Sedo says domain parking continuing to decline, writes off EUR 57.1 million
Company says intense competition and overall decline in domain parking are hurting its business.
Sedo Holding, which runs Sedo and affiliate marketing company Affilinet, recently released first half financial results.
Last month I wrote about how Sedo had lowered expectations for domain parking. Now the company says its domain parking business trajectory is worse than expected.
The Sedo segment of Sedo Holding declined 17.9% in the first half of 2012 compared to 2011. Revenue fell from EUR 20.1 million in the first half of last year to EUR 16.5 million this year.
While domain name sales are fine, parking woes continues to plague the company. Sedo says the overall decline in domain parking continues, but it also faces competition from “new and price-aggressive” parking providers. (I suspect Frank Schilling’s Internet Traffic is one of those.)
The company also said domain parking is being hurt by “advances made in browser technologies, which alters the circumstances surrounding monetization in the parking business”
As a result, Sedo wrote off a whopping EUR 57.1 million of goodwill in its domain marketing segment.
You can read the full first half report here (pdf).