Tucows notes: UNR price, plan to divide businesses

Firm has big plans for its structure in 2022.

Tucows (NASDAQ: TCX) noted earnings following 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 since 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 stated that the firm is taking action to further delineate its three operating segments. He stated they will operate more like businesses and no longer share people. Noss stated:

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 firm will release more details in the next quarterly note.

Also, the firm disclosed how much it paid for Frank Schilling’s UNR domain registry business, which was part of Uniregistry. As stated by its 10-Q, the firm paid $3.0 million less estimated assumed working capital liabilities of $0.5 million for the business.