The cost of floating on the stock market has seen the UK's largest telephone directory publisher post wider losses.

Yell Group said the �77.3m cost of the float saw its loss widen to �80.5m ($126m) in the three months to June from �30.9m a year earlier.

The group raised �433m from its share offering, which valued the firm at more than �2bn - the UK's largest flotation in two years.

It used 35% of the funds raised to cut its debt, which stood at about �1.3bn.

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The company said it was "well on track" to meet full year expectations as turnover and earnings had continued to grow.

Turnover rose 5.5% to �262.2m, with US directory turnover up 18.7% and UK directory turnover rose 4.7%.

Pre-tax earnings were up 13.3% to �80m.

Chief executive John Condron said: "We continue to deliver strong organic growth, both in the UK and the US, with improved profitability and good underlying cash generation."

Mr Condron added the company was comfortable with analysts' full-year expectations of double-digit revenue growth in the US despite dubbing the market a "mixed bag".

The company, which has four businesses in the UK, also announced plans to double the number of its area-specific directories in London from five to 10 in the next financial year.