Tucows 2012 Annual Report Download - page 43

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38
The following table presents our cost of revenues, by revenue source:
Year ended December 31,
2012 2011
Wholesale
Domain Services $ 73,168,196 $ 63,491,433
Value Added Services 2,032,328 1,969,374
Total Wholesale 75,200,524 65,460,807
Retail 6,804,863 1,881,063
Portfolio 832,008 746,517
N
etwork, other costs 4,925,058 4,837,650
N
etwork, depreciation and amortization costs 755,280 836,045
$ 88,517,733 $ 73,762,082
Increase over prior period $ 14,755,651
Increase - percentage 20%
The following table presents our cost of revenues, as a percentage of total cost of revenues for the periods
presented:
Year ended December 31,
2012 2011
Wholesale
Domain Services 83% 86%
Value Added Services 2% 3%
Total Wholesale 85% 89%
Retail 8% 2%
Portfolio 1% 1%
N
etwork, other costs 5% 7%
N
etwork, depreciation and amortization costs 1% 1%
100% 100%
Total cost of revenues for Fiscal 2012 increased by $14.8 million, or 20%, to $88.5 million from $73.8 million
in Fiscal 2011 primarily the result of increased sales volumes. Prepaid domain registration and other Internet services
fees as of December 31, 2012 increased by $1.7 million, or 3%, to $57.5 million from $55.8 million at
December 31, 2011.
Wholesale
Costs for Wholesale for Fiscal 2012 increased by $9.7 million, or 15%, to $75.2 million, when compared to
Fiscal 2011.
This increase was primarily the result of increased domain registration volumes and increases in registration
fees paid to the registries that were implemented in January 2012 experienced during Fiscal 2012 when compared to
Fiscal 2011.
Retail
Costs for Retail for Fiscal 2012, increased by $4.9 million, to $6.8 million, when compared to Fiscal 2011. This
increase resulted primarily from an additional cost of $4.1 million incurred in Ting mobile device and service sales made
during the year, as well as the increased cost resulting from the additional volume in Hover services.