Yellow Media reported lower revenue and profits in the third quarter as the company continued to shift away from paper-based directories to digital products, which now account for more than half of its overall revenue.
The company said Wednesday it earned $26.5 million or 98 cents per share for the quarter ended Sept. 30 compared with $41.8 million or $1.51 per share a year ago.
Total revenue declined eight per cent or nearly $19 million to $218.4 million from $237.4 million in the third quarter last year.
Print sales continued to account for nearly half of Yellow’s total revenue but fell 22.8% from a year ago to $104.8 million, while digital revenue increased 11.9% to $113.6 million.
Yellow Media said much of the increase in digital came from the migration of its print customers plus the addition of new customers, who principally buy digital offerings.
Julien Billot, Yellow Media’s president and chief executive, said the company is making progress on its plan for a return to growth.
“We have hit key milestones during the third quarter of 2014, as digital revenues now represent over 50% of consolidated revenues,” Billot said in a statement.
“In addition, we have achieved our 2014 target for customer acquisition, continue to experience steady growth in traffic across our core digital properties, and remain active in optimizing our balance sheet through material debt repayment.”
He added Yellow accelerated its customer acquisitions this year and will invest “to maintain this momentum in 2015 by reinforcing our digital perception in the marketplace, growing traffic and leads across our digital media properties, and delivering small and medium enterprises an improved sales and customer service experience.”
