Further consolidation of Hispanic Yellow Pages …
Hispanic Yellow Pages of America (HYPA) acquired Southern Nevada Hispanic Yellow Pages Inc., previously published twice a year (circ. 25,000 per issue) by the Las Vegas Spanish-language weekly El Mundo (Escobedo family, circ. 30,000). HYPA also publishes La Raza Paginas Amarillas (circ. 180,000, semiannual) and Páginas Amarillas de Colorado (circ. 60,000, annual), a Spanish-language yellow pages directory serving Denver. HYPA is backed by Hispania Capital Partners, a Chicago based venture capital fund.
Consolidation within the Hispanic yellow pages industry is being driven primarily by venture capitalists (see “In the Hispanic market yellow is red hot,” page 17, Portada® No. 10, July/August 2004). Yellow pages are cost effective for advertisers. And, because Hispanics are much younger than the overall U.S. population, yellow pages sections like real estate, mortgages, employment agencies, education and home improvement have especially high growth potential. However, it can be difficult for industry consolidators to find properties that are large enough. Smaller yellow pages publishers get a sizable part of their business through barter agreements (e.g. a grocery store will pay for a listing with food).
…and new launches.
Hispanic Yellow Pages Network, backed by private equity house ABRY Partners, launched directories in San Antonio, TX and Phoenix, AZ during the first quarter of 2005. “Launching Directorio en Español in San Antonio is a logical step in the development of our Texas operation," explains Patrice Listfield, CEO of HYP Network. The Company presently publishes two titles in Dallas/Ft. Worth and two titles in the greater Houston area. Concurrently, the company is launching two titles to serve the Phoenix market. According to Listfield, both the San Antonio and the Phoenix markets, have characteristics that are conducive to successful directories, including significant and growing Hispanic populations, strong economic development, thriving Hispanic communities and a growing need for small and medium sized businesses to reach this important group of consumers. Listfield recently told Portada® that she estimates the Spanish-language Yellow Pages ad market volume at around US$ 100 million.
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