Weakness in its print division continues to hurt the Yellow Pages directories publisher, with revenue falling 11 per cent to £383.3m, and Ebitda down £20.2m to £109m.
Print and other directory revenue fell 19 per cent, while digital services revenue more than doubled in the quarter ended 30 June.
A company spokesman told City A.M. the results are in line with management forecasts.
Yell, which was relatively slow to adapt to the shift to online advertising, is battling competition from a host of new online services offering local information, and from online giants such as Google which offer global advertising solutions.
Last Thursday, the company set out a recovery plan that focuses on a digital strategy it says will help it return to growth in four year’s time. However, analysts remain unconvinced, with its shares losing a fifth of their value on the day the plan was unveiled.
Yell shares have lost nearly a third of their value since then. They closed at just 6.48p last night, valuing the company at about £176m.
The firm, which narrowly avoided insolvency in 2009 and had net debt of £2.83bn at 31 March, is exploring options for its debt pile and has already been talking to its major lenders.
Last week it agreed to buy US technology start-up Znode for $20m, pushing its shares up nine per cent.
Yell says Znode gives it e-commerce technology it can use to connect small businesses with consumers on a local level. It will be incorporated into the group as part of a new division, called Yell Connect.