Pages Jaunes group

Résumé du document

The consolidated balance sheet indicates that the Pages Jaunes Group has 56,129 thousand euros of share capital and 98,676 thousand euros of issue premium. The share capital is composed of 280,644,450 common stocks (ordinary stocks) each with a par value of 0.2 euros. As observed in the statement of stockholders' equity, the company carried out a capital increase of 75,534 euros in 2007 (through the creation of 377,670 new common shares) and 295 434 euros in 2006 (1,477,170 new common shares). The impressive evolution of the total equity, which became negative in 2006, is mainly due to the evolution of the dividends paid and consequently to the impact on the retained earnings. Indeed, in November 2006, exceptional dividend distribution was effected and concerned 2,519,7 million euros. This distribution is exceptional and differs from the traditional dividend distribution realized in May (cf. note 24.4): in 2006 284 million euros were distributed (i.e. 1.02 euros per share) and 303.1 million euros in 2007 (i.e. 1.08 euros per share). All these dividends (exceptional and normal) were declared and paid during the year as shown in the consolidated cash flow statement in which « Dividends paid » decrease the net cash from financing activities.

Extraits

[...] PagesJaunes is ranked second in this market with a market share, behind TPI market share). PagesJaunes also publishes the official telephone directories of the Lebanon and Luxembourg (businesses not owned at 100%) and operates Kompass, a worldwide business database, in France, Spain, Belgium and Luxembourg. Finally, through Wanadoo data, PagesJaunes offers a range of direct marketing and geographical services of group sales). PagesJaunes has high brand recognition PagesJaunes has almost 2,200 sales representatives in charge of customer loyalty and winning new clients. [...]

[...] Firstofall we can have the auditor acreditation in the financiel report available on the Pages Jenes' website. Then we can find more detals on the documents written by the Auditors and given to the AMF. It's clear that in a company like Pages Jaunes, the notifications from the Auditors are not so interesting because it is a huge business whith a very good knowledge in temrs of finance and the internal control must already check a lot of things in the Accounting departement of the firm. [...]

[...] Compensation packages vary and are performance related. PagesJaunes, which owns the brand name, is well known in France, with spontaneous brand recognition of 47% and assisted brand recognition of 99% (source: PagesJaunes). The group has grown its business over the years by capitalising on new technologies such as paper directories, the Minitel, the Internet, wireless phones, interactive TV and more. High fixed costs business As the group's publishing costs are relatively fixed (roughly one-third of operating charges), while its marketing costs of charges) are tied to commercial performance, any increase in sales should substantially widen margins and hence group earnings. [...]

[...] The company also uses derivative financial instruments in order to manage the rate risk associated with the variable rate debt the PagesJaunes Group arranged in 2006. Theses financial instruments are : - an interest Swap contract - a collar A particular note is associated to the treatment of these derivative financial instruments which are measured at fair value in the balance sheet and gains and losses arising from re-measurement at fair value of derivatives instruments are systematically recognised in the income statement (excepted in certain cases also evoked in the note) Investing decisions Investment in productive assets The accounting method used to record intangible assets and amortization is explained in the note 3.9 Other intangible assets. [...]

[...] The note 12 explains how the basic earnings per share (EPS) and the diluted EPS is calculated : actually, there is a dilutive effect because of the existence of 3.4 million stock options and 0.8 million shares that could be granted free of charge in 2008 and 2009. Thus the diluted EPS is slightly lower than the basic EPS. The basic divested EPS is calculated by dividing the net income of the divested business in 2007, by the number of shares in circulation. The division made between the activities can be considered as a justification of the divestment realized during 2007 but also as anticipation for the future. [...]