REFILE-UPDATE 3-Yell CEO, CFO to step down; shares drop 18 pct

(Refiles to correct Reuters instrument code)

* 2009-10 sales down 14 percent to 2.12 billion pounds

* Adjusted EBITDA down 26 percent to 620 million pounds

* No replacements yet for CEO Condron, CFO Davis

* Net debt cut by 1.1 bln pounds to 4.9 times EBITDA

* Shares down 18 percent

(Adds background, updates shares)

By Georgina Prodhan

PARIS, May 18 (BestGrowthStock) – The chief executive and chief
financial officer of Yell (YELL.L: ) are to leave the struggling
UK yellow-pages publisher after preventing a debt crisis from
escalating into insolvency, sending Yell shares down 19 percent.

Yell did not name replacements for 60-year-old CEO John
Condron, who will retire after 30 years with the company, or CFO
John Davis, 48, who said he wanted to pursue new opportunities
after 10 years with Yell. Both will leave by next May.

Yell, which is fighting off new online rivals including
Google (GOOG.O: ), said it expected a long-term revenue decline to
slow this quarter, but gave no profit forecasts as confidence
among its core small-business customers remained fragile.

“Although their confidence is improving, our customers
remain nervous about increasing the levels of their advertising
spend,” said Yell, which makes half its sales in the U.S., 30
percent in Britain and the rest in Spain and Latin America.

Shares in Yell were down 18 percent to 38.59 pence by 0938
GMT on Tuesday, giving up almost all the gains they had made
this year.

“We retain our view that given the cyclical, structural and
now management uncertainty facing Yell, combined with its very
high leverage, the group remains a very high risk investment,”
analysts at London brokerage Numis wrote in a note.

Yell said it had cut net debt by 1.1 billion pounds ($1.6
billion) over its fiscal year to March 31 to 3.1 billion, or
about 4.9 times earnings before interest, tax, depreciation and
amortisation (EBITDA).

For the year, Yell reported a 14 percent decline in revenue
and a 26 percent drop in core profit at constant currencies, in
line with market expectations. It said it expected the revenue
decline to slow to 11 percent this quarter.

U.S. rival Dex One (DEXO.N: ), which recently emerged from
Chapter 11 restructuring and was formerly known as R.H.
Donnelley, in March forecast a 12 to 15 percent decline in 2010
advertising sales. [ID:nSGE6230HO]

Yell identified an extra 60 million pounds in savings for
the current year but said it would continue to invest in its
Internet business, as consumers increasingly search for local
information online, as well as revamping its print directories.

It said the seasonally weak next quarter would be similar to
the one just past in which sales fell 15 percent.

Yell shares had rallied 19 percent since the start of 2010,
outperforming the European media index (.SXMP: ) by 21 percent. At
Monday’s close, they traded at 5.8 times forward earnings,
compared with Italian peer Seat PG’s (PGIT.MI: ) 2.5 times.

Dex One is expected to make a 2010 loss.

Growth Stocks

(Reporting by Georgina Prodhan; Editing by David Cowell, Mike
($1=0.6935 pounds)

REFILE-UPDATE 3-Yell CEO, CFO to step down; shares drop 18 pct