Sedo Holding AG published its consolidated financial results for first three months 2013.
Although total Revenue grew of 7.3% to EUR 36.9 million, “This growth was particularly driven by the Affiliate Marketing segment.”
“The Domain Marketing segment was down 14.1% , to EUR 7.3 million compared with the previous year’s EUR 8.5 million of revenue.”
“The Domain Marketing segment remained confronted by the challenges of a falling market and growing competition, by contrast, as well as new and price-aggressive providers, which is why the revenue decline continued, as expected”.
“The number of domains tradable on the platform rose to 16.6 million as of March 31, 2013 compared with 14.9 million as of December 31, 2012.
From this pool, around 4.1 million domains (December 31, 2012: 3.8 million) were available as of the reporting date for marketing in the area of performance-based domain parking.
Both revenue and the related earnings decline within Domain Marketing reflect the overall fall in the domain parking market.
In the Affiliate Marketing segment, on the other hand, revenue reported marked growth of 14.7% during the first three months of 2013, rising from EUR 25.9 million to EUR 29.7 million.
The number of partner programs increased by 3.1% to 2,961, and the number of connected websites was up by 0.9% to 566,000.
This growth is attributable to the strategy change (expansion of the major customer business and our internationalization drive), which had already been introduced in 2012, as well as specific improvements in the operating business.
Earnings before interest, taxes, depreciation, amortization and write-downs on domains (EBITDA) fell from EUR 2.4 million in the previous year to EUR 1.7 million.
Earnings before taxes (EBT) were down from EUR 2.2 million in the previous year to EUR 1.5 million. Earnings per share amounted to EUR 0.03, following EUR 0.04 in the previous year.
Sedo Holding AG lies within the scope of its budgets with the revenue and earnings growth trends that it achieved in the first quarter of 2013, and continues to expect revenue growth of around 10% of the full 2013 year compared with the 2012 financial year (2012 revenue: EUR 132.7 million), and earnings before taxes of between EUR 4.0 million and EUR 5.0 million – driven especially by the Affiliate Marketing business.
| Key consolidated figures | Jan.-Mar. 2013 | Jan.-Mar. 2012 | Change |
| iin EUR million | |||
| Sales revenues | 36.9 | 34.4 | +7.3% |
| EBITDA* | 1.7 | 2.4 | -29.2% |
| EBT | 1.5 | 2.2 | -31.8% |
| Net income | 0.8 | 1.3 | -38.5% |
| EPS in EUR | 0.03 | 0.04 | -25.0% |
* EBITDA – result of operating activities before depreciation, amortization and write-downs on domains.
