Yellow Media sales beat estimates on online growth
(Reuters) - Canadian telephone directory publisher Yellow Media Inc YLO.TO reported quarterly revenue above analysts' estimates as online sales rose, sending its shares up 25 percent in morning trade.
Yellow Media and its U.K. counterpart Hibu Plc HIBU.L, formerly Yell Group, have struggled to stem the slide in their print businesses and pare huge debt loads as more people turn to internet-based giants like Google (GOOG.O: Quote) to find local listings.
Yellow Media, which has been struggling to sell advertising space in its traditional Yellow Pages and business directories, laid out a plan in July to halve its C$1.8 billion debt.
The company had a net debt of about C$1.4 billion as at June 30.
Yellow Media, which has a market value of C$41 million, said revenue fell to C$286.5 million from C$342.7 million a year earlier. Revenue at its U.S. operations also fell.
Online revenue rose 4 percent to C$89.7 million.
Net profit from continuing operations was C$67.7 million ($68.0 million), or 12 Canadian cents per basic share, compared with a net loss of C$20.7 million, or 5 Canadian cents per basic share, a year earlier when it recorded higher cash taxes and other charges.
On an adjusted basis, it earned 18 Canadian cents per share.
Analysts on average had expected a profit of 12 Canadian cents per share on revenue of C$284.1 million, according to Thomson Reuters I/B/E/S.
Shares of the Montreal-based company, which also plans to revamp its board, closed at 6 Canadian cents on Wednesday on the Toronto Stock Exchange. The stock has lost more than two-third of its value so far this year.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)
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