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

More Videos

yes AI should be a course so many People Use AI https://g-techsolutions.com...

M Abdullah Khan

Is AI on course to take over human creativity? - Modern creative - CMO Australia

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the top retail technology.

Pooja Gupta

Donut King takes in-store marketing to the next digital level

Read more

this is very benefit for us we can through all the thing in this and its very benefit for city personhttps://g-techsolutions.com...

M Abdullah Khan

What does the Oculus Rift launch mean for marketers?

Read more

as we all known AI is very spread and alot of companies used ai and we take alot of work from AI https://g-techsolutions.com...

M Abdullah Khan

Making sense artificial intelligence - Food for thought - CMO Australia

Read more

virtual marketing have as much benefits as also disadvantageshttps://g-techsolutions.com...

M Abdullah Khan

The ethical debate facing marketers around virtual reality - Data-driven marketing - CMO Australia

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in