

3.3% -6.1% -20.9%

Mar-08 Unique users Visits PVs Searches Source: eABC 30,911,451 8,490,667

Mar-09 10,740,688 16,557,076 63,583,393 30,118,372

% change 26.5%

-2.6%

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Share price data

Company name

Reuters Code

Bloomberg Code

Currency

Current price 1 mth

% Change 6 mth -21.3% 11.12% -61.00% 14.17% -37.55% -21.30% 20.83% 12 mth -13.5% -31.51% -80.74% -31.87% -78.32% -43.26% -67.05%

Eniro AB Pages Jaunes Seat Pagine Gialle Telegate Yell Group Yellow Pages Income Fund Yellow Pages (Singapore)
th

ENIRO.ST PAJ.PA PGIT.MI TGTG.DE YELL.L YLO_u.TO YELP.SI

ENRO.SS PAJ.FP PG:IM TGT:GR YELL:LN YLO-U:CN YPG:SP

SEK EUR EUR EUR GBP CAD SGD

17.80 8.22 0.20 8.38 40.78 6.06 0.29

85.4% 13.58% -40.24% -3.68% 66.33% 1.68% 45.00%

Date updated: 15 May 2009

Telegate Pages Jaunes Yellow Pages Income Fund Eniro AB Yell Group Seat Pagine Gialle ‐61% ‐38% ‐21% ‐21%

14% 11%

Eniro AB Pages Jaunes Telegate Yellow Pages Income Fund Yellow Pages (Singapore) Yell Group Seat Pagine Gialle ‐78% ‐81% ‐80% ‐60% ‐40% ‐67% ‐43% ‐32% ‐32%

‐14%

‐80%

‐60%

‐40%

‐20%

0%

20%

‐100%

‐20%

0%

% share price change (Last 6 months)

% share price change (Last 12 months)

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Deal Sheet

A summary of key deals and joint ventures over the previous 3 month period.
Date March 2009 Investor Eniro AB (Sweden) Investee Oreo AB (Sweden) Terms SEK 6.6 million Details The Nordic directories publisher, Eniro AB acquired Oreo AB, a local public procurement service company. The website aims to facilitate the public procurement process for small businesses. Yellow Pages (Singapore) acquired the international business information website, Insis. The website was owned by the IE Singapore holdings (a public sector organisation). APN News and Media divested its online business directories operation(websites include FindA.co.nz, Wises maps, menus.co.nz, UBD and APNData) to Yellow Pages New Zealand. The venture fund, Helion Venture Partners invested in the Indian yellow pages and directories publisher, GETIT Infoservices. The capital will be used to expand GETIT's services nationally.

March 2009

Yellow Pages (Singapore)

Insis (IE Singapore holdings)

S$ 6.0 million

February 2009

Yellow Pages New Zealand

APN News and Media Ltd

N.A.

February 2009

Helion Venture Partners

GETIT Infoservices (India)

Rs 200 million

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Data

German local search and yellow pages website traffic data
In addition to the incumbent publisher, DeTeMedien, the German local search market has a number of other domestic players.  The  leading ones include the directory assistance operator, Telegate which operates the 118088 website and the online specialist,  GoYellow.  The website Was leifert Was is a specialist trade directory website.    

Growth in visitor numbers for leading local search websites

Gelbe Seiten GoYellow Das Ortliche Telegate / 118 088 Das Telefonbuch Was leifert was ‐ 1,854  1,922  5,000  3,220  2,751 

6,464  5,975 

15,018  13,758  6,390  4,419  16,801  15,027  Apr‐09 May‐08

10,000  No. Visits (000s)

15,000 

20,000 

% change in visits and page views for leading local search websites

Gelbe Seiten GoYellow Das Ortliche Telegate / 118 088 Das Telefonbuch Was leifert was ‐50%

‐0.8% ‐5.7% ‐0.2%

8.2% 17.0% 9.2% 44.6% Visits Page Views 11.8% 5.7%

7.1%

‐27.3% ‐30%

‐3.5%

‐10%

10%

30%

50%

% change (May  08 ‐ April 09)
Source: IVW

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Published by: Heernet ventures limited London UK Tel: +44 (0) 208 180 7223 Fax: +44 (0) 870 762 3014 Web: heernet.com, G2Mi.com

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