The company reported an 8 pct drop in revenue and a 9 pct drop in recurring EBITDA for the first quarter.

As of March 31, the company had net debt of 1.106 billion euros (0.84 billion pounds), it said.

SoLocal Group's sales growth would continue to be constrained by debt repayments for most of 2016, Chief Executive Officer Jean-Pierre Remy said in a statement.

The company sees a positive impact from the restructuring from the fourth quarter of 2016 at the earliest, it said.

For 2016 SoLocal Group said it expects internet revenue growth of 0-2 pct and an EBITDA-to-revenue margin of at least 28 pct. Internet revenues represented 83 pct of total revenue for the first quarter, the company said.

(Reporting by Alan Charlish; Editing by Keith Weir and Alexandra Hudson)