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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in