BT Planning Return To Paper Directories Business

Communications Today, August 7, 2002

BT Group Plc [BTY] Tuesday said it plans to return to the paper directories business as part of an effort to raise GBP100 million (US $156 million) by March 2005 from new directories and listings services. The company is planning the move in anticipation of falling revenues from its directory inquiries service when it opens to full competition next year.

BT sold its classified directories business, Yell, in May 2001 as a means to reduce debt. This past May, BT restored its dividend and posted 2002 first-quarter profits that beat analysts' expectations.