Telstra directories sale positions Sensis for digital

Platinum Equity to acquire 70 per cent stake in Sensis for $454 million

Telstra has said its sale of Sensis to a US private equity firm is critical to transforming the White and Yellow Pages company into a "fully digital" business.

Telstra announced this morning that a US private equity firm, Platinum Equity, had agreed to pay $454 million for a 70 per cent stake in Sensis. Telstra will retain a 30 per cent stake in the directories business.

“Directories businesses right around the world have been experiencing massive change, and that has meant we’ve really had to readapt the business, and in fact Telstra’s probably one of the last telcos to own a directories business,” Telstra CEO David Thodey said on a call this morning with media and analysts.

“We think that to drive the further momentum to become a fully digital business, it’s an appropriate time to introduce a partner like Platinum Equity.”

Digital last year represented about 30 per cent of total revenue at Sensis, increasing at a rate of 11 per cent per annum, said Telstra CFO Andy Penn. At the same time, print revenues are declining at a rate of about 20 per cent per year, he said.

Even so, Thodey said there are no immediate plans to discontinue the print directories.

“We still think that there’s a place for a print version, especially in regional areas where there’s still an enormous use there, but there will be a tendency to use less and less print.”

“Knowing the way these changes take place, the tail is probably a lot longer than all of us think at the moment.”

Thodey said that the new Sensis entity would continue to print the Yellow Pages only in regions where it thinks are necessary.

“We find that the value of the Yellow Pages in some very dense metro areas is far less than in the rural, regional areas, so it will be a transition over a period of time.”

Sensis will continue to produce and distribute the White Pages Directory, and Telstra will continue to provide directory assistance (1223) services, as required under conditions of Telstra’s carrier licence, Telstra said.

Thodey said Telstra did not object to its regulatory obligation to produce the White Pages.

“We need to be considerate to those who are not feeling as well educated in digital access to this technology,” he said.

After the deal is completed, which Telstra expects to be in the second half of fiscal-year 2014, Platinum Equity will operate Sensis as a separate entity.

The sale is still subject to customary conditions including approval from the Foreign Investment Review Board. Getting the FIRB’s approval should be “reasonably straightforward,” said Penn.

Platinum Equity has proven itself adept at carving out businesses from major companies, including CBS, Emerson and Deutsche Post DHL in 2013.

Follow Adam Bender on Twitter: @WatchAdam

Follow Computerworld Australia on Twitter: @ComputerworldAU, or take part in the Computerworld conversation on LinkedIn: Computerworld Australia

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

5 cornerstones of a strong digital culture

Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.

Anthony Stevens

Founder and CEO, Digital Asset Ventures

Should you rebuild your company’s tech stack in blockchain?

The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.

Michelle O'Keeffe

CEO, Engaging.io

Customer value proposition: Getting the brand promise to your customers right

Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.

Ric Navarro

Global director of marketing and communications, Norman, Disney & Young

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018

Read more

Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...

Julia Summer

Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices

Read more

RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...

Ed Fry

Why sales and marketing alignment is more important than ever

Read more

Thank you for the good and very helpful information. It is very interesting. I love all the things you share and see your beautiful creat...

รัตนาวดี ภูมิวรรณ

Former eHarmony marketing chief joins telco startup

Read more

Colin Kaepernick, not Mike Kapernick.

thisisw

Zenith's innovation leader: Mid-digital age not benefitting media, brands or consumers

Read more

Latest Podcast

More podcasts

Sign in