Minds + Machines posted an operating profit of almost £3 million ($4.9 million) for the first half of the year, almost entirely driven by the proceeds of losing new gTLD auctions.
The registry record a profit to June 30 of £2.9 million on revenue of $68,000.
The “profit on gTLD auctions” line item that permitted that seemingly impossible profit number was £7.1 million ($11.6 million), based on M+M losing eight out of 12 private auctions.
The company had £22 million ($36 million) in cash and other current assets on its balance sheet at the end of the period.
None of M+M’s big TLDs had launched in the first half, hence the low revenue. Since the half ended, .london has proven successful and several more new gTLDs wholly or partially owned by M+M have also launched.
In his statement to the market, chair Fred Krueger said:
A key variable in our financial position is the dynamic of private auctions, which we have embraced, and which has worked tremendously to our advantage. We believe that our current still contested strings represent significant assets which we have the potential to monetize either to further our existing new TLDs or to purchase additional new TLDs at auction.
He also reiterated CEO Antony Van Couvering’s call for a new metric to track gTLD registry health that is based on revenue-per-domain rather than simple volumes.
His outlook for new gTLDs was arguably less cautious than his counterpart at CentralNic, which reported its half-year numbers yesterday and talked of demand “falling short of industry expectations”.
Name registration data available to-date indicates a strong opening for a variety of new products/domains, and also shows that we are still very early in the adoption curve for new TLDs. We expect that the growth of almost all new TLDs will likely follow an “S curve”, as it historically has for newly launched TLDs, rather than a straight line.
He also reconfirmed that M+M plans to aggressively pursue its new integrated registrar business as a means to drive growth in its gTLDs, rather than simply relying on the channel.
Momentum Events has cancelled its planned new gTLD conference, which was due to take place in Amsterdam next month.
The Digital Strategy & DotOps Congress was designed primarily for potential dot-brand gTLD applicants — with free tickets on offer for eligible companies — but Momentum said there was not enough demand.
A Momentum rep tells me it was looking like fewer than 100 people were going to attend.
“[M]arket response to this event thus far has demonstrated that the use of TLDs by brands is still a developing area and at this time we are just a bit too ahead of the curve,” the company said in an email to participants. “As such and in consideration of your time, we decided to proceed with cancelling this event.”
The conference was to be held at the Crowne Plaza hotel in Amsterdam, Netherlands from September 18 to 19.
Momentum is tentatively thinking about rescheduling the show for the first quarter next year.
It’s not the first new gTLD conference to be cancelled due to the slow uptake of new gTLDs. The third .nxt conference was abandoned twice in 2012 due to lack of demand and delays in the ICANN process.
Unlike the .nxt situation, where some attendees said they did not get refunded for their event passes, Momentum tells me people who had already paid for tickets can be refunded.
They’ll also be offered access to other Momentum conferences — either the rescheduled spring conference or a more imminent brand-oriented show — as an alternative.
ICANN has warned internet users about a domain name scam that exploits the ICANN name and logo.
Not giving away much information, ICANN said in a statement:
It has been brought to ICANN’s attention that some online entities have attempted to sell fraudulent “certificates”, which they claim are required to protect generic top-level domain names. The perpetuators of this scam threaten registrants on the protection service with the objective of securing a fee from the registrant. The “certificates” look official and include an unauthorized use of the ICANN logo.
Please note that ICANN does not issue certificates to registrants and does not collect fees from registrants directly.
It’s not clear whether the scam is related to the “ICANN certificates” fraudsters sometimes demand as part of domain appraisal scams, which have been well-documented online.
The reference to a “protection service” and new gTLDs suggest this might be something new.
I asked ICANN for a sample of the scam in question yesterday but haven’t heard back yet.
UPDATE: The certificates look like this:
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Here’s a screen shot:
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Momentum Events is offering brands a free pass to its upcoming Digital Strategy & DotOps Congress in Amsterdam.
The deal is only open to companies that have not already applied for a new dot-brand gTLD. Each eligible company gets one free pass for the two-day event. Additional tickets start at $299.
For applicants and others the standard price is $599 per person. That’s about half the price of previous conferences in the series, which is now in its fifth incarnation.
Previous shows have taken place in New York and London.
Confirmed speakers for Amsterdam include executives from Philips, Goodyear, Coke and Google. From the domain world, Afilias, doMEn, Donuts and Dot Luxury are due to talk.
DI, which is a nominal media sponsor of the show, may also be on a panel.
The shows were previously called the Digital Strategy & New gTLD Congress, but Momentum has switched out “New gTLD”, which perhaps caused non-domain folks’ eyes to glaze, for “DotOps”.
No, I don’t know what that means either.
The conference will take place at the Crowne Plaza hotel in Amsterdam, Netherlands from September 18 to 19.