Sedo’s 2012 report: domain sales down 17.9%, parked domains down 14%, domains for sale down 5%

Sedo Holding AG published its Annual Report for the year 2012 today that reveals that while overall revenue is up by 6.6%, sellers and consequently buyers are leaving the Sedo domain platform for other services.

In the 2012 fiscal year, the Sedo Holding Group grew its sales revenue by 6.6% to a total of € 132.7 million (previous year: € 124.5 million). While the Affiliate Marketing segment boosted sales revenue by 17.7%, the Domain Marketing segment saw a decrease in sales, and Sedo blames the related drop in earnings, to the overall downtrend of the domain parking market. I don’t think that is the case. People are leaving Sedo because they are not satisfied with the service.

In the Domain Marketing segment, sales continued to decline, with € 31.7 million being generated in the 2012 fiscal year, compared with € 38.6 million in the previous year. (down 17.9%)

The number of domains tradable on the platform fell to 14.9 million as of December 31, 2012, following 15.7 million as of December 31, 2011. (down 5%)

In performance-based Domain Parking, around 3.8 million domains were available for marketing as of the balance sheet date (December 31, 2011: 4.4 million). (down 14%)

The 14% decrease in domain parking and the 17.9% decrease in domain sales is a result of the best domains leaving the Sedo parking platform.

As of December 31, 2012, the Sedo Holding AG share price stood at € 1.37, compared with € 2.65 at the end of the previous year. Reporting a 48.3% decline, the share consequently underperformed the overall market (DAX: +29.1%). The market capitalization reduced correspondingly from € 80.7 million at the end of 2011 to € 41.7 million at the end of the 2012 fiscal year.

For the 2013 fiscal year, the Management Board expects sales revenue to grow by around 10% compared with the 2012 fiscal year (2012 sales revenue: € 132.7 million), which is to be driven primarily by good growth in the Affiliate Marketing segment, and earnings before taxes between € 4.0 million and € 5.0 million. Based on an assessment of the current market, the management anticipates rising revenue and earnings contributions in the 2014 fiscal year.

Sold.Domains

About Konstantinos Zournas

Konstantinos studied Computer Engineering and Computer Science in London and lives in Athens, Greece. He loves domains and building websites. He is online since 1995, learned about html in 1996 and got into domains in 2002. He started the OnlineDomain.com blog in 2012.

2 comments

  1. This is off topic Kostantinos ” and wanted your input as you do alot with godaddy.

    Have you ever had godaddy’s first bidder fail to pay for the domain name in an auction, then have them email saying you have the opp to buy the name if money is received in 24hours.. But then GD pulls the offer out within the 24hours. This happen to us and it sounds fishy. How could they do this and why would they want to not offer us or allow us to pay for the domain name.

    Also when a name is registered at godaddy is their any reason to put a backorder with snapnames or namejet. As i can see whoever is the registar usally gets the domain name correct?

    Thanks for you input.

  2. Not surprising. DomainNameSales and Internettraffic were a sales breakthrough last year. Everybody else taking a bit at the corners. 2013 will be down again for Sedo I bet

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