DGAP-Adhoc: Sedo Holding AG: Preliminary results for the first nine months of 2013 and adjustment of the forecast for FY 2013

Sedo Holding AG / Key word(s): Preliminary Results/Change in Forecast

24.10.2013 18:10

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Cologne, October 24, 2013 - Sedo Holding AG (ISIN DE0005490155) has today
published its preliminary consolidated results for the first nine months of
2013 and is also adjusting its forecast for its full 2013 fiscal year.

Based on preliminary figures, Sedo Holding AG achieved 5.5% growth in sales
revenue to EUR 104.1 million in the first nine months of 2013 (previous
year: EUR 98.7 million). Earnings before interest, taxes, depreciation,
amortization and write-downs on domains (EBITDA) rose from EUR 3.6 million
in the prior-year period to EUR 4.3 million. Accordingly, earnings before
taxes (EBT) also increased from EUR 2.7 million in the previous-year period
(excluding EUR 60.3 million of negative one-offs resulting from impairment
charges) to EUR 3.5 million. Earnings per share (EPS) stood at EUR 0.06 -
compared with EUR -1.95 of EPS in the prior-year period, which were
burdened by the aforementioned impairment charges.

In the Domain Marketing segment, sales revenue totalling EUR 20.8 million
was generated in the first nine months of 2013, representing a 13.3%
year-on-year decline compared with the previous year's EUR 24.0 million.
This drop in the Domain Marketing segment reflects the domain parking
market's overall downtrend. Around 4.1 million domains were available as of
the reporting date for advertising marketing in the area of
performance-based domain parking (December 31, 2012: 3.8 million). In
contrast to this, the Domain Trading segment registered slight growth. The
number of domains tradable on the platform rose to 16.4 million as of
September 30, 2013 compared with 14.9 million as of December 31, 2012.

In the Affiliate Marketing segment, revenue reported growth of 11.2% during
the first nine months of 2013, rising from EUR 74.8 million to EUR 83.2
million. Overall, this segment fell significantly short of budget despite
this revenue growth. This was due to a seasonally particularly weak summer
quarter in Affiliate Marketing in Germany, as well as to structural changes
in the way that partner programs in the major customer business are
invoiced, which are accompanied by expected long-term negative impacts on
revenue and earnings. The number of partner programs increased by more than
14.5% during the first nine months of 2013 to 3,291, and the number of
connected websites by 5.3% to 591,000.

Given the significantly-below-budget 5.5% revenue growth during the first
nine months of 2013 and the worsening prospects for the fourth quarter of
2013 as a consequence of the structural changes in the way that partner
programs in the major customer business in Affiliate Marketing are
invoiced, the Company can no longer retain its existing revenue forecast
(10% growth compared with EUR 132.7 million of revenue in the 2012 fiscal
year). The Company now anticipates sales revenues of around EUR 140 million
and - given the lower expected revenue - earnings before taxes at the lower
end of the previously forecast EBT range of EUR 4 million to EUR 5 million
for the full 2013 fiscal year.

Contact:
Marcus Schaps
Head of PR
Sedo Holding AG
Elgendorfer Straße 57
56410 Montabaur
Germany

Phone: +49 (0) 2602 - 96 1076
Fax: +49 (0) 2602 - 96 1013
email: presse-holding@sedo.com

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Language: English
Company: Sedo Holding AG
Im Mediapark 6
50670 Köln
Germany
Phone: +49 - (0)221 / 34030-560
Fax: +49 - (0)221 / 34030-564
E-mail: holding@sedo.com
Internet: www.sedoholding.com
ISIN: DE0005490155
WKN: 549015
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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