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(Reuters) - Shares of telephone directory publisher Yellow Media Inc YLO.TO fell as much as 40 percent, after the company reported a C$2.9 billion quarterly loss and its print revenue slumped further.
The company, which has a market value of about C$72 million, had a net debt burden of about C$1.5 billion as of March 31. It has been trying to move its directory business away from print to an online model.
"The acceleration of the decline in revenue this quarter compared with the fourth quarter is going to continue, given it was caused by both a reduction in online growth and an increase in the pace of decline of print revenue," said analyst Maher Yaghi of Desjardins Securities.
Yaghi, who has a "sell" rating on the stock, cut his price target to C$0.01 from C$0.15.
Digital accounts for about 30 percent of the Montreal-based company's total revenue.
"We did expect the digital revenue growth to slow down ... but we did not think it would go from what was 20 percent in the fourth quarter of last year to 7.8 percent now," S&P credit analyst Madhav Hari said.
Standard & Poor's Ratings Services in February lowered its long-term corporate credit rating on Yellow Media to "B-".
"There is a heightened risk of a restructure of this company in a not-so-distant future," Hari said. S&P could further downgrade Yellow Media in the near future as it still has the company on credit watch with negative implication, he said.
Shares of the company were trading down at 6.5 Canadian cents on Tuesday morning on the Toronto Stock Exchange. They touched a low of 6 Canadian cents.
Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila