25th May 2016 09:56
LONDON (Alliance News) - Internet domain name seller CentralNic PLC on Wednesday said it remains confident in its outlook for 2016, as it reported a near tripling in pretax profit for 2015.
CentralNic recorded pretax profit of GBP1.5 million for the year, nearly tripled from the GBP520,000 it posted in 2014, as revenue rose 70% to GBP10.4 million from GBP6.1 million.
The company said all three of its divisions saw growth in revenue and profits. The roll out of new top-level domains sped up, and its Wholesale business benefited from the expansion, with 14 new generic top level domains launching during the year. Additionally, new top-level domain .xyz continued to occupy the market-leading position by volume.
CentralNic said it remains its intention to install a "progressive and commercially prudent" dividend policy in the future. However due to the continued expansion opportunities in its sector, it said it does not propose a dividend for 2015.
The company said that whilst there remains an ongoing "awareness shortfall" for consumers in terms of the new top level domains, adoption from high profile brands, such as Alphabet Inc taking up the abc.xyz domain name, has stimulated additional demand for .xyz domain names as well as media interest.
Following the year end, CentralNic acquired Instra Group for GBP16.0 million and it said the acquisition was "transformational", providing it with access to new markets, additional products, a strong customer base, well established brands and a white label offering.
"There is still work to be done to transform our business, but we have demonstrated positive steps with the acquisition and integration of Instra. Assuming continued progress in all areas of our business, at this stage of the year, we remain confident in the outlook for 2016," said Chairman Mike Turner in a statement.
Shares in CentralNic were up 1.6% at 46.22 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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