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July 29 (Reuters) - Yellow pages directories publisher Idearc Inc IAR.N posted a lower-than-expected quarterly profit, as the weakening economy and a slump in print product revenue continued to plague its business.
The company posted a second-quarter profit of $76 million, or 52 cents a share, compared with $109 million, or 75 cents a share, in the year-ago quarter.
Idearc, which was spun off from Verizon (VZ.N) in 2006, reported a 5.7 percent fall in revenue to $759 million, missing analysts’ average estimate of $764.5 million.
On an adjusted pro forma basis, it earned 60 cents per share.
Analysts on average were expecting 68 cents a share, before special items, according to Reuters Estimates.
Print product revenue, which accounts for about 90 percent of the company’s revenue, fell 6.6 percent. However, Internet revenue rose 2.7 percent in the quarter.
The publisher of Verizon Yellow Pages directories and Superpages.com is in the process of moving to a multi-product revenue mix and increasing its Internet-based products to balance its mature print directories business.
Idearc also reaffirmed its 2008 view of a mid single-digit decline in amortized multi-product revenues and “some operating margin contraction.”
Shares of Dallas, Texas-based Idearc closed at $2.20 Monday on the New York Stock Exchange. Shares of Idearc and its U.S.-based peer R.H. Donnelley Corp RHD.N have lost more than 85 percent of their value year-to-date. (Reporting by Savio D‘Souza in Bangalore; Editing by Himani Sarkar)