TLDH posts six-month loss

Kevin Murphy, June 20, 2012, 08:25:33 (UTC), Domain Registries

Top Level Domain Holdings has posted a loss of $2.2 million in its latest interim financial report.

The company, which is one of the largest new gTLD applicants, saw a loss of £1.4 million ($2.2m) for the six months ended April 30, on revenue that was up from £26,000 to £136,000 ($213,000).

Given that TLDH’s game plan is to make money selling domain names in many of the 92 new gTLDs it hopes to have an interest in, its profitability runway is still dependent to a large extent on ICANN’s schedule.

The revenue in its latest period came mostly from consulting services.

On the up side, the company’s balance sheet is looking much better; it had an extra £10.7 million ($16.8m) in receivables on its books as of April 30 (which appears to be its “investment” in ICANN application fees), as well as £4.3 million ($6.7m) cash.

Its interim report can be read in PDF format here.

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Comments (1)

  1. Robert Simon says:

    If you write a story on their recent earnings – you could almost reuse the same headline.

    TLDH Reports (yet another) 6 month loss
    http://www.proactiveinvestors.co.uk/companies/rns/130131tldh7520w

    Revenue for the six-month interim period was £241,000 (2011: £28,000) with finance revenue totaling £1,000 (2011: £4,000). Themain source of income was earned by advising on client gTLD applications.

    Administrative expenses totaled £1,212,000 (2011: £983,000). Share options expensed totaled £161,000 (2011: £134,000). The principal additional costs were incurred in hiring of additional staff and legal and professional fees in relation to processing the large number of gTLD applications.

    Retained loss for the period attributable to members of the parent Company totaled £1,009,000 (2011: £1,268,000) for a loss of 0.21 pence (2011: 0.36 pence) per Ordinary share.

    These guys are running out of money. Quickly.

    - Cash less current liabilities leaves £2.04m.

    - Current operational costs are £2.44m per year

    - At this rate the company will be insolvent by August – well before any registries launch

    - The company would already have had to be wound up if the directors not been forced to exercise their warrants to pump in working capital to keep it afloat in July 2012

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