Sedo Holding Revenue Drops, Value of Domain Portfolio Falls
Tuesday, March 22nd, 2011
Company reports preliminary numbers for 2010.
Sedo Holding, parent company of domain parking and sales company Sedo, saw its revenue drop significantly in the 2010 financial year. It also took an earnings hit thanks to a devaluation of its own domain portfolio.
Revenue fell from EUR 135.3 to EUR 116.1 million in FY 2010. But this drop was expected because of a changed contractual relationship with a large affiliate marketing customer. (Sedo Holding has two main businesses – domain names and affiliate marketing.) If you exclude that one customer then sales increased EUR 6.9 million.
On the domain name side Sedo took a hit due to “unscheduled valuation adjustments” of its own portfolio of domain names totaling a whopping EUR 2.7 million in the fourth quarter of 2010.
The future looks better, though. Sedo Holding management expects to increase sales in 2011 at least 10% and to at least double earnings before taxes.