YELLOW PAGES publisher Yell had some rare good news for investors as its first-quarter trading bettered the City's worst fears.

The company has halved its dividend and dropped out of the FTSE 100 Index in recent months, but said it had made a good start to the year after strong internet growth.

Shareholders have seen the stock fall by more than 80 per cent in the past 12 months, but Yell's update lifted shares almost 13 per cent.

Yell said online operations, which include Yell.com, now accounted for an `increasingly significant' share of group revenues, up to 16 per cent from 12 per cent a year ago.

The firm also surpassed City hopes with an eight per cent rise in underlying earnings to £160.8m in the three months to June 30.

Chief executive John Condron expects further pressure on revenues as the year progresses, but added: "Overall, Yell continues to show resilience despite the increasingly difficult economic times." Tweet