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, a Denver company that has owned the rightas tothe region’s largest Yellow Pages producty since 2002, blames the delag on printer changes and organizational About 140 of its 900 directories are being delayed nationwide. Cincinnati is the largest market affected. “It’s a stinking deal,” said Brenda controller for inClermont County. Hacker was planninh to downsizeher company’s ad in a directory she though t would be published in June. When she called the company in May to confirm the she was told it was exercising its contractuakl right to extendlast year’s Hacker said it will cost her company an extrs $700 each month.
“It’s just not right, what they’rw doing to people,” she said. Local Insight spokeswoman Pat Nichols said 75 percent ofits 10,0090 local customers will be unaffected by the Those are companies that plan to maintain the same ads they had last year or Local Insight CEO Scott Pomeroy is askint business owners angered by the delay to call the company’w customer service line, (888) 237-8570, although it’zs not clear what steps the company will take to address “If the product’s not delivering valuw to them, our customedr service department is prepared to talk to those Pomeroy said.
“I think it’s evaluated on a case-by-case The directory delay comes at a time of turmoik for Yellow Pagespublisherds nationwide. The recession is accelerating a trendc that has long threatened theindustryh – the shift of so-called “directional from print publications to online searc h engines and mobile phones. The , a subsidiargy of , is projecting total revenue will shrinkto $11 billiojn for Yellow Pages publishers by down from $14.4 billion in 2008. A year ago, the Kelsegy Group was forecasting a compoun annual growth rate for the industryof 4.5 Now, it’s minus 5 percent.
“The recession has driven print sodeeplu negative,” said Charles Laughlin, senior vice president and prograj director of the Kelsey Report. Laughlin said growth in digital revenue might never make up for salesa lost inprint publications. “Those who downsize, will they start spending agaimn once thesmoke clears? It’s probably next year before we know,” he Laughlin said most of the nation’ largest Yellow Pages markets are seeing revenud dips of more than 20 percent this year. Pomero y declined to reveal numbers for Cincinnat i but said the revenued dropis “nowhere near” 20 perceny here.
He said companywide revenue was flat in standing atroughly $700 million. Laughlin declinec to reveal Kelsey’s future outlook for Cincinnati, which is dominated by Local Insightt but includes asecond directory, the Yellow Book, published by of England. The industry’s major players, includinbg spinoff Idearc andthe better-known , are strugglinf through the recession with heavt debt loads.
Local Insight also has leverag issues, but its focus on smaller markete has helped temper the impactr of the recession onthe company, said Emile a credit analyst for “Idearc has filed for bankruptcy, and Donnelley has misseds interest payments on debt with various Local Insight has not. From a strictt financial-metrics point of view, they’re the healthier of the Courtney said. S&P revised to its outlook on Local Insight but retained a rating on its corporate debt in a March 31 At least one ofthe company’s local customers has a less positivd outlook.
“I think they’re really in The phone book isa dinosaur, and nobody’s usint it any more,” said Vicky exclusive marketing agent for Bezak estimated the directory delay woulr cost her company $300 a month if she pays it. “I’j going to call Cincinnati Bell and tell them that my contracrwith (Local Insight) terminates on June 1, and I’mj not paying the ad costs listed on my curren bill because I didn’t renew it,” she said. Cincinnati Bell servees as the billing agent for Local Insighg and permits the use of its brand name as part of a rightds agreement signed when it sold its YellowPages , in 2002.
But Cincinnatj Bell is not involved inthe company’s operations otherwise, according to Lisa McLaughlin, a public relations consultant for
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