Company has big plans for its structure in 2022.
Tucows (NASDAQ: TCX) reported earnings after the market closed today.
Its revenue was essentially flat year over year. Revenue increased in its growing fiber business, decreased in mobile services (in part because of the sale of its MVNO business in Q3 last year), and was basically flat in the domain business. The domain business includes Enom, OpenSRS, Hover, and a few other brands.
On a pre-recorded investor conference call (pdf), Tucows CEO Elliot Noss said that the company is taking action to further delineate its three operating segments. He said they will operate more like businesses and no longer share people. Noss said:
In 2022, we will move to a structure that looks much more like three separate businesses with the parent, TCX, acting as more of a holder of a portfolio of assets and a capital allocator.
Based on his remarks, this seems like more than just a reporting alignment. Noss intimated that each business might be able to attract its own capital. The company will release more details in the next quarterly report.
Also, the company disclosed how much it paid for Frank Schilling’s UNR domain registry business, which was part of Uniregistry. According to its 10-Q, the company paid $3.0 million less estimated assumed working capital liabilities of $0.5 million for the business.