Domain registrar’s business generating cash, but currency changes skew results.
At first glance Tucow’s second quarter earnings announcement today looked bad. The company lost a penny a share for the quarter, compared to earnings of 6 cents a share in the same quarter of 2009.
But then you dig into the details: the company realized a mark to market loss on foreign exchange of $1.9 million in Q2 2010; in the same quarter 2009 it realized a mark to market gain of $1.9 million. Also, last year the company earned $2.0 million related to its sale of interest in domain name registry Afilias.
Overall the company looks to be on an upward trajectory, with its OpenSRS, YummyNames, and Butterscotch units all reporting higher revenues than the same quarter last year. Tucows’ retail registrar, Hover, reported lower revenue but an even steeper drop (percentage wise) in costs of revenue.
Tucows will host its second quarter investor conference call this afternoon at 5 pm EDT.