Ziff Davis Posts Increase in 2006 EBITDA, Slight Decline in Revenues
Ziff Davis Media today reported $181 million in 2006 revenue, a slight decline from 2005, and $27.1 million in EBITDA, a dramatic improvement of nearly 60 percent from the $17 million in EBITDA it produced the prior year.
The company, which has been exploring strategic alternatives since the middle of last year, indicated recently that offering memorandums are out for each of its three units;Games, Enterprise and Consumer/Small Business;and that it will sell them separately if that’s what buyers want.
Revenues were essentially flat for the year, Ziff indicated in a statement, excluding the loss from two magazines that it shut down;Sync and ExtremeTech. However, fourth-quarter revenue increased nearly six percent;again excluding the two closed magazines. Ziff produced 56.7 million in the just-finished quarter, up by $2.8 million.
Ziff attributed its increase in EBITDA to earnings from its digital businesses more than doubling. Cost reductions and the absence of losses from closed publications also contributed to the improvement, the company said. Print EBITDA decreased, Ziff said, although it did not indicate by how much.
In terms of specific operating units, the Enterprise Group performed most strongly. It generated revenue of $23.1 million in the fourth quarter, versus $21.8 million in the same period in 2006. Its bottom-line increase was even more dramatic, increasing from $1.1 million to $5.6 million for the quarter. The Consumer/Small Business Group generated $22 million in revenue, flat from 2005, and $7.1 million in EBITDA, up $2.8 million from 2005. The Game Group performed the most poorly of the three groups in the fourth quarter, declining in revenue by $2.7 million, to $11.6 million, by almost half in EBITDA, from $3 million to $1.6 million.