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CentralNic To Meet Market Expectations As Profit Hit By Costs

8th May 2014 11:44

LONDON (Alliance News) - CentralNic Group PLC Thursday expressed confidence in achieving its commercial targets for 2014 and said it was well positioned to meet market expectations, as it saw pretax profit hit by higher administrative costs in 2013.

CentralNic manages an internet distribution platform, and also receives revenue from the sale of internet domain names.

The company posted a pretax profit of GBP701,000, down from GBP835,000 in 2012. Revenue rose to GBP3.1 million from GBP2.9 million but was offset by higher administrative expenses and GBP66,000 in share-based payments.

Revenue growth was driven by strong deferred revenues from previous periods, continued growth in annuity billings, and consulting revenues from new top-level domains.

The company listed on the AIM market in September 2013, and raised GBP5 million in its initial public offering.

CentralNic said it had made progress against its goals of securing new retail channels and obtaining new inventory through commercial and government contracts, including investments in new top-level domain applicants.

CentralNic said that 25 of its initial top-level domain applications were uncontested and are guaranteed to be powered by it when they launch. Another 26 applications are contested between CentralNic's clients and other applicants, and it expects that it will get distribution rights for some of these top level domains.

Profit margin increased to 76.6% from 73.4%, as the company was able to grow its revenue from domain registry at a minimal cost increase, CentralNic said.

Following the year end, the company launched five new generic top level domains during March and April: .wiki, .xyz, .ink, .bar and .rest. It won distribution contracts for four additional top level domains: .website, .press, .host and .space.

Shares in CentralNic were trading up 0.4% at 62.75 pence Thursday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2014 Alliance News Limited. All Rights Reserved.


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