Yellow Media sales beat estimates on online growth

Telephone directory publisher Yellow Media Inc. (YLO-T) 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, 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 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 $1.8 billion debt.

The company had a net debt of about $1.4 billion as of June 30.

Yellow Media, which has a market value of $41 million, said revenue fell to $286.5 million from $342.7 million a year earlier. Revenue at its U.S. operations also fell.

Online revenue rose 4 percent to $89.7 million.

Net profit from continuing operations was $67.7 million, or 12 cents per basic share, compared with a net loss of $20.7 million, or 5 cents per basic share, a year earlier when it recorded higher cash taxes and other charges.

On an adjusted basis, it earned 18 cents per share.

Analysts on average had expected a profit of 12 cents per share on revenue of $284.1 million, according to Thomson Reuters I/B/E/S.