EANS-News: Sedo Holding AG
1st half-year 2010 within expectations/// Pre-tax
earnings stable at EUR 2.8 million/// EPS up slightly
Montabaur (euro adhoc) -
Foundation laid for sustainable future growth
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Financial Figures/Balance Sheet
Subtitle: Foundation laid for sustainable future growth
Montabaur, August 26, 2010. Sedo Holding AG can look back on a stable 1st half-year 2010. Business progressed in line with the company´s expectations.
As expected, consolidated sales of Sedo Holding AG fell from EUR 72.7 million last year to EUR 56.6 million in the first six months of 2010. The main reason for the fall in sales is the changed contractual relationship with a major Affiliate Marketing customer as of the fourth quarter of 2009. Adjusted for sales revenues generated with this one major customer, sales increased by EUR 1.6 million (+3%). Due to a change in the sales mix, however, there was an increase in gross margin from 19.3% in the 1st half-year 2009 to 24.5% in the 1st half-year 2010. Earnings before taxes (EBT) remained stable at EUR 2.8 million. Earnings per share (EPS) improved slightly from EUR 0.05 in the same prior-year period to EUR 0.06.
Sedo Holding AG succeeding in improving its key market figures of relevance for future growth in both the Affiliate Marketing (affilinet) and Domain Marketing (Sedo) segments.
In Affiliate Marketing, there was a slight increase in the number of participating websites (483,000 compared to 477,000 in the same period last year), while the number of available affiliate programs was raised by 21.2% from 1,692 last year to 2,051.
In the Domain Marketing segment, the number of domains available for trading via Sedo rose by more than 26% to 16.7 million as of June 30, 2010, compared to 13.2 million on the same date last year. Over 7.3 million of these domains (prior year: 6.2 million) are available for marketing purposes, representing growth of around 18%. The number of registered members grew by over 22% compared to last year, from 0.9 million to 1.1 million.
The equity capital of Sedo Holding AG increased from EUR 91.3 million as of December 31, 2009 to EUR 93.7 million on June 30, 2010. The equity ratio rose from 74.2% to 77.4%.
"The first six months of 2010 are in line with our expectations," says Andreas Janssen, CFO of Sedo Holding AG. "In the field of Affiliate Marketing, we have returned to growth. Due to investments in our foreign business, however, the segment result for the first half of 2010 is below the corresponding prior-year figure," continues Janssen. "Our Domain Marketing business is also on the right track. The fall in sales was weaker and segment earnings improved," explains Janssen.
Based on current market conditions and the development of business so far, the Management Board continues to expect a year-on-year decline in sales for 2010 with a stable development of pre-tax earnings.
"Online advertising - and especially performance-based advertising formats - will continue to enjoy significant growth, albeit subject to macroeconomic fluctuations," says Tim Schumacher, Speaker of the Management Board of Sedo Holding AG. "Against this backdrop, we will continue to invest in our domain inventory in the Domain Marketing segment and cooperate increasingly with trade partners in our domain trading business. In the Affiliate Marketing segment, we will make further investments in our platform and significantly strengthen our sales activities outside Germany," explains Schumacher. "This will lay the foundation for our medium- and long-term growth. We expect rising growth in both segments in 2011 - and even significant growth in Affiliate Marketing," adds Schumacher.
About Sedo Holding AG Sedo Holding AG is a leading European supplier of online performance-based marketing solutions. With 323 employees and offices in 5 European nations and the USA, Sedo Holding AG focuses on its Affiliate Marketing and Domain Marketing segments with the brands affilinet and Sedo.
end of announcement euro adhoc
Further inquiry note:
Press contact:
Marcus Schaps
Head of Press and Public Relations
Sedo Holding AG
Elgendorfer Straße 57
56410 Montabaur
Germany
Tel: +49 (0) 2602 96-1076
Fax: +49 (0) 2602 96-1013
E-mail: presse-holding@sedo.com
Branche: Online
ISIN: DE0005490155
WKN: 549015
Index: CDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade