Yellow Pages (Singapore) Limited

Transcription

1 Yellow Pages (Singapore) Limited FY2007 Results Presentation May 24, 2007 Company registration number: G

2 Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Yellow Pages (Singapore) Limited ( YPS ) and certain of the plans and objectives of the management of YPS. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of YPS to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements were based on numerous assumptions regarding YPS s present and future business strategies and the political and economic environment in which YPS will operate in the future. 2

3 Presentation Outline FY2007 Performance Internet Yellow Pages Performance Growth Strategies for FY2008 & Beyond 3

4 FY2007 Performance

5 FY2007 : Performance within Expectations Operational improvements continue to yield results Turnaround in revenue - Revenue 1.6% to S$59.0m Growth attributed to increase in both SPD and IYP revenue Robust growth in Internet Yellow Pages (IYP) - Revenue 74.3% to S$2.7m 5

6 FY2007 : Performance within Expectations Decline in net profit by S$1.9m to S$12.6m Investments to drive future growth - Strengthen sales and marketing units - Investments in digital business Provisions - Higher provision for staff bonus due to write-back in last year of excess provision for FY2005 staff bonus - Lower write-back of doubtful debt provision as compared to last year Total FY2007 Dividend of 7.5 cents per ordinary share - Final Dividend of 4.0 cents per ordinary share - Interim Dividend of 3.5 cents per ordinary share (paid in Dec 2006) 6

7 Financial Highlights S$ million FY2006 FY2007 Change Revenue % Operating Profit (1) % Profit before Tax % Net Profit % EBITDA % EPS (S$ cents) % (1) Profit before interest, tax and share of results of associated companies 7

8 Turnaround in Revenue (S$ million) % 59.0 FY2004 FY2005 FY2006 FY2007 in Revenue due to: - SPD revenue ( 0.8%) and IYP revenue ( 74.3%) FY: Financial year ended 31 March 8

9 Operational Initiatives Yielding Results Higher no. of Unique SPD Advertisers SPD Advertiser Retention hits a new high since FY ,000 12,000 10,000 8,000 6,000 4,000 2,000 11, % 11, % 80% 60% 40% 20% 78.0% 2, % Advertiser Retention Rate 2,707 No. of New Advertisers 7,000 6,000 5,000 4,000 3,000 2,000 1, % 0 FY2006 FY2007 FY2006 FY2007 FY: Financial year ended 31 March 9

10 ARPA* remained fairly stable still high by international standards (S$) 6,000 5,000 4,436 4,328 4,000 3,000 2,000 1,000 0 FY2006 FY2007 FY: Financial year ended 31 March * Average revenue per unique advertiser 10

11 Expenses S$ million FY2006 FY2007 Change Printing and material costs % Employee benefits (1) % Finance expenses Distribution expenses % Other expenses (see next page) % Depreciation and amortisation % Total expenses % (1) Mainly due to more conservative provision for staff bonus in FY2005 which resulted in the write-back of excess provision in FY2006, hence lowering employee benefits last year, and the increase in staff costs incurred to strengthen the sales and marketing units and to accelerate the growth of the digital business. 11

12 Other Expenses S$ million FY2006 FY2007 Change Bad & doubtful debts (1) (0.1) 0.4 N.M. Advertising % Property related & maintenance exp % Other expenses (2) % Other Expenses % (1) Due to higher provision for doubtful debt expenses largely resulting from lower write-back of doubtful debt provision as compared to last year. (2) Mainly attributable to the increase in costs incurred in strengthening the sales and marketing units, costs incurred to accelerate the growth of the digital business, and for outsourcing and professional fees. N.M. Not Meaningful 12

13 Major Changes in Net Profit S$ million Revenue Niche publications (1) and other revenue Other gains mainly interest and rental income Expenses Results of associated companies (1) Tax SPD Net Profit Internet Yellow Pages Higher operating costs to strengthen sales & marketing units & to accelerate growth of the digital business Write-back of excess provision of FY2005 s staff bonus in FY2006 & lower write-back of doubtful debt provision as compared to last year Others (1) Mainly due to a difference in the rate of distribution. 13

