Ziff Davis Shows Extra Profit, Game Group Loss

Ziff Davis Media, which owns three major North American-distributed game magazines (Electronic Gaming Monthly, Games For Windows and Official U.S. PlayStation Magazine) and the 1UP.com game website, today announced its third quarter financial results, with increased profits over the whole company, but a continuing loss for the Game Group. The company's overall profit for the period were $4.4 million, compared to $1.5 million a year ago, an increase owed primarily to Ziff Davis' online division, which saw revenue increase by 32 percent over the prior year. By comparison, Ziff Davis' print revenues decreased by 14 percent, compared to a year ago, though the absence of losses from closed print publications, including Sync and ExtremeTech, and cost reductions also contributed to the company's overall improvement. Consolidated revenues for the third quarter 2006 totaled $38.8 million. Looking to the company's Game Group specifically, 2006 third quarter revenue for the division was $9.0 million, essentially flat compared to the same time last year, with a loss of $0.5 million for the division, compared to a loss of $0.8 million the previous year. According to an official statement, a decline in print advertising and circulation revenues for the Group's three print magazines were “mostly offset” by the substantial rise in revenues from the Group's online presence. "Our third quarter results reflect Ziff Davis' continued transformation into a fully integrated media platform serving our valuable customers," commented Ziff Davis Holdings chairman and CEO Robert F. Callahan. "Our digital product lines posted sharp revenue growth of 32%. During the quarter, overall advertising revenues, especially print, were impacted by major product delays from the world's leading technology and videogame companies, as well as the industry's largest technology product recall. Our teams remain steadfast in their ability to create innovative new content while controlling costs."