Yell profits drop 21%

Yell have posted a drop in first half revenues drop of 13.2% with a 21% fall in profits for the same period.

Yell also issued guidance that it doesn't see a great improvement and predicts a 16% drop in the third quarter.

It is another indication that Yell is now in the thick of a tough market area and despite having huge resources at its disposal, is in direct competition with major search engines for traffic.

Whilst online revenue advanced by 17% it only represents 20% of Yell's overall earnings.

Yell also informed the market that it is raising £660 million by way of placing new shares. Yell are £4 billion in debt.