Portugal reports lockdown boom continued through the summer

While the coronavirus pandemic is well past its first peak in western Europe, the lingering effects of government restrictions is a gift that continues to give for at least one ccTLD.

Associação DNS.PT today reported that total registrations of .pt names in August (6,843) were 35% higher than during the same period last year, and that July’s number was 17.28% higher than the year-ago month.

The registry added that the trend seems to be continuing into September.

The company said that registrations were mostly driven by “catering and domestic service companies, gyms and social solidarity projects” getting online for the first time due to pandemic restrictions.

Oddly, the new numbers appear to have been presented today at an in-person, though socially distanced, lecture by DNS.PT and government officials.

No ICANN meetings until 2021

Community members itching to be able to suck up to (or berate) ICANN staffers in person rather than over the phone or videoconferencing will have to wait a little longer.

The Org announced today that all face-to-face meetings have been cancelled until the end of the year due to the ongoing coronavirus pandemic.

It doesn’t affect any of the big public meetings — the AGM in October was relocated from Hamburg to Zoom a few months ago — but regular business travel and intersessional meetings are hit.

It also means ICANN staffers will continue to work from home until January at the earliest, ICANN said.

The health and safety of our community and staff are always our top concern, and we believe it is not prudent to travel or encourage gatherings until at least the end of 2020. The ongoing and long-term health impact of COVID-19 on our community and staff is a risk that we are not willing to take. In addition, the travel landscape has not yet stabilized, which makes any travel complicated and risky.

Call me a pessimist, but I’d be very surprised if this is the last time the travel ban is extended.

Radix premium renewals approach $1 million

New gTLD registry Radix made almost a million bucks in the first half of the year from renewal fees on its premium domains.

That’s one data point that jumps out from Radix’s latest premium sales report, released last night.

The company said that it made $1.96 million at the top line from premiums in the period, up 19% on the second half of 2019.

It added that $996,771 of that was from renewals, up from $903,687 in H2 2019.

Radix is one of the registries that charges a premium fee every year over the lifetime of the registration, a practice controversial among domain investors.

Still, it appears there is demand (or, at least, acceptance) among end users. Radix said it saw a 41% sequential increase in the number of premium sales in H1.

.tech, .online and .store were the biggest sellers, with the vast majority of sold names clustering in the $250 to $2,500 range.

The renewal rate after the first year was 63%, growing to 72% at the second renewal and a very respectable 78% thereafter.

Radix said it saw .store premium sales grow by more than fivefold during the half, which it attributed to the coronavirus pandemic:

While premium registrations and revenue have grown steadily for five quarters since Q2 2019, the 2020 pandemic has led to significant demand in eCommerce and have urged businesses from all verticals to build a strong web presence.

This has led to a surge in the adoption of premium domain names on meaningful extensions that are most suited for these businesses such as .STORE. Premium registrations for .STORE in Q2 2020 was up by 5.5X compared to Q2 2019.

More stats can be found here.

ICANN will spend $51,000 on your broadband

ICANN has set aside up to $51,000 to reimburse community members for their broadband costs during its next public meeting.

Under the newly agreed Pandemic Internet Access Reimbursement Program Pilot, participants in ICANN 69 will get a maximum of $60 each to cover the costs of increased bandwidth or data caps during the month of October.

The pilot is limited to only those who already have their travel funded from the ICANN budget, such as members of important committees and the Fellowship program.

They’ll have to provide receipts from a legit ISP showing how much they paid to participate in the meeting, which will be the third in a row to be carried out via Zoom.

Anyone who wants the reimbursement will have to apply before October 2, and payouts will be made in November.

ICANN will also publish the names of those who receive the payments, as it does with travel reimbursements, which should discourage abuse.

As I’ve previously noted, ICANN is saving millions this year by eschewing in-person meetings, and $51,000 really is a drop in that ocean.

ICANN 69 runs from October 17 to October 22. It had originally been scheduled to run in Hamburg.

Verisign measures the industry’s lockdown bump

The domain name industry added a net 400,000 extra domain registrations in the second quarter, when compared to the same quarter a year ago.

That’s according to Verisign’s latest Domain Name Industry Brief, which is arguably the most comprehensive data on how domain names fared while much of the developed world was subject to coronavirus lockdown.

The second quarter of 2020 ended with 370.1 million regs across all TLDs, up by 3.3 million sequentially and 15.3 million year over year, Verisign said.

