Telstra - Sensis Pty Ltd

Synopsis

Sensis is an advertising information resource forming part of Telstra Corporation’s digital media division. Since its inception in 1991 the company’s core business has been advertising through its White and Yellow Pages print directories, which at its peak was distributed to 97% of Australian metropolitan households. The number of printed directories has fallen steadily in recent years as the operator’s print rationalisation created a single regionalised version of these directories, ad as consumers opted for digital searches in preference to the physical directories.

Despite the migration from print to digital, the operator continues to see an alarming decline in revenue, particularly since the peak reached in 2009. Although the migration to digital has seen an increase in digital-based revenue, overall revenue is expected to decline further in coming years. In early 2014 Telstra offloaded a 70% interest in Sensis to a US-based equity firm, for a sum far below market expectations. Telstra’s remaining interest suggests management’s confidence that the division will improve its performance in coming years, while retaining a foothold in some services.

Other divisions included in the Sensis portfolio include:

• sensis.com.au;
• Sensis 1234;
• Sensis Mobile;
• CitySearch, an online city guide; and
• Whereis products and services which deliver location and navigation services.

This report provides an overview of Sensis including market analysis and an assessment of financial and operating performances to FY2013.

Key developments:

Digital media, advertising, search and directions online content, Telstra’s sale of a 70% interest in Sensis to Platinum Equity.

Companies covered in this report include:

BigPond, 1234, Whereis, Telstra, Citysearch, Sensis, FOXTEL, Quotify, Yelp, Trading Post.