Nov 6 Canadian telephone directory publisher
Yellow Media Inc reported a third-quarter profit, but
lower print segment sales dragged revenue down again.
Yellow Media has been struggling to stem a slide in sales in
its print business as more people shift to internet-based giants
such as Google Inc for local listings.
The company has faced declining demand for print ads in its
Yellow Pages and related directories and has had difficulty
selling online ad space and coaxing advertisers to buy prime
placements on its mobile platform.
Overall revenue fell 17 percent to C$267.7 million ($268.7
million). However, online revenue, which accounts for about 30
percent of total revenue, increased more than 5 percent to
The company laid out a plan in July to halve its C$1.8
billion debt, but amended it following opposition from some of
The recapitalization plan has received conditional approval
by the Toronto Stock Exchange.
The company had reduced its net debt to C$1.4 billion by
Yellow Media's British counterpart Hibu Plc has
also seen its core business decline while it grapples with net
debt of 2.18 billion pounds as of July 25. Hibu recently said it
would suspend loan payments until it restructured its balance
ADJUSTED PROFIT RISES
Yellow Media posted a net profit from continuing operations
of C$24.0 million, or 4 Canadian cents per basic share, in the
third quarter, compared with a net loss from continuing
operations of C$2.81 billion, or C$5.52 per basic share, a year
The year-ago quarter included an impairment charge of C$2.9
Adjusted earnings from continuing operations rose to C$77.1
million, or 15 Canadian cents per share, from C$69.2 million, or
14 Canadian cents per share, a year earlier due to lower cash
taxes and cash interest payments.
Shares of Montreal-based Yellow Media, which has a market
value of C$39 million, closed at 7.5 Canadian cents on the
Toronto Stock Exchange on Monday. The stock has lost about 60
percent of its value so far this year.