New TLD revenues not growing as fast as you might expect.
Domain name company CentralNic (LSE:CNIC) reported its audited 2015 results today.
The company reported (pdf) £10.4 revenue in 2015, compared to £6.1 million the year before. Some of the jump is attributed to the acquisition of Internet.bs, which contributed £3.3 million revenue in its first full year as part of CentralNic. In 2014, after it was acquired in June, it contributed £1.51m. Another chunk was thanks to higher sales of premium domain names.
The company’s adjusted EBITDA was £3.2M and profit after tax of £0.9M.
As always with domain name companies, it’s important to note that they have to recognize revenue over the life of a domain registration. That’s why billings/cash sales/cash flow are important.
CentralNic had 2015 billings of £26.87m, a 172% increase over 2014.
Given that CentralNic is the registry behind .xyz and Radix’s TLDs, it is surprising to see that its wholesale division (which includes new TLD revenue) had revenue of £3.13m last year, only about £0.3 million more than the prior year.
New TLDs operated on CentralNic’s platform hit 4 million in February.
This chart is particularly interesting:
This suggests that none of its backend providers generated more than £0.4 million for the company last year. Remember, this is revenue, not sales. Still, it seems that CentralNic is charging its larger registry customers well under $1 per name, perhaps with very high discounts once they hit a certain threshold.
On the domain name resale/premium side, the company disclosed that it currently owns about 37,000 domain names available for resale. Last year it pulled in £3.22m from selling premium domain names.
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Source: domainers mag
Peeking inside CentralNic’s annual report
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