2nd Sep 2019 10:46
(Alliance News) - Internet domain seller CentralNic Group PLC said Monday its profit improved significantly following its major acquisition last year, with further acquisitions in the pipeline.
For the six months ended June, pretax loss narrowed to USD1.6 million from USD1.9 million the year prior. This was after revenue more than tripled to USD49.7 million from USD15.3 million the year before.
"In the first half of 2019 CentralNic's adjusted Ebitda exceeded our full year performance in 2018," CentralNic Chief Executive Officer Ben Crawford said.
Adjusted earnings before interest, taxes, depreciation & amortisation tripled to USD9.2 million from USD3.1 million the year prior. In 2018 as a whole, adjusted Ebitda stood at USD9.1 million.
Performance was "mainly driven" by CentralNic's acquisition of internet domain seller KeyDrive SA last year. In August 2018, CentralNic acquired KeyDrive for an initial USD35.8 million as well as deferred consideration of up to USD10.5 million.
"These outstanding results not only demonstrate that CentralNic can source and complete transformative acquisitions, but that it can also integrate them successfully while continuing to deliver organic growth," Crawford added. "Moreover, as we scale up rapidly, the underlying qualities of high recurring revenues and excellent cash conversion become increasingly meaningful."
CentralNic does not pay a dividend.
"Our pipeline of future deals remains strong, while our net debt level remains comfortable particularly given the profitability of the existing CentralNic Group and the expected contribution from recent acquisitions," Crawford continued. "We are confident in continuing our trajectory towards joining the ranks of the global leaders in our industry."
Net debt almost halved to USD6.0 million, from USD11.3 million a year prior. This was after cash levels jumped to USD17.9 million from USD10.4 million after raising EUR50.0 million through a senior secured bond.
Shares in CentralNic were 3.7% higher at 56.00 pence in London on Monday.
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