- Tucows Inc. (TC) reported its financial results for the Q4 ended December 31, 2020
- Most of Tucows’ mobile customer’s relationships were sold to DISH Networks
- Net revenue for the fourth quarter of 2020 was US$70.8 million
- Net income for the fourth quarter of 2020 was US$2.1 million, or US$0.19 per share, a decrease of 64 per cent from US$5.8 million
- Tucow (TC) is down 1.12 per cent and is trading at C$104.99 at 1:22 pm EST
Tucows Inc. (TC) reported its financial results for the Q4 ended December 31, 2020.
Effective August 1, 2020, most of Tucows’ mobile customer’s relationships were sold to DISH Networks as part of Tucows’ transition of its mobile business to a Mobile Services Enabler (MSE) model.
Accordingly, the results of the Mobile Services business in the Network Access segment for the Q4 of 2020 reflects operations under the new MSE model with prior periods being composed entirely of operations under Tucows’ previous MVNO model.
As a result, revenue and gross margin for Mobile Services in the Network Access segment for the fourth quarter of 2020 are lower than those for the fourth quarter of 2019.
“The fourth quarter was a solid finish to a very good year for Tucows,” said Elliot Noss, President and Chief Executive Officer, Tucows Inc.
“Revenue and gross margin from our Domains and Ting Internet businesses, excluding the impact of large bulk domains sales from our Domains Portfolio in prior year periods, increased 6 per cent and 13 per cent year over year, respectively, for the fourth quarter, and for all of 2020 were up 5 per cent and 13 per cent,” added Noss.
Net revenue for the fourth quarter of 2020 was US$70.8 million, a decrease of 18 per cent from US$85.9 million for the fourth quarter of 2019.
The majority of the decrease was the result of the absence of Ting Mobile MVNO revenue in the fourth quarter of 2020 following Tucows sale of its Ting Mobile customer relationships to DISH and the related earn-out being recognized as Other Income.
The decrease was also due in part to a USD$1.5 million bulk sale in the Domains Portfolio business in the fourth quarter of 2019 that was not repeated in the fourth quarter of 2020 as Tucow exited its Domains Portfolio business at the end of 2019.
Net income for the fourth quarter of 2020 was US$2.1 million, or US$0.19 per share, a decrease of 64 per cent from US$5.8 million, or US$0.55 per share for the fourth quarter of 2019.
Tucows is a provider of network access, mobile technology services, domain names and other Internet services.
Tucow (TC) is down 1.12 per cent and is trading at C$104.99 at 1:22 pm EST.
