UPDATE 1-Yell names CEO as sales fall faster; shares drop

* Ex-Cisco manager Michael Pocock new CEO from Jan. 1

* Q2 organic revenue down 12.1 percent

* Shares drop 18 percent

(Adds details, background)

LONDON, Nov 9 (BestGrowthStock) – British yellow-pages publisher
Yell (YELL.L: ) named ex-Cisco (CSCO.O: ) manager Michael Pocock as
its new chief executive and reported an accelerated slide in
quarterly sales, sending its shares down 18 percent.

Yell, whose CEO and last chief financial officer both
announced their departure in May, said its customer base of
small businesses had not yet regained economic confidence,
resulting in a second-quarter sales decline of 12.1 percent.

For the first half, revenue fell 11.2 percent at constant
exchange rates to 896 million pounds ($1.45 billion), and
adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) fell 12.2 percent to 265 million pounds.

“Our revenues are directly related to the confidence small
businesses feel, and small businesses continue to see little
evidence of economic recovery,” outgoing CEO John Condron said
in a statement.

The company said it would still meet full-year profit
expectations by cutting costs.

Yell shares fell as much as 18 percent and by 0817 GMT were
trading down 13.9 percent at 13.4 pence, against a flat European
media index (.SXMP: ).

“Yell remains our least preferred stock in the sector and
has to be seen as a high risk, speculative investment,” Numis
analysts wrote in a note, putting their recommendation and
target price under review.

Yell is labouring under structural as well as cyclical
pressure as consumers increasingly use Google (GOOG.O: ) and other
search engines to find details of local businesses instead of
using Yellow Pages directories.

New CEO Pocock was general manager of Linksys, the home and
small business networking division of network equipment giant
Cisco, from 2006 until 2009. He was previously CEO of Polaroid
Corporation and an executive at Compaq Computer Corporation.

“We do not underestimate the structural, cyclical and
financial challenges facing him,” Numis wrote.

Last month, Yell appointed ex-Colt (COLT.L: ) and EMI
executive Tony Bates as its new finance chief.

Yell last year struck a deal with creditors to extend its
debt until 2014 and followed that with a 660 million-pound
rights issue.
(Reporting by Georgina Prodhan; Editing by Jon Loades-Carter)
($1=.6201 Pound)

UPDATE 1-Yell names CEO as sales fall faster; shares drop