Tucows shows average revenue growth but good earnings growth in Q3

               Tucows is a junior tech company that has shown tremenduous growth in the past 2 years.It has acquired several small software companies and internet companies and has seen it's revenues grow by multiples.And so has it's earnings; so that it's e.p.s. is greater than all but a few tech companies.But now revenues have started to level off.It is now almost time to use some of it's ample equity to move into internet advertising or else increase revenues from it's existing subsidiaries.
          Third Quarter Results
     Revenue was actually down from Q3 in 2017 but adjusted EBITDA was up by 27% and e.p.s. were up by 52%.While free cash flow was a whopping 54% higher than 2017.However the 9 month performance was good across the board with the most important financial indicator being e.p.s which was 13% higher and adjusted EBITDA which was 28% higher.The Tucows CEO attributes the gains to the sale of domain names and Ting mobile.But this blog sees this as a slow growing business and points Tucows towards increasing their online advertising business.
           The rest of the Year
This blog predicts that Tucows will gradually rely less and less on their traditional business of domaine names and Ting mobile.This niche is too narrow and there is not enough growth left here (see my blog on Econothon II dated Sept.3,2018).It must start to move to more profitable parts of the internet including online advertising.This blog has recommended a merger of sorts with Yellow Pages but this may not be the answer.Tucows may prefer to look at a number of smaller internet companies that are content producers and small internet advertisers.After all it is not in a corner; it has higher e.p.s than both Kinaxis and Shopify which are competitiors.As my blog on Econothon II of Sept.3,2018 states Tucows is now a good performer but needs a few changes to become a stellar performer.         https://www.fairfax.ca/ ;https://www.tucows.com/