Ziff-Davis revenue hit by ad slump

NEW YORK - Ziff-Davis Media has reported a sharp drop in revenue and earnings for the first quarter, as it suffers from the slowdown in advertising sales.

The company publishes 13 business and consumer technology magazines in the US including PC Magazine, Interactive Week and the Official US Playstation Magazine.



Revenue for the quarter was $78.9m (£55.3m), compared with $125.6m (£88m) in the same period a year earlier. The decrease was mainly because of a 47.5% decline in advertising pages, offset by a 9.6% increase in advertising revenue per page.



Earnings before interest, taxes, depreciation and amortisation were $3.5m (£2.4m), compared with $32.4m (£22.7m) a year earlier.



"As we all know, the US economy is challenged," chairman, president and CEO James Dunning said. "This is adversely impacting the technology market, including many of our customers, and ad-supported media specifically in the technology advertising market. We continue to make difficult but necessary adjustments to the business through our restructuring plan so that it is strategically aligned with the current market conditions."



The company's cost-cutting measures have included laying off 23% of its workforce, reducing its office space and closing its consumer magazine FamilyPC.



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