Yell profit warning as revenue drops 12 per cent
Wednesday 16 February 2011
The directories group Yell issued a profit warning alongside disappointing third-quarter results yesterday, sending the Yellow Pages owner's stock down by 11 per cent by the end of the day's trading.
Group revenue dropped by 12 per cent to £1.4bn in the nine months to the end of December, while profits collapsed from £47.6m to £23.4m, the company said.
Yell is struggling as printed directory listings shift to the internet. It has also been hit hard by the impact of the recession on its small-business customers.
Although digital media revenues were up by slightly more than 10 per cent to £342m in the first three quarters of the year, print revenues dropped by more than 18 per cent to £937m. And full-year earnings are now expected to come in "slightly below" expectations. The newly appointed Yell chief executive Mike Pocock – who joined the company from IT networking specialist Cisco at the start of the year – will unveil a new strategy for the company this summer.
Mr Pocock yesterday acknowledged the challenges the company faces from "economical pressures and, more fundamentally, from the shift to digital media".
But he stressed the value of the Yell brand and its 1.4 million-strong customer base among small and medium-sized businesses. "It will take time to change the revenue trajectory and to secure the available synergies but we can see a course for Yell to return to sustainable profitable growth and we believe Yell has the business base and financial strength to achieve this," he said.
Mark Payne, a former vice-president at Cisco, is to join Yell as chief operating officer.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she "lied" to husband about failed drugs tests
Israel-Gaza conflict: The myth of Hamas’s human shields
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...
£380 - £480 per day: Orgtel: Business Analyst - Banking - Edinburgh - £380 - ...