SOURCE: Simba Information

Simba Information

April 06, 2010 11:31 ET

YP Revenue Down 7.5% to $15.38 Billion in 2009; More Declines Projected in 2010

STAMFORD, CT--(Marketwire - April 6, 2010) -  U.S. yellow pages revenue is expected to decline 3% in 2010, according to Yellow Pages Market Forecast 2010, a new report published this week from media industry forecast and analysis firm Simba Information.

In 2009, yellow pages revenue in the U.S. declined 7.5% to an estimated $15.38 billion, driven primarily by the struggling U.S. economy, financial difficulties of major publishers and continued market adjustments of RBOC rates as they face stiff competition from independents and independent telcos.

Revenue for incumbent publishers is expected to decline to $10.62 billion in 2010 while independent publishers will return to positive numbers with a 2.8% growth to $4.39 billion, accounting for a 28.8% share of the U.S. yellow pages market.

Independents, which represented only 6.5% of the market in 1996 when the Telecommunications Act was passed, are projected to surpass $4.42 billion in 2012 to capture a 29.5% share.

"It all finally came together for the yellow pages industry in 2009--and not in a good way," said David Goddard, lead author of the Simba study. "Still shaken by the previous year's first industry-wide revenue loss in more than two decades, the publishers faced 2009 with two of the three remaining RBOCs and one major independent publisher going into bankruptcy and the largest independent publisher's parent company going to the banks for refinancing.

"And, as if this were not enough, the U.S. economy continued its downward spiral with owners of small and medium-sized businesses--the backbone of the yellow pages industry--finding themselves out of money, out of credit and sometimes out of paying customers," Goddard said.

Yellow Pages Market Forecast 2010 examines the industry with a focus on individual segments of the market including RBOC publishers, independent telco publishers, independent publishers, printers and suppliers to the industry.

About Simba Information
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