Second-quarter profits at directory producer Yellow Pages Income Fund dropped by almost 14% to $116.8 million, the company said Thursday.
That compared with a profit of $135.7 for the same period in 2008.
But CEO and president Marc Tellier said he believes the telephone and Internet directory company showed a solid performance under difficult economic conditions.
“While we continue to manage our business with prudence, we are pushing ahead our efforts in market coverage and in the introduction of new products,” Tellier said in a news release.
“For YPG’s management team, these steps are critical to building a strong business and ensuring our long-term success despite the ongoing pressures we are experiencing in the marketplace.”
Online revenues for directories and vertical media combined were $75.2 million for the quarter. That compared to $61.4 million in the second quarter of 2008, about $300 million on an annualized basis, and represents organic growth of 23% in the quarter.
“In the face of challenging economic conditions, the priority in directories continues to be the introduction of new products,” the company said.
The current economic downturn is having its greatest impact on the Trader brand, which experienced its most difficult quarter to date. Trader, a publisher of items-for-sale directories, second-quarter revenues were $66.5 million, a drop of more than 26% compared with the second quarter of last year.
For the quarter, income from operations was $169.5 million, including restructuring and special charges of $20.6 million, compared with $185.1 million for the same quarter in the prior year.
Cash flow from operating activities in the second quarter of 2009 was $185.5 million compared to $181.8 million in 2008.
As part of its commitment to the environment, the company introduced the Yellow PagesTM ecoGuide during the quarter.
Developed in collaboration with environmental and municipal organizations, the ecoGuide is located in the front of all new Yellow PagesTM directories.
It includes local environmental services, a household items disposal guide, a list of environmental certifications as well as ways to help Canadians reduce their ecological footprint.
