UK based Yell (Yellow Pages Publisher) is to raise £660 million in share issue that will allow Yell to restructure its debt pile of £3.8bn.

Yell also reported a fall in interim earnings caused by a decline in revenues from printed directories.  Pre-tax earnings fell 67% on revenue decline of 4%.  The revenue and earnings decline was due to the poor performance of printed telephone directories, whose sales declined by 20% in the UK, 18% in the USA and 28% in Spain.  In contrast Internet revenue continued to expand with Yell’s websites sales increasing by 9% in the UK, 28% in the USA and 17% in Spain.

The strategy of acquiring market share through debt financing has turned into a fiasco for many yellow page publishers.  Source:  Financial Times

BIIA Newsletter November – December 2009 Issue