Tucows 2012 Annual Report Download - page 49

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44
During Fiscal 2011, the total new, renewed and transferred-in domain name registrations that we processed
increased by 1.2 million or 16% to 8.6 million registrations as compared to Fiscal 2010. This increase resulted primarily
from our continuing efforts to attract new clients and retain existing customers, as well as our acquisition of EPAG in
August 2011.
As of December 31, 2011, the total domain names under our management had increased by 1.7 million, or 19%,
to 10.5 million domain names, as compared to the total domain names under our management as of December 31, 2010.
This increase is primarily the result in our success at attracting new customers with increased transaction volumes and
includes the 0.4 million domains that were added through the acquisition of EPAG. In addition, we provide provisioning
services on a monthly basis to accredited registrars who use our technical systems to process domain registrations with
their own accreditation. The number of domain names we manage on behalf of other accredited registrars remained
essentially flat at 1.4 million at both December 31, 2011 and December 31, 2010.
Portfolio
During Fiscal 2011, Portfolio revenue increased by $0.3 million, or 4%, to $6.3 million when compared to
Fiscal 2010. This primarily resulted from increases in domain name sales from our portfolio of $0.6 million being
partially offset by lower advertising and other revenue through our two ad-supported content sites, butterscotch.com and
tucows.com, decreasing by $0.2 million and the delivery of third-party advertisements on parked pages decreasing by
$0.1 million.
Hover
Net revenues from Hover for Fiscal 2011 as compared to Fiscal 2010 increased by $0.7 million, or 15%, to
$5.3 million. We believe that this increase reflects the success of our marketing initiatives and improved website in
attracting new customers and retaining existing ones.
COST OF REVENUES
The following table presents our cost of revenues, by revenue source:
Year ended December 31,
2011 2010
Wholesale
Domain Services $ 63,491,433 $ 54,087,893
Value Added Services 1,969,374 1,996,317
Total Wholesale 65,460,807 56,084,210
Retail 1,881,063 1,527,727
Portfolio 746,517 882,912
N
etwork, other costs 4,837,650 4,648,899
N
etwork, depreciation and amortization costs 836,045 1,331,576
$ 73,762,082 $ 64,475,324
Increase over prior period $ 9,286,758
Increase - percentage 14%