Yell Group - owner of Yellow Pages - yesterday shrugged off investor fears that it could be broken up following a probe by the Competition Commission into the classified directory advertising market.
Chief executive John Condron said it was still too early to predict the final conclusions of the Commission's report, due in August.
However, when questioned over a move to improve competition in the market, he replied: "The break-up option is still a possibility - but it was examined twice before and we see no merit in it."
In a statement last month the Commission said Yell continued to hold a "strong" position in the sector, despite the emergence of competitors such as BT Group.
BT has launched 171 printed advertising directories in the UK in the last year, while Google has launched Google Local, an online local advertising service.
However, the Commission also said that the internet was a separate market to printed directories, contrary to arguments by Yell.
Mr Condron said he will meet the Commission before it makes its final report, but also insisted the competition watchdog had "misinterpreted" data about the internet market for classified advertising.
"We found it hard to recognise the markets we participate in as the one they described," he added.
He added that the regulator had "underweighted some of the key impacts" including that of the internet and renewed competition from BT, which spun off Yell in 2001.
Meanwhile, Yell said its nine-month revenues and profits had surged on the back of strong growth in the US and at its own Yell.com web site.
The company said revenue for the nine months to December 31 increased 23.7 per cent to £1.11 billion - a 13.5 per cent increase excluding its acquisition of US publisher TransWestern.
Profit before tax rose to £220.6 million from £173.5 million a year ago.
"With these good results, we are confident that we are firmly on track to meet year end expectations," said chief financial officer John Davis.
In the UK, revenue rose 5.6 per cent to £492.6 million, with Yell.com revenues climbing 62.4 per cent to £41.9 million.
Print revenues rose 1.7 per cent despite a four per cent decline in the number of customers.
In the US revenue jumped 43.4 per cent to £618.4 million, or 17 per cent excluding acquisitions. Yellowbook.com, the company's US site, increased revenues by 51 per cent to $23.2 million (£13.18 million), with an additional $6 million (£3.4 million) from TransWestern's
Worldpages.com In a research note brokers Numis said: "We believe this is an encouraging trading update, particularly as US organic growth remains strong.
"However, given the ongoing uncertainty associated with the Competition Commission inquiry, our recommendation is hold."