That compares to a Q2 2019 increase of 2.9 million domains.

ccTLDs appear — at least at first glance — to have performed particularly strongly, adding a net 2.6 million regs to end June at 160 million. That compared to Q2 2019 net adds of 1.9 million.

Unfortunately, those numbers include the free ccTLD .tk, which never deletes a domain, and that space saw 2.4 million adds in the quarter, dramatically damaging the optics for ccTLDs as a whole.

New gTLDs as a whole fared poorly, losing a net 600,000 names during the period, to end Q2 at 31.6 million.

Most of that dip is attributable to the fast-selling new gTLD .icu, which lost 400,000 domains during the quarter due to the effects of its first junk drop.

Verisign’s own .com was up by at 1.4 million names to 148.7 million at the end of June; .net was flat at 13.4 million.

The company sold 1.1 million more domains in Q2 2020 than it did in Q2 2019.

You can read the Q2 DNIB here (pdf).

ICANN might pay for your lockdown broadband

ICANN is to seriously consider requests that community volunteers should have their broadband costs subsidized out of the ICANN budget.

On Thursday, its board of directors will meet to discuss what it’s calling the “ICANN Pandemic Internet Access Reimbursement Program Pilot”.

No additional information is currently available, but the name of the proposed pilot is pretty descriptive.

The agenda item follows calls from some community members for ICANN to help out with the costs of broadband (and potentially hotel rooms) for those who have incurred out-of-pocket expenses to participate in ICANN’s remote Zoom meetings.

ICANN typically covers the travel and accommodation for certain key policy-making volunteers attending its thrice-yearly public meetings and occasional intersessional face-to-face gatherings.

With coronavirus confining most of these people to their home offices for the last several months, and with all official ICANN meetings going virtual, ICANN could save as much as $8 million this calendar year

Paying the broadband costs of a handful of community members would likely amount to a mere drop in that ocean.

However, while the details of the proposed pilot program are not yet known, one could imagine how galling it would be to many if ICANN opened its piggy-bank to North American lawyers on six-figure salaries, rather than only to volunteers from the broadband-poor developing world.

As a reminder, ICANN’s budget primarily comes from the “tax” registrants pay whenever they register a gTLD domain name.

Still, we shouldn’t prejudge these things. Perhaps the policy will be sensible.

ICANN introduced a similar pilot reimbursement program for community members with childcare needs last year, largely without controversy. Due to the absence of face-to-face meetings this year, this cash-for-kids scheme will run until ICANN 71 in June next year.

No lockdown bump for .eu as domain base shrinks in Q2

The European Union ccTLD .eu did not see an overall benefit from the pandemic lockdowns that affected many of its member states in the second quarter.

Registry operator EURid this week said that its total domains under management for .eu was 3,606,143 at the end of June, down by 16,907 from 3,623,050 at the end of March.

The company blamed Brexit for the decline, as Brits will no longer be eligible for .eu domains after the political transition period expires at the end of the year and many are therefore being allowed to expire.

This has been EURid’s story for many quarters, with the exception of a discount-related Portuguese aberration in Q1.

The number of regs from the UK dropped by 16.6% year-over-year and 5.1% quarter-over-quarter, to wind up at 135,355.

But .eu did not see the lockdown bump experienced by many other registries and registrars during the quarter either.

New regs in Q2 were at 163,277, compared to 190,011 in Q1 and 164,906 in Q2 2019. It sold fewer domains, even as its peers reported significant increases in sales.

I expect this is fairly easily explained.

Anecdotally, much of the pandemic-related boost the industry has experienced has been due to bricks-and-mortar microbusinesses such as mom-n-pop retailers, bars and restaurants selling online for the first time and needing domain names to make the switch.

These types of registrants, serving a small local area, don’t need a TLD reflecting their membership of a vast trading union, and are probably better served by their national ccTLD or a descriptive generic, so .eu got overlooked.

When it comes to the lockdown bump, it appears .eu was the exception to the rule.

The two biggest registrars knock it out of the park in Q2

GoDaddy and Tucows, the industry’s two largest registrars, both last week posted very strong second-quarter results due to the beneficial impact of the coronavirus lockdown.

Market-leader GoDaddy in particular seems to have knocked it out of the park, adding a ridiculous 400,000 net new customers during the April-June period, the strongest quarterly performance in the company’s 20-year history.

