Revenues from its printed business directories fell 10.9% year-on-year to £504.4m, compared with a rise in online revenues to £164.5m, although this comprises less than a quarter (24%) of total sales of £692m, down 5.5%.

The company, which publishes the Yellow Pages directories (printed by RR Donnelley), said in a statement: "Print customers decreased broadly, as expected, primarily as a result of planned lower new customer acquisition, with retention remaining relatively resilient.

"Overall print yield was broadly flat with cautious customer behaviour being nearly offset by the retention of higher value customers."

However, it maintained that "print continues to deliver high value to our customers".

As a group, the company showed revenues up 8.1% to £2.4bn and pre-tax earnings up 10.4% to £816.1m year-on-year.

However, it also booked a hefty non-cash charge in the form of a £1.3bn write-down of goodwill from its acquisition of Yell Publicidad, leading to a net loss of £1.14bn, compared with a profit of £206.7m in 2008.

Robust management of its costs, which included an announcement of 1,300 job cuts last November, helped it take £150m off its bottom line, in line with its goal of achieving £250m in cost savings.

The group maintained that it is in a strong position to continue to meet its debt obligations, but said it would review its options ahead of April 2011, when the majority has to be refinanced.

John Davis, chief financial officer, said: "Our operating cash flow at £730m is very strong, ensuring we have met our interest and scheduled debt repayments and have reduced our leverage.

"We have assessed the carrying value of our assets and have reduced the value of goodwill associated with the acquisition of Yell Publicidad.

"This recognises the effects of the long and deep recession. It does not affect our cash flow, adjusted earnings or debt covenant headroom."

In July last year, Yell Group also bought its long-term partner, Pindar Set – the directory division of Pindar Group. Pindar Set had partnered Yell for 28 years.

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