Yellow Media is continuing to make RIM’s stock look fantastic.
After cutting back its dividend in August, Yellow Media’s stock was slashed in half. Since then, it tumbled even further, dipping by 20% whent the company’s CFO jumped ship. Today, the share price has plummetted by another 50% on news of full dividend termination and a charge.
Yellow Media said on Wednesday it would take a C$2.9 billion ($2.8 billion) charge in the third quarter, sparking a 50 percent fall in its stock price. Yellow Media also said it will stop paying dividends after its October payment as it struggles to switch from print to a digital platform, while trying to manage its debt.
Noting that the publisher is “struggling to survive in the digital age,” Reuters points out that while Yellow Media has attempted to expand its digital arm, 75% of revenue is still coming from the dying breed of physical telephone directories.
“The last few months and the last week have been very challenging and we are disappointed with the performance of our securities as regards to all of our stakeholders,” Yellow Media President and Chief Executive Marc Tellier said during a conference call with analysts. “In essence, our message today is one of conviction. One of conviction that we have the right strategy and focus around our business transformation.”
Can Yellow Media survive in today’s high-tech world with so much reliance on print advertising?