The company reported domains revenue of $369.6 million, up 10.5% on the year-ago quarter, its strongest-performing segment.

Tucows, meanwhile, reported domains revenue essentially flat at $60 million, but pointed to registration growth as an indicator of its showing.

Tucows CEO Eliot Noss said in prerecorded remarks that new registrations from its reseller channel were up 41% in the quarter, with overall wholesale registrations up 7% to 4.3 million.

In the retail channel, domains under management was up 9% year-over-year to 400,000, with new registrations up more than 20%.

The CEOs of both companies were unambiguous that the coronavirus pandemic could take credit for their results. Noss said:

As expected, in Q2 we saw the full effects of the pandemic that we began to experience toward the end of Q1, with businesses globally moving quickly online, and displaced workers turning to entrepreneurship as the next stage in their career paths. A large proportion of that new registration activity was those resellers who focus on helping small and micro-sized businesses and start-ups establish a web presence for the first time.

GoDaddy CEO Aman Bhutani characterized the virus as a catalyst for businesses stubbornly remaining offline to finally get a web presence, telling analysts:

COVID-19 has pushed a number of people past the point of inertia where they were not adopting digital… because people have no choice but to go digital to support their businesses, we’re seeing people experimenting with ideas. We’re seeing people come online, even though they had hesitated to do it in the past.

Overall, GoDaddy reported revenue up 9.4% at $806.4 million. Its net loss was $673.2 million, due mostly to a one-time tax-related payment.

Tucows overall revenue was $82.1 million, down from $84.1 million, largely due to the drag factor of its recently restructured Ting Mobile business. Net income was $157,000, down from $2.6 million.

Domain industry had best April ever under lockdown

The domain industry had its best April ever in terms of new domains sold in gTLDs, according to my tally, despite much of the Western world spending the month in coronavirus lockdown.

There were a total of 5,291,077 domain adds in April, across all 1,253 gTLDs currently filing transaction reports with ICANN.

That’s up almost 100,000 on the 5,191,880 adds in April 2019 and the best April since the first new gTLDs started coming into circulation in 2013.

[table id=60 /]

While a measly 100k jump may be less impressive than expected based on the enthusiastic descriptions of the lockdown bump coming from registries and registrars over the last few months, it makes a bit more sense when you factor out Chinese volume success story .icu.

.icu, currently the largest of the new gTLDs, was having a bit of a growth spurt at the start of 2019, and added 267,287 domains in April last year. That was down to 56,714 this April. The TLD has been declining for the last few months.

Looking at the TLDs that seem most obviously related to lockdown, the standout is .bar, which added 26,175 names this April, compared to just 151 a year ago.

It’s been well-reported that many restaurants and bars affected by coronavirus switched to online ordering and home delivery, and .bar appears to be a strong beneficiary of this trend.

.bar currently has more than 100,000 names in its zone file, roughly double its pre-lockdown level.

.com fared well, adding 3,382,029 domains this April, compared to 3,360,238 in the year-ago period.

But .xyz did better, relatively, adding 256,271 names, compared to 200,003 a year earlier.

Also noteworthy was .buzz, which has been performing very strongly over the last 12 months. It added 60,808 names this April, compared to just a few hundred.

This table shows the 20 gTLDs with the most adds in April 2020, with their April 2019 numbers for comparison.

[table id=61 /]

No .sex please, we’re infected!

MMX saw poorer-than-expected sales of porn-related defensive registrations in the first half of the year, the only blip in what was otherwise a strong period for the company.

The registry updated the market today to say that its domain name base grew by 31% year over year during the half, ending June with 2.38 million names under management. It only grew by 19% in the same period last year.

Billings for H1 were up 7% at $7.9 million, MMX said.

But because the mix shifted away from one-off brokered sales, which are registered on the earnings report as a lump sum, and towards regular automated registrations, which are recognized over the lifetime of the reg, MMX expects to report revenue 5% down on last year.

While that’s all fair enough, the company said that it didn’t sell as many defensive blocks in .xxx, .sex, .porn and .adult as it had expected, which it blamed on coronavirus:

Management also notes that expected H1 channel sales from the Company’s brand protection activity were held back due to the impact of COVID-19, but anticipates those brand protection initiatives that were delayed in Q2 will resume in H2.

It’s a reference to the AdultBlock and AdultBlock Plus services launched last year, which enable trademark owners to block (and not use) their marks in all four adult TLDs for about $350 to $800 a year.