Earnings: Ziff Davis’ Revenues Down 30 Percent
By Rafat Ali - Tue 21 Aug 2007 05:15 PM PST
The troubled tech media firm Ziff Davis reported its Q2 numbers today, and the picture still doesn’t look great, despite selling off its enterprise division recently. Revenues totaled $16.5 million for Q207, down $6.6 million or 29 percent from the prior year. Digital revenues increased 14 percent versus prior year. Revenues from its print publications, excluding the effect of closed publications, declined by 31 percent versus prior year.
It had net losses of $39.3 million for Q207, compared to $32.9 million loses in Q206. EBITDA from the company’s digital businesses was relatively flat versus year ago, while EBITDA from the company’s ongoing print publications declined $2.3 million versus the prior year quarter. Revenues for the Game Group were $5.5 million, reflecting a decrease of $3.2 million or 37 percent compared to the $8.7 million reported in the same period last year. Revenues for the Consumer/Small Business Group were $11.0 million, reflecting a decrease of $3.4 million or 24 percent compared to the $14.4 million reported in the same period last year.
This comes as the company is going to default on its debt payment, announced last week. More earnings details in release.
From its 10-Q filing, also filed earlier today, this warning based on its debt burden should come as no surprise: “The uncertainties described above raise substantial doubt about our ability to continue as a going concern, and to realize our assets and satisfy our liabilities in the normal course of business. No adjustments have been made to the accompanying financial statements related to this uncertainty.” Also from the 10-Q, outgoing CEO Bob Callahan will be paid about $1.4 million in equal installments over the next year, while the newly appointed CEO Jason Young’s salary is $600K per year, with $400K in bonus if the company reaches certain targets.
Posted in: Information, Biz & Fin, Media, Magazines, Money, Earnings