14 S$ million Balance Sheet Highlights 31 Mar Mar 07 Cash & cash equivalents Total assets Total liabilities Shareholders equity Current ratio Debt / Equity 4.1x 1.2x 3.8x 1.2x EBITDA / Interest expense 4.7x 4.1x Healthy net cash provided by operating activities of S$19.2m during the period. 14

15 Growth Strategies

16 Growth Strategies & Future Plans Phase I : FY2004 FY2007 Operational Strategies Implemented Door-to-door Delivery Delivering Improved Results Usage of print directories 20% Vertical Guides New Advertising Packages Advertiser retention rate from 78.0% in FY06 to 79.9% in FY07 in unique advertisers from 11,574 in FY06 to 11,956 in FY07 Improved Sales Strategy IYP Continued strong performance by IYP in FY07 16

17 Performance of Internet Yellow Pages

18 Internet Yellow Pages IYP continued its strong performance in FY2007 Average No. of Unique Visitors/Month Total No. of Searches 900, , , , , , % 776,065 5,000,000 4,000,000 3,000,000 4,260, % 4,452, ,000 2,000, , ,000 1,000, ,000 0 FY2006 FY FY2006 FY2007 S$ million IYP Sales Contracts 2.44 FY % 3.76 FY2007 3,700 3,600 3,500 3,400 3,300 3,200 3,100 3,000 2,900 2,800 2,700 No of IYP Advertisers Contracted 3,058 FY % 3,579 FY

19 Industry Accolade - Hitwise Singapore Online Performance Awards Program N0.1 Hitwise Business and Finance Category Business Directories for 2006 The Hitwise Singapore Online Performance Awards is a unique awards program that recognises excellence in online performance through public popularity. Employing the world's largest online sample, the Singapore Online Performance awards celebrate the #1 websites in over 130 industry categories, based on market share of visits from Internet users in a local market. Companies need not enter their website in order to win and as a result, the Hitwise Singapore Online Performance Awards are a true representation of the most popular websites in this country based on user visits. 19

20 Gearing Up. for the Next Wave of Growth 20

21 Growth Strategies & Future Plans Phase II : FY2008 FY2010 Print Directories Growth Opportunities Deepen Market Penetration Introduce New Print Products Digital Business Accelerate Growth of IYP & MYP Tap non-print advertisers Tap overseas markets 21

22 Print Directories Business Deepen Market Penetration Increasing usage will be key to deepening market penetration and hence, realising revenue potential Changing our current products to become more useful and friendly to today s consumer Fine-tuning our circulation policy to increase effective usage A&P More industry-targeted sales strategy 22

23 Print Directories Business Introduction of New Print Products Creating new products that are more customised to special needs of specific segments of users Re-organising sales canvass schedule to maximise sales productivity throughout the year 23

24 Accelerate Growth of Digital Business Successful launch of enhanced IYP and soft launch of MYP in March 2007 Poised to tap growing potential --- first-mover advantage, strong domain knowledge To tap non-print advertisers IYP allows us to reach non-advertisers traditionally not served by print directories To tap our overseas markets India, Malaysia and Brunei Currently have 19,000 print advertisers overseas 24

25 Our Vision YPS Offerings Yellow Pages WebChannel Print Vertical Portals Integrated solution Special features Guided VOIP / Navigation C2C SMS Forwarding Location Search e.g. Map Alerts / Notifications Personalisation Profiling YP Database: Names, Brands, Products & Services, Operating Hours, Payment Method, POI, ATMs, Kiosk, etc. Precise. Relevant. Trusted.

26 Dividend Policy Declares final dividend of 4.0 cents per share Together with interim dividend of 3.5 cents per share, full year dividend for FY2007 will amount to 7.5 cents per share Board is reviewing alternative means of returning capital to shareholders 26

27 Summary Gearing up for Continued Expansion Focused growth strategies Print & Digital Strong financial fundamentals Commitment to enhancing shareholder value 27

28 Q&A