Yell recently published a financial report for the 2006 financial year.
UK revenue increased by 3% to £719 million. Their online directory Yell.com had a massive growth of 61% which accounts for the revenue increase.
Printed directory advertising is on the decline. It fell 3.1% as the total number of advertisers fell by 2.6% to 450,000. This equates to roughly 12,000 Yellow Pages customers walking away. Whilst this is predictable I doubt that Yell shareholders will be happy. In our opinion the only way to grow their business will be by pushing yell.com hard this year - look out for some healthy rate increases too.
Whilst DBS believes that yell.com can drive business your way there are also many other alternatives to explore in terms of internet marketing.