CentralNic Group Plc (LON:CNIC), today announced its half year results for the six months ended June 30th 2016.
For the six months to June 30, the company reported £45.08mln of billings – the gross amount charged for domains before revenue sharing – which represents an 468% increase compared to the same period of 2015.
CentralNic’s revenue amounted to £8.9mln, double the £4.44mln in the first half of last year.
Gross profit was up 19% to £2.28mln, while it reported earnings (adjusted EBITDA) of £1.3mln.
The apparent step change in the business was in-part due to the acquisition of Instra Group in January.
Premium domain sales in 2015 did not re-occur in the first half of 2016 causing margins reduced to 26% from 43% last year.
It reported adjusted pre-tax profits of £948,000, though after tax the group made a £1.3mln loss.
CentralNic ended the first half with £9.25mln of cash and equivalents, and £6.04mln of net cash after borrowings.
CentralNic is the number one backend provider of new gTLDs globally with 34% market share or 8.2 m domain names but which seems to have generated revenue of just £1.6m which would be only £.20 per domain this added EBITDA contribution of £0.7m (£0.6m).
“.xyz continues to rank in the number one spot of all new gTLD’s with 6.5 million …Whilst the benefit has not translated into material earnings yet, due to heavy discounts, there are now significant volumes of domain names that will be up for renewal within the next 12 months. Although the scale of renewals is unknown (we conservatively assume 10% renewal rate), of the 6.5m .xyz domains, for every 1% that renew, CentralNic receives over £0.1m in EBITDA based on current renewal prices.
Additional domain extensions won in the period include .store, .fm, .am and .art.
Nick says
What a positive headline for a company that swung to a £1.306 million loss
Domo Sapiens says
I stay with these 2 facts:
“Premium domain sales in 2015 did NOT re-occur in the first half of 2016 causing margins reduced to 26% from 43% last year.”
”
““.xyz continues to rank in the number one spot of all new gTLD’s with 6.5 million …Whilst the benefit has NOT translated into material earnings yet, due to heavy discounts,….”
Michael Berkens says
Domo
In this case CentralNic is talking about its sale of some of its premium domain names (unrelated to new gTLD’s) last year, which did not reoccur in the 1st six months of 2016.
Domo Sapiens says
thank you for the clarification, premium inventory domains? or sub-domains?
quite vague if you ask me… and the mkt seems to have taken notice.
Michael Berkens says
Domo
I think the sales were two letter .com’s that allowed CentralNic to sell the third level registrations
Domo Sapiens says
Thanks again.