We started 2010 as a solid
company with strong business fundamentals and well positioned for future growth
Marc P. Tellier
President and Chief Executive Officer
Message to our Unitholders
In the face of an uncertain economic environment, Yellow Pages Group (YPG) started 2010 as a solid company with strong business fundamentals and well positioned for future growth.
During 2009, we remained focused on delivering operational excellence, concentrating on what we could control and on our strategic imperatives. We made the necessary adjustments to adapt to challenging market conditions. We have maintained best-in-class performance metrics and outperformed most of our peers in directories and, more broadly, in the media industry.
We have been successful in proving that our directories business is resilient, even in tough economic times. In 2009, we continued to invest in market coverage, new product introduction as well as in technology, putting us in a better position to capitalize on growth opportunities as the economy recovers.
The economic downturn has had a greater impact at Trader. We dedicated time and resources to cost-containment and the completion of restructuring initiatives. Our team remained energized and focused on the deployment of Dealer Smart Solutions, an integrated, cost-effective solution for automotive dealers that has been instrumental in our repositioning of the business online.
For 2009, our consolidated Adjusted Revenues reached $1.65 billion compared to $1.7 billion in 2008. Online revenues represented the most significant lever of growth for both platforms through increased penetration of our offerings and the introduction of new products. For the year ended December 31, 2009, online revenues reached $304 million, representing organic growth of 24 per cent.
Adjusted EBITDA for the year was $898 million compared to $931 million in 2008. Decisive actions to control expenditures across the entire company have translated into continuing high EBITDA conversion. The Adjusted EBITDA margin was 54.4 per cent at year end.
The ongoing resilience of the directories business, combined with cost-containment measures translated into distributable cash of $714 million in 2009 compared to $751 million in 2008. Distributa ble cash per unit amounted to $1.40 in 2009 compared to $1.43 in 2008.
While managing our business with prudence throughout the year, we developed and executed a plan to strengthen our capital structure and prepare for the conversion from an income trust to a traditional corporation, which will take place by the end of 2010.
