Yell warns of continued pressure on revenues

Published on Tuesday 27 July 2010 21:52

YELLOW Pages firm Yell yesterday warned revenues will remain under pressure as small businesses continue to fret about the pace of economic recovery.

The directories firm reported a 10.6 per cent slide in revenues for the three months to the end of June and said underlying earnings were down by a similar rate.

It has been encouraged by better retention of print customers and further momentum in its Yell.com business, but said this was offset by uncertainty over the timing of a sustainable economic recovery.

"Until that time, our revenue will remain under economic pressure as small and medium sized business remain cautious about their future," it added.

Despite meeting its revenues guidance for the first quarter, Yell shares tumbled 19 per cent to 24.5p.

Chief executive John Condron said: "The economic outlook for small and medium-sized businesses and their level of confidence remain challenging, but our customers recognise the cost-effectiveness of our services."

Revenues from UK printed directories slumped by 19 per cent to 84.8 million in the quarter but customer retention improved by one percentage point.

Internet revenues grew by 3 per cent to 44m and now represent 33 per cent of all UK revenues, compared with 27.8 per cent last year.

However, the number of internet users in June fell 21 per cent to 8.2 million.