Interim Results for the six months ended 30 September 2006 7 November 2006.
Transcript of Interim Results for the six months ended 30 September 2006 7 November 2006.
Interim Resultsfor the six months ended30 September 2006
7 November 2006
2
Disclaimer
During this presentation we will be discussing Yell’s business outlook and making certain forward-looking statements. Any statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially.
We urge you to read the section on Risk in the annual report. We also draw your attention to our press release which is posted on our web site.
An interim report will be sent to all shareholders and posted on our web site.
3
John Davis, CFO
John Condron, CEO
John Condron, CEO
Agenda
Financials
Introduction
Strategic update
FinancialsJohn Davis CFO
5
Headline results
Earnings and cash flow figures stated before exceptional items and amortisation
Six months ended 30 September2006
£m Change
At constant exchange
rate
Revenue 848.8 19.4% 21.2%
Adjusted EBITDA 269.2 15.6% 17.3%
Adjusted operating cash flow 245.5 15.4% 16.7%
Cash conversion91.2%
Adjusted diluted EPS 13.8 (10.4%)
Dividends per share 5.7p 11.8%
6
Revenue
Six months ended 30 September2005£m
2006£m Change
Yell UK
Printed directories 305.9 297.1 (2.9%)
Yell.com 25.7 42.9 66.9%
Other 9.6 11.6 20.8%
Total Yell UK 341.2 351.6 3.0%
Yellow Book USA
Printed directories* 360.2 451.3 25.3%
Yellowbook.com* 9.7 16.4 69.1%
Exchange impact - (12.7)
Total Yellow Book USA 369.9 455.0 23.0%
Total TPI - 42.2
Group total 711.1 848.8 19.4%
*at a constant exchange rate
7
7.5
26.423.0
3.41.6
15.8
1.82.9
Same marketgrowth
Newlaunches
Internet AcquisitionsRescheduling Growthbefore FX
Exchangeimpact
Total growth
US revenue growth breakdown
Contribution to revenue growth (%)
Organic Growth 12.2%
8
Adjusted EBITDA
Six months ended 30 September2005£m
2006£m Change
Yell UKPrinted directories 117.2 112.5 (4.0%)Yell.com 10.9 15.8 45.0%Other products & services 4.3 5.0 16.3%
Total Yell UK 132.4 133.3 0.7%Margin 38.8% 37.9%
Yellow Book USA
Printed directories* 100.5 131.8 31.1%Exchange impact - (4.0)
Total Yellow Book USA 100.5 127.8 27.2%Margin 27.2% 28.1%
Total TPI - 8.1Margin - 19.2%
Group total 232.9 269.2 15.6%Margin 32.8% 31.7%
*at a constant exchange rate
9
Cash
91.2% EBITDA converted to cash
£m
269.2 (34.5)
(90.2)
(17.1)
120.8
(6.6)
245.5
AdjustedEBITDA
Workingcapital
Capex Operatingcash flow
Cash interest
Cash tax Free cash flow
10
Analysis of debt
At 30 September 2006 £m
Net loans and other borrowings (3,789.8)
Cash 66.0
Net debt (3,723.8)
43% $ denominated 35% £ denominated 22% € denominated
c.98% of debt fixed until December 2008 falling to c.50%until September 2010
11
EPS further diluted by second half weighting of US profit and higher UK investment in first half
Adjusted diluted EPS
EPSPence
Contribution
to Growth
H1 FY 2007 actual EPS 13.8p (10.4%)
TPI revenue phasing 1.8p 11.7%
TPI equity placing 0.4p 2.6%
FX movement 0.2p 1.3%
H1 FY 2007 underlying EPS 16.2p 5.2%
12
Financial summary
Strong US and UK organic performance,particularly online
TPI underlying performance as expected
Interim dividend up 12%
Reiterating guidance
John CondronCEO
14
Yell UK - win, keep, grow
Print– 51,000 new advertisers
– Advertisers down 4%
– Retention stable at 74%
– ARPA up 1%
Online– Searchable advertisers up 15%
– Yell.com-only advertisers up 13%
– Unique users up 35%; Searches up 16%
– RASA up 41%
15
Yell UK drivers – print and voice
Proving value– Average of £25 new business for every £1 invested
– Call Counter roll out continues
Driving usage
118 24 7 – 62% rise in call volumes
– Awarded best service three years in a row
Proposed remedies published by Competition Commission
16
Yell UK drivers - Yell.com
Monetising usage– Advertising
– Sponsored Listings reward higher prioritisation
Evolution of search capability– Industrial search trial
– Shopping trial
– Food & Drink trial
Functionality improvements– Mapping updates – advertisers get greater visibility
– Information tool – more local information on maps
17
Yellow Book USA - win, keep, grow
Print– Advertisers up 43%, mostly TransWestern
– Retention 70%
– ARPA down 2%, reflecting TransWestern
Online– Searchable advertisers up 12% to 390,000
– Unique visitors up 174%
– RASA $76
18
Yellow Book USA drivers
Continue driving usage– Local advertising campaign
– 30% usage in markets studied in syndicated study
Expansion continues– Launches and in-fill acquisitions
TransWestern integration progress – Relaunches underway
– Sales per rep up 15% since acquisition
– Sales churn down
– TransWestern scoping improvements
19
Yellow Book USA drivers - Yellowbook.com
Continue driving usage– Successful advertising campaign
– Building opportunity to monetise usage
Hybrid approach– WebReach trial
20
TPI update
First two months– Integration underway
– Strategic review of non-core products
– No surprises
– Synergies on track
– Embracing “back to basics”
21
In summary
All-round strong performances with rapidonline growth
Good early progress on TPI integration
Competition Commission to publish final conclusions
Confidence looking forward
Investor Relations: Jill Sherratt +44 (0)118 950 6984
www.yellgroup.com
Yell, Queens Walk, Oxford Road, Reading, Berkshire RG1 7PT
™Trade mark of Yell Limited