Troubled directories group Yell saw cash profits fall 10 per cent in the period to £231.4m and its eye-watering debt pile, while down £131m in the half, still dwarfs the group's market value.
The print and other directory unit, which generates 70 per cent of group revenue, is suffering most as customers turn to the web – sales there collapsed 17.7 per cent. While Yell's various geographic regions are under pressure – US sales fell 12.7 per cent, UK sales dropped 11.6 per cent sales and Spanish sales plummeted 15.3 per cent. Only Latin America, responsible for just 5 per cent of group revenue, recorded growth.
But digital services sales did soar 137 per cent to £63.6m – although that still represents just 8 per cent of group sales. Yet sales at the digital directories unit fell 13.4 per cent as usage declined. Still, total digital-related revenues do now represent 30 per cent of the group total, up from 25 per cent a year ago.
Bank of America Merrill Lynch expects full-year EPS of 5.78p (5.74p for 2011).
YELL GROUP (YELL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3.73p | MARKET VALUE: | £88.3m | |
| TOUCH: | 3.73-3.76p | 12-MONTH HIGH: | 17p | LOW: 3.28p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 1 | |
| NET ASSET VALUE: | 66p* | NET DEBT: | £2.6bn | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 896 | 33.2 | 0.90 | nil |
| 2011 | 787 | 69.2 | 2.10 | nil |
| % change | -12 | +108 | +133 | – |
*Includes intangible assets of £4.26bn, or 180p a share | ||||
