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CentralNic doing okay out of new gTLDs

Kevin Murphy, May 26, 2016, 14:31:50 (UTC), Domain Registries

Local former rival Minds + Machines may be struggling to turn a profit, but CentralNic seems to be doing quite well out of this new gTLD malarkey.

But not as well as you might expect. Large growth at its clients does not appear to have translated to a whole lot more revenue for CentralNic itself.

The company yesterday reported 2015 profit before tax of £1.45 million ($2.13 million), compared to £520,000 in 2014, on revenue up 71% at £10.39 million ($15.28 million).

While it may be best known nowadays as a back-end registry provider, its revenue is now fairly evenly split over its three reporting segments.

CentralNic runs the back-end registry for volume gTLDs including .xyz and Radix’s .site, .online, .website, and .space.

The company calls this “wholesale domain sales”, and it brought in £3.12 million last year, compared to £2.82 million in 2014.

You might think that the volume success of .xyz, which added about a million names in 2015, might have translated into a bigger boost, but it didn’t.

Its registrar business, which it got into through the acquisitions of Internet.bs and Instra, brought in £3.4 million, compared to £1.55 million in 2014.

Its third segment, “Enterprise including Premium Domain Name Sales” saw revenue of £3.85 million, compared to $1.69 million.

The enterprise business, which also included two software licenses and revenue from dot-brand clients, is easily the most profitable segment, with a 67% EBITDA margin. For wholesale, it’s 44%.

The £3.8 million of enterprise revenue included £3.22 million premium name sales, of which over £3 million came from a single buyer.

It’s not clear whether this was a single domain deal or a package of premiums, but it represents the most volatile element of CentralNic’s revenue.

Update (May 30) — This article originally misidentified “Company A” and “Company B” in CentralNic’s accounts as registry clients. In fact, according to CEO Ben Crawford, they’re registrar channel partners.

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