Communicate.com reports record high revenues, net income
Communicate.com Inc., which develops, owns and markets niche-market web sites like Karate.com and Perfume.com, reported record first quarter revenues of $978,326, up 97% from $496,109 a year earlier. Record net income increased 195% to $133,472 from $45,221 in 2004’s first quarter. It was the ninth consecutive quarter of positive net income, the Vancouver, British Columbia-based company said.
First quarter product sales totaled $640,989, compared to $229,561 in the year-ago period. Advertising revenues rose to $337,337 from $66,548 in 2004.
During the company’s first quarter, which ended March 31, the company announced an agreement to acquire more than 650 dot-coms, including ShoppingBound.com, ResortBound.com and FitnessBound.com. Including those sites, the company now has a total of 900 sites, which are evenly divided among retail products sites and travel sites, a spokesman says.
Only three of its sites -- Perfume.com, Cologne.com and Karate.com -- currrently process e-commerce sales, though the company expects to have another three sites operating with e-commerce next year, the spokesman says. The other sites operate as advertising sites, through which Communicate.com earns referral fees under an arrangement with Yahoo Search Marketing, a unit of Yahoo Inc.
Communicate.com relies on market-focused, single-word web site addresses that enable its sites to attract customers through natural Internet search, providing for growth without excessive marketing costs, the company says.
Communicate.com owns 94% of Domain Holdings Inc., which serves as the operating company listed on its web sites.
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