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Wednesday, September 28, 2011

Yellow Media halts dividends, takes $2.9-billion charge | Investing | Financial Post

Yellow Media Inc said it will take a goodwill impairment charge of $2.9 billion in the third quarter and do away with future dividends.

The telephone directory publisher has been struggling to switch from print to the digital medium while managing its debt burden.

The impairment charge is a non-cash item and does not affect its operations, the company said in a statement.

The company and its lenders have agreed to amend the terms of its credit agreement following the rating downgrade.

Yellow Media gets about three-quarters of its revenue from selling advertisements in its Yellow Pages and related business directories, but the number of advertisements in its printed directories has been falling at a fast clip.

Yellow Media shares, which were worth around $14 in late 2007, closed at 59 cents on Tuesday on the Toronto Stock Exchange.

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