Markets Tech

Yellow Pages Reports Huge Four Quarter Loss

increased its loss to $586.3 million or $22.33 per share in the fourth quarter, compared with a loss of $431.6 million or $16.35 per share last year.

Net losses in the fourth quarter of 2017 and 2016 are mainly attributed to charges of $507 million and $600 million recorded in the fourth quarter of 2017 and 2016, respectively, related to the write-down of intangible assets and goodwill.

Quarterly revenues increased from 202.7 million a year ago to 183.8 million this year.

This 9.4% decline is mainly attributed to lower print revenues in the YP sector. Media revenues and digital solutions totaled $137 million, down 4.3% from the same period last year due to decreases in the YP segment.

Printed revenues decreased 21.6% year-over-year to $46.7 million as a result of a decline in print media customers resulting from the transition of marketing expenses printed to digital marketing.

Total revenue decreased 8.8% year-over-year to $745.9 million for the year ended December 31, 2017, primarily due to lower print revenues .

The net loss was $589.3 million, a diluted loss of $22.32 per share for the year ended December 31, 2017, compared to a net loss of $403.7 million, a diluted loss of 15, $ 23 per share for the corresponding period last year.


Stock market listings bloom before the arrival of the “unicorns”

Dropbox, Spotify, Uber, Lyft … As IPOs pick up dramatically in the United States, some tech giants dubbed “unicorns” are preparing to hit markets.

In January, 18 Initial Public Offering (IPO) were registered in the country for $7.9 billion of capital raised, a record-breaking start to the year since Dealogic compiled these statistics in 1995.

The year 2017 had already shown the way of the recovery after a slump of three years, 189 companies having entered the United States for $49.4 billion raised capital.

“Wall Street is in very good health, the political context is stable now, the results of companies in the world are good and there is currently no major geopolitical threat that could delay the introduction process”, said Alex Ibrahim, head of the international capital markets division of New York Stock Exchange (NYSE).

Despite the recorded drops on the courses of Snap and Blue Apron since their very remarkable introduction last year (respectively -20% and -70%), the beginnings of the great majority of the newcomers were solid.

The firm Renaissance Capital, specializing in IPOs, noted a gain of 26% on average between the arrival on the market of companies introduced last year and end of 2017.

This favorable environment encourages certain “unicorns”, unlisted companies valued beyond $ 1 billion, of which a hundred are counted in the United States alone, to prepare the ground for their next arrival.

Dropbox, Spotify …

This is the case of the specialist online file storage Dropbox. The company, valued around $10 billion after its last round in 2014, filed in January a confidential application for IPO in the United States, according to the US press.

This request could lead to an IPO by the summer.

Allowed since 2012 by a US law and expanded last summer to large companies by the US Securities Regulator (SEC), this procedure aims to promote IPOs without having to reveal publicly confidential information, at least not before an advanced stage .

“Time to determine if institutional investors have an appetite for the company and if this appetite offers the level of valuation it considers necessary” for its development, said Douglas Ellenoff, a lawyer in business law.

According to Ibrahim, this procedure is used today by 75% of companies that are launching a listing process.

The Swedish music streaming giant Spotify would also be on the list to list the New York Stock Exchange via a direct listing procedure, subject to a green light from the SEC expected soon.

Direct listing, an atypical procedure the NYSE uses to attract new businesses, saves costs associated with a traditional IPO, such as some commissions paid to banks to help companies attract investors. It also prevents companies from raising new capital.

According to the Wall Street Journal , about $ 30 million will be paid by Spotify to the investment banks that follow the operation, which is three times less than when Snap was introduced.

Abundant capital

“Investment banks are usually paid a lot of money to allow a proper listing process. My fear is that the pricing mechanism is not as transparent and mature as it would be in a traditional IPO, “says Ellenoff. In his opinion, this would open the way to a risk of high price volatility in the first exchanges following the introduction.

Like Spotify, widely supported by private investors with deep pockets for several years, other unicorns could follow this model, say many observers. Uber, Lyft or Airbnb are regularly mentioned, the latter, however, said Thursday that it did not provide IPO this year.

“I do not think there will be a tidal wave. But they could follow this path if Spotify’s beginnings are a success, “says Ellenoff.

Kathleen Smith, co-founder of Renaissance Capital, is, however, more skeptical: “There is a reason that direct listing has not been used in the past. The many commissions and meetings that Spotify will need to fund to reach investors could ultimately cost it more in the long run. ”


Enerkem Raises $280 Million In Recent Round Of Financing

Montreal-based Enerkem has raised $280 million in its most recent round of financing, the largest since its operations began in 2003. Two new investors, BlackRock and Chinese firm Sinobioway, joined those who had already participated to the financing of the company.

Investissement Québec, the Solidarity Fund QFL, Cycle Capital, Fondaction, The Wesley Group, Rho Ventures, Braemar Energy Ventures, and Waste Management of Canada have already invested in the company that wants to transform non-recyclable waste into biofuels.

Enerkem has a production plant in Edmonton, Alberta, and plans since 2012 to build another one in Varennes, Quebec. This project received $ 38 million in financial assistance from the Québec government, of which $ 20 million in share capital and $ 18 million in grants.

Sinobioway’s investment (125 million) was announced during the recent economic mission of Prime Minister Philippe Couillard in China. Enerkem plans to build 100 factories in China by 2035.


Panic on the Canadian pot market

After a period of euphoria, investors who bet on the Canadian marijuana market are now panicking, while the Marijuana Index fell sharply by 19% Friday morning.

Canada’s leading cannabis producers, including Canopy Growth Corp and Aurora Cannabis Inc., have suffered a similar fate, while their stock market rating has declined more than 40% from the highs reached in early January, according to Bloomberg.

“Many investors have followed suit over the last month and many of them will suffer big losses. It’s a bit of a panic, “analyst Jason Zandberg told Bloomberg.

The Marijuana Index, which includes 18 producer titles, has been steadily increasing since November 2017, with very rapid growth recorded in the last days of the year.

Exit mobile version