Revenue Drops, Value of Domain Portfolio Falls — Sedo Holding

Firm notes preliminary numbers for 2010.

Sedo Holding, parent firm of domain parking and sales firm Sedo, saw its revenue drop significantly in the 2010 financial year. It also took an earnings hit thanks to a devaluation of its own domain portfolio.

Revenue fell from EUR 135.3 to EUR 116.1 million in FY 2010. But this drop was expected since of a changed contractual relationship with a sizable affiliate marketing client. (Sedo Holding has two main businesses – domain names and affiliate marketing.) If you exclude that one client then sales increased EUR 6.9 million.

On the domain name side Sedo took a hit due to “unscheduled valuation adjustments” of its own portfolio of domain names totaling a whopping EUR 2.7 million in the fourth quarter of 2010.

The future looks better, though. Sedo Holding management expects to increase sales in 2011 at least 10% and to at least double earnings ahead of taxes.