Ziff Davis Reports Third Quarter 2003 Results

Ziff Davis Holdings Inc., the ultimate parent company of Ziff Davis Media Inc., today reported financial results for the third quarter ended September 30, 2003. The Company’s consolidated revenues totaled $45.2 million, representing an 8.1% increase compared to revenues of $41.8 million for the third quarter ended September 30, 2002. Excluding properties closed during 2002, the Company’s revenues increased 11.1% versus the prior year period.
The Company’s consolidated earnings before interest expense, provision for income taxes, depreciation expense, amortization expense and non-recurring items (“EBITDA”)(1) was $6.6 million for the quarter ended September 30, 2003, compared to $1.2 million of consolidated EBITDA for the prior year period. This marked the Company’s fifth consecutive quarter of positive EBITDA.
Condensed consolidated statements of operations for the three months and nine months ended September 30, 2003 and 2002, respectively, and condensed consolidated balance sheets at September 30, 2003, June 30, 2003 and December 31, 2002, are set forth at the end of this release.
“Top-line revenue gains in our PC Magazine Group, Enterprise Group and Internet Group were welcome trends this quarter and combined with continued cost containment resulted in further improved earnings performance for the Company,” said Robert F. Callahan, Chairman and Chief Executive Officer of Ziff Davis Media. “Despite the continued slow recovery in general and tech print advertising markets and softness in the electronic videogame sector, we improved our EBITDA margin to 14.6% for the third quarter which speaks to the operating leverage we have in our business model. We remain cautiously optimistic about advertising market growth in future quarters, but we plan to continue our conservative focus on organic growth initiatives, cost controls and well thought-out brand and product extensions. We’re confident this strategy can further deliver top-line and bottom-line results for our customers, employees and stakeholders.”