Revenues Show Impact of Economy, Competition
News: For the
first six months of 2002, large telecom-affiliated Yellow Pages publishers
in the United States grew by a negligible amount, as the struggling economy
combined with growing competitive challenges to soften revenue results.
In Europe, the situation was somewhat better. The publicly traded Yellow
Pages organizations reporting first-half results thus far posted revenue
gains of roughly 6 percent before factoring out acquisitions and publication
These results do not
paint a complete picture of the industry, as results from smaller, closely
held publishers were not available. However, the numbers do suggest that
organic growth in the core Yellow Pages directory was negligible in most
markets through the first half of 2002, suggesting an even more urgent
need to innovate both in the core product and the full range of online
or non-print opportunities.
companies, results were more mixed. Online directory player Switchboard.com
suffered a from a slower-than-expected roll-out of its relationship with
player Overture Services saw its revenues grow by 144 percent in the second
quarter, to US$152.2 million (first-half revenues were US$295.3 million).
This growth occurred although the number of paid ads declined from the
first to the second quarter of 2002.