SOURCE: Simba Information

Simba Information

August 02, 2011 10:11 ET

For Yellow Pages, Digital Is Key to Emerging From Financial Crisis: Simba Information

STAMFORD, CT--(Marketwire - Aug 2, 2011) - As directory publishers advance through the financial crisis that shook the yellow pages industry, challenges remain in the move toward a digital future, which is expected to churn out 2.5% revenue growth by 2013. A recent report by media and publishing forecast firm Simba Information notes the health of the industry is contingent on its evolution from print to digital.

According to Simba, financial challenges are significant for publishers Ambassador Media, Dex One and SuperMedia, who have recently emerged from bankruptcy even after shaving off a large chunk of their debt. The same is true for Local Insight Media, which went into bankruptcy court in late 2010, and its affiliate Caribe Media, which filed in May 2011. After consolidating their print directories and cutting down costs, the publishers are now facing difficulties in expanding onto a digital platform, the report asserts.

"There's a lot of debt out there from borrowing over the past decade or more to fuel expansion," said Dave Goddard, Simba's senior yellow pages analyst. "Because so much money is being spent on repaying debt, it's difficult to support an investment in the transition from print to online without borrowing, and few can borrow today."

Although the industry is expected to decline slightly through 2012, it will post revenue growth of 2.5% in 2013, rounding off the industry at $12.7 billion. Yell Group ranks among publishers exciting the industry turn-around by leading the digital transformation. They are aiming to change their model to 75% online operations and 25% print by 2015. According to the report, industry growth is contingent on publishers expansion of internet advertising and services.

"The demise of the yellow pages industry is not imminent, but the evolution of the industry from print to digital is definitely going to happen and at varying speeds," added Goddard. "Most of the remaining publishers are relatively strong and can adjust to the new technologies that will carry them forward into the digital world, while still making a profit from the shrinking print."

Simba Information's report "The Yellow Pages Bankruptcies 2011: Financial Crisis" delivers an industry-wide perspective on how publishers and suppliers have emerged after bankruptcy and where the industry will evolve to survive in the future. Along with revenue projections, the report provides company profiles and status updates for Ambassador Media, AT&T, Dex One, Local Insight Media, Quad/Graphics, SuperMedia, User-Friendly Media, Yell Group, and Zip Local.

About Simba Information:

Simba Information is widely recognized as the authority for market intelligence in the media and publishing industries. Its extensive information network delivers top quality, independent perspectives on the people, events and alliances shaping the industry. Simba's monthly newsletter Yellow Pages & Directory Report provides continuous updates on the yellow pages industry, and the firm routinely assists clients and the press with publishing- and media industry analysis. Follow us on Twitter and LinkedIn.

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