Simba Study: Yellow Pages Revenues to Grow 3.3% to $15.99 Billion in 2005

Business Wire, March 29, 2005

STAMFORD, Conn. -- Simba Information, the leading source for market intelligence and analysis, reports U.S. yellow pages revenues are expected to grow 3.3% to $15.99 billion in 2005, fueled chiefly by directory launches by independent directory publishers as they expand into new markets, according to Simba's latest strategic market report, "Yellow Pages Market Forecast 2005."

"Yellow Pages Market Forecast 2005" details how the yellow pages operations of the telco directory publishers, including the four regional Bell operating companies (RBOCs), which account for the lion's share of industry sales, are expected to grow revenues by 1.1% to $12.99 billion in 2005, while non-telco independent publishers will boost revenues 13.9% to $2.99 billion.

The overall 2005 industry growth is in line with that of 2004, when yellow pages revenues in the U.S. rose 3.9% to an estimated $15.49 billion, fueled primarily by double-digit revenue growth at independent publishers.

As a share of the overall U.S. advertising market, yellow pages revenues slipped from an estimated 6% in 2003 to 5.8% in 2004, demonstrating the fact that yellow pages is a lag industry, tied to the U.S. economy, but reflecting market conditions one to two years behind the current environment due to ad sales cycles that take place far in advance of directory releases.

According to David Goddard, Lead Author of the "Yellow Pages Market Forecast 2005," one of the hottest trends that will shape the industry in 2005 is a continued strong market for mergers and acquisitions, marked by the planned sale of TransWestern, the second-largest U.S. independent publisher. Additionally, the report points to a growing competitive hotbed in large metro markets, as strengthening independent publishers go head-to-head against incumbent RBOC publishers with the launches of new books; and the further penetration of Spanish-language directories into Hispanic strongholds. "Yellow Pages Market Forecast 2005" also includes a detailed analysis of how yellow pages publishers are integrating online components into their -- to date -- far more lucrative print products.

Elsewhere in the industry, Simba's research showed the market for printers and suppliers to the yellow pages industry rebounded in 2004, following flat performances in 2002 and 2003. Despite a slight drop in its directory print run to 290 million in 2004, R.R. Donnelley remains the market leader, according to "Yellow Pages Market Forecast 2005."

A comprehensive analysis of the current landscape of the U.S. yellow pages publishing industry can be found in "Yellow Pages Market Forecast 2005." In addition to a full, detailed breakdown of market size and growth, the report profiles 29 leading players in the U.S. yellow pages industry, including traditional print publishers, printers and suppliers, and Internet-only yellow pages publishers, analysis of revenue growth and perspective on future business strategies for each company. Additional information can be found at www.simbanet.com.

About Simba Information:

Simba Information, an R.R. Bowker company, is widely recognized as the leading authority for market intelligence in the media and publishing industry. Simba's extensive information network delivers top quality, independent perspective on the people, events and alliances shaping the media and information industry. Simba publishes newsletters and research reports that provide key decision-makers at more than 15,000 client companies around the globe with timely news, analysis, exclusive statistics and proprietary industry forecasts. For more information, please visit www.simbanet.com, call 1-888-BOWKER2 (1-888-269-5372), or e-mail marketing@bowker.com.