Latest news of the domain name industry

Recent Posts

.SE sells off $3.2 million registrar biz

Kevin Murphy, January 31, 2019, Domain Registries

Swedish ccTLD registry IIS has sold off its registrar business, .SE Direkt, to a local registrar for an undisclosed sum.

The buyer is Loopia, a web hosting company focused on the Swedish market. It will take over in a couple of weeks.

IIS said that starting February 12, lasting a few days, its customers’ domains will be transferred to Loopia. No disruption is expected.

.SE Direkt had 121,836 .se domains under management and 87,852 customers at the last count. Its 2018 revenue was expected to be around $3.2 million.

Loopia has around 225,000 customers. It does not appear to be ICANN-accredited, but you don’t need to be to sell ccTLD names.

It might actually be good news for departing .SE Direkt customers. Loopia sells .se domains for SEK 149 ($16.50), whereas .SE Direkt’s list price is SEK 270 ($29).

IIS said the sale was finalized following a review of competing bids following its October announcement that the unit was up for sale.

The .SE Direkt business has been on the decline for the best part of a decade, apparently deliberately. It was created as part of .se’s transition to a two-tier registry-registrar model in 2009.

IIS had expected to divest the business earlier, but customers did not jump ship as fast as expected.

Comment Tagged: , , , , ,

ICANN picks Seattle for public meeting

Kevin Murphy, January 30, 2019, Domain Policy

ICANN will hold one of its 2021 public meetings in Seattle, Washington.

The organization’s board of directors directed the CEO to start talks with the yet-unnamed venue at its meeting at the weekend.

The meeting, ICANN 72, will be the 2021 Annual General meeting and will be held from October 23 to 28.

Believe it or not, it will be the first time a public ICANN meeting has been held on the mainland United States since the LA meeting in 2014.

That’s quite a feat, given that ICANN’s definition of “North America” basically only has two countries in it.

1 Comment Tagged: , ,

ICANN approves two new TLDs, including THAT one

Kevin Murphy, January 30, 2019, Domain Registries

ICANN’s board of directors has given the nod to two more country-code TLDs.

The eight-year-old nation of South Sudan is finally getting its possibly controversial .ss, while Mauritania is getting the Arabic-script version of its name, موريتانيا. (.xn--mgbah1a3hjkrd), to complement its existing .mr ccTLD.

Both TLDs were approved by ICANN after going through the usual, secretive IANA process, at its board meeting at the weekend.

The recipient of موريتانيا. is the Université de Nouakchott Al Aasriya, while .ss is going to National Communication Authority, a governmental agency.

As previously noted, .ss has the potential to be controversial due to its Nazi associations, and the fact that Nazis are precisely the kind of people who have trouble finding TLDs that will allow them to register names.

But none of that is ICANN’s business. It simply checks to make sure the requester has the support of the local internet community and that the string is on the ISO 3166 list.

The Mauritanian IDN has already been added to the DNS root, while .ss has not.

Comment Tagged: , , , , , ,

MMX sees better profits than expected

Kevin Murphy, January 29, 2019, Domain Registries

Portfolio registry MMX saw 2018 financial results slightly ahead of expectations, the company told investors yesterday.

It now expects revenue to be over $15.5 million for the year, compared to $14.3 million in 2017. Operating EBITDA, its preferred profitability indicator, will be “marginally ahead of market expectations”.

It expects revenue from renewals — which MMX has been trumpeting as a key indicator of stability — to be $9.4 million, compared to $4.8 million in the prior year.

That’s mainly due to the $3.4 million contribution of recently acquired porn TLD specialist ICM Registry. Without ICM, renewal revenue was still up 20% though.

The company’s exposure to the Chinese market has also been reduced. It now contributes 36% of sales, compared to 50% in 2017.

Volatile one-off premium domain sales are also on the decrease in terms of revenue share — 15% in 2018 compared to 38% in 2017.

Its full audited results will be published later in the quarter.

Comment Tagged: , , ,

Pay up or sell up, ICANN tells failing new gTLD

Kevin Murphy, January 25, 2019, Domain Registries

ICANN has responded to a request for it to reduce the $25,000 annual fee it charges gTLD registries.

The answer is no.

That wholly unsurprising reply came in a letter from registry services director Russ Weinstein to John McCabe, CEO of failing new gTLD operator Who’s Who Registry.

McCabe, in November, had asked ICANN to reduce its fees for TLDs, such as its own .whoswho, that have zero levels of abuse. ICANN fees are the “single biggest item” in the company’s budget, he said.

His request coincided with ICANN commencing compliance proceedings against the company for failure to pay these fees

Weinstein wrote, in a letter (pdf) published today:

We sympathize with the financial challenges that some new gTLD registry operators may be facing in the early periods of these new businesses. New gTLD operators face a challenging task of building consumer awareness and this can and may take significant time and effort.

But he goes on to point out that the $25,000-a-year fee was known to all applicants before they applied, and had been subject to numerous rounds of public comment before the Applicant Guidebook was finalized.

Weinstein writes:

The AGB made clear that evaluation phase was to determine whether an applicant had the requisite technical, operation and financial capabilities to operate a registry, and was not a assessment nor an endorsement of a particular business plan.

It’s pretty clear that the .whoswho business plan has failed. It’s sold no more than a handful of non-defensive domains over the four years it has been available.

Weinstein concludes his letter by pointing out that all new gTLD registries are free to terminate their contracts for any reason, and that it’s perfectly permissible under ICANN rules to sell your contract to another registry.

ICANN told Who’s Who earlier this month that it has until February 10 to pay its overdue fees or risk having its contract terminated.

3 Comments Tagged: , , , , , ,