Tucows 2013 Annual Report Download - page 51

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Retail
6,804,863
1,881,063
Portfolio
832,008
746,517
Network, other costs
4,925,058
4,837,650
Network, 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
%
Network, other costs
5
%
7
%
Network, 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.
53
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 to $4.1 million incurred for Ting mobile device and
service sales made during the year, as well as the increased cost resulting from the additional volume in Hover services.
Portfolio
Costs for Portfolio remained relatively flat at $0.8 million for Fiscal 2012 as compared to Fiscal 2011.
Network Costs
Network costs remained relatively flat at $5.7 million for Fiscal 2012 as compared to Fiscal 2011.
These results reflect our improved efficiency in operating and managing our co-location facilities, which has also
enabled us to decrease our capital spend on network equipment.
SALES AND MARKETING