Bloomberg News

Yellow Media Records $2.9 Billion Writedown, Halts Dividend

September 28, 2011

(Updates share price.)

Sept. 28 (Bloomberg) -- Yellow Media Inc., the Canadian directories publisher that has lost 95 percent of its value this year, said it will record a C$2.9 billion ($2.84 billion) writedown this quarter after reviewing its assets.

Yellow Media will book the non-cash expense in the quarter ending Sep. 30, and eliminate its dividend after an Oct. 17 payment, the Verdun, Quebec-based company said today in a statement. As part of an agreement to amend the term of a C$1 billion loan, it will repay C$500 million and reduce the size of a revolving term loan from C$750 million to C$250 million.

Yellow Media is transitioning to digital media as customers increasingly search classified listings on smartphones and tablet computers. The company in July completed the C$708 million sale of its Trader Corp. unit, which publishes about 160 classified advertising magazines in a bid to counter losses from declining print revenue. It reported a second-quarter loss of C$14.3 million last month and cut its dividend by 77 percent.

The shares fell 28 cents, or 50 percent, to 29 cents at 1:53 p.m. in trading on the Toronto Stock Exchange.

--Editors: James Callan, Ville Heiskanen

To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net


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