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Yell shares fall despite online ad profits
Shares in online advertising site Yell Group have fallen on the back of growing concerns about the slowing UK economy, despite online ad sales rising.The company admitted that advertising sales in its printed directories of the Yellow Pages had fallen in the last 12 months, but that online ad sales had risen significantly.
This means profits before tax at the firm in the nine months to the end of December last year were £216 million, up from £175 million in the same period the year before.
Yell chief executive John Condron explained: "We are experiencing tough conditions in the UK. We have almost replaced regulatory pressures with trading pressures.
However, online advertising is still making huge strides, with the Investors Chronicle predicting that search advertising will make up 30 per cent of UK advertising spend by 2013, equating to £5 billion.
And according to the Internet Advertising Bureau, online advertising spend increased by 25 per cent in the last three months of 2007.
Online Advertising news posted on 08 February 2008
