R.H. Donnelley Corp., the biggest independent U.S. publisher of Yellow Pages directories, reaffirmed its 2007 sales forecast of $2.67 billion and reported first-quarter sales of $663 million on expansion of local listings on the Web.
The company was expected to have revenue of $667 million, the average of five estimates compiled by Bloomberg. Net income and per-share data for the period will be reported to the U.S. Securities and Exchange Commission by the end of the month, spokesman Tyler D. Gronbach said in a telephone interview.
Chief Executive Officer David Swanson is pushing to broaden Donnelly's online business as advertisers migrate to the Internet, said Maurice McKenzie, an analyst with Signal Hill Capital Group in Baltimore. The January 2006 purchase of rival Dex Inc. doubled the company's sales, adding print and online operations in 14 states, including Colorado and Arizona.
``This is clearly a benefit,'' McKenzie said in an interview before results were released. ``Dex is a vanguard in online research.''
Donnelly bought Englewood, Colorado-based Dex for $4.2 billion to expand in Western U.S. markets. The company also publishes online directories in partnership with Internet companies including Google Inc. and Yahoo! Inc.
Financial results reported today don't include tax items and items affected by taxes because the analysis isn't yet complete, the Cary, North, Carolina-based company said in the statement.
Shares of R.H. Donnelley rose 57 cents to $78.37 as of 4:02 p.m. in New York Stock Exchange composite trading. The stock has gained 41 percent in the past 12 months.
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