Revenues Down, EBITDA Up in Ziff Davis Third Quarter Earnings
Ziff Davis Holdings Inc. today reported third quarter consolidated revenues of $38.8 million, a decline of $1.4 million compared to the previous year. While the company’s online revenues increased 32 percent for the quarter, print revenues, excluding closed publications, decreased 14 percent.
The company’s consolidated EBITDA increased $4.4 million for the third quarter, compared to $1.5 million for the third quarter of 2005. The increase was primarily due to growth in the company’s online businesses and the absence of losses from closed publications and cost reductions, the company said.
Revenue for the enterprise group for the third quarter of 2006 was up 3.5 percent or $600,000 to $17.6 million. The increase was due to growth in the group’s online businesses, which grew 32 percent and contract publishing, which grew over 49 percent from a year ago.
EBITDA for the Group was $2.5 million, up from $200,000 in the third quarter of last year. The improvement was again attributed to growth in the group’s online business, improved margins in the custom event business, and cost reductions in the print and online businesses.
Revenue for the company’s consumer/small business broup for the third quarter 2006 was $12.2 million, down $3.5 million compared to the same period last year. The company attributed $1.6 million of the loss to the closure of Sync and ExtremeTech magazines. The rest of the decline was attributed to lower print advertising revenue at PC Magazine, partially offset by 18 percent growth in the group’s online revenues.
EBITDA for the Group was up 14 percent to $2.4 million, from a year ago primarily due to the elimination of $900,000 of losses associated with Sync and ExtremeTech magazines. PC Magazine EBITDA declined due to lower advertising revenue partially offset by cost reductions. Online EBITDA was flat due to investment in new online properties.
Revenue for the game group for the third quarter of 2006 was $9 million, flat from a year ago. The EBITDA loss for the group of $500,000 was lower than last year’s EBITDA loss of $800,000 due to reduced costs associated with print revenues.
Ziff Davis owner Willis Stein & Partners announced in July that the company is officially for sale. Analysts predict the company will more than likely sell in parts and say the enterprise or b-to-b group is the most attractive group to investors.