Sea Profit Down 80% — Dark Blue
Domain firm sees profit plummet as revenue slips 6%.
Dark Blue Sea ASX (Code: DBS), parent firm of domain parking provider and domain registrar Fabulous, noted that profits for the second half of 2008 plummeted 80.5% compared to the same period in 2007 as revenue dipped 6.3%.
Revenue totaled $14.56M compared to $15.53M in the second half of 2007 (All dollar figures in Australian Dollars). The firm blamed a weakening United States ad market for the revenue decline. Profit totaled just $359,076 for the half. Favorable currency swings helped the firm.
Dark Blue Sea saw a sharp increase in the cost of traffic, counting higher renewal fees on its 515,000 firm owned domain names and payouts to parking partners. The firm is re-evaluating its portfolio based on changing economics. Operating cash flow was essentially flat, leaving the firm with almost $2.5M cash and short term investments.
Although advertising pay-per-click revenue (domain parking) declined, the firm saw increased revenue from domain registrations and sales of domain names. The firm will focus on its Domain Distribution Network, a domain sales platform, in 2009.
Shares of Dark Blue Sea are trading for $.20. The last stock trade was February 25.
