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CentralNic extends XYZ deal until 2032

Kevin Murphy, September 7, 2017, Domain Registries

CentralNic and XYZ.com have extended their registry services pact for the next fifteen years, according to CentralNic.

Announcing its first-half 2017 financial results today, CentralNic said the back-end contract has been extended until 2032.

It’s an unusually long duration for a registry services contract, which are usually much more likely to run about five years.

It even lasts 10 years beyond the expiration of XYZ.com’s own ICANN contracts (though renewal of these is a near-certainty).

The deal covers all .xyz domains, as well as all of the other TLDs in XYZ.com’s portfolio. That currently includes the likes of .rent, .storage and .college.

CentralNic said it “will receive a fixed fee based on the volume of .xyz registrations and subscriptions managed” under the new deal.

In a statement to the markets, CEO Ben Crawford said the relationship “has been updated to normalise the Company’s revenues and profits going forward.”

I believe the previous contract contained a per-domain component, which exposed CentralNic’s revenue to .xyz’s erratic pricing-influenced growth trajectory.

.xyz’s zone file has shrunk by a whopping four million domains since this time last year, causing it to lose the crown of highest-volume new gTLD, due to it offering free or almost free domains that expired without renewing after a year.

However, CentralNic disclosed that the proportion of its own wholesale transaction volumes that were renewals (rather than adds and transfers, I assume) was 18% in the first half, up from 2% in the same 2016 period.

For the six months ended June 30, the company had overall revenue of £10.6 million ($13.9 million), up 18.5% year over year.

Its net loss after tax was £619,000 ($810,000), down from £1.3 million. At the EBITDA level, profit was £1.4 million ($1.8 million) compared to $900,000 in H1 2016.

While I still stubbornly think of CentralNic as primarily a registry play, in fact the company now gets about three quarters of its revenue today from its retail registrar division, which contributed just shy of £8 million to the total in H1.

Instra, the Australian registrar it acquired at the end of 2015, contributed £5.83 million.

The wholesale division, registry back-end services — contributed £1.82 million to revenue and £450,000 to EBITDA in the half.

That’s despite CentralNic being the back-end for six of the top 20 new gTLDs by volume — .website, .space, .tech, .site, .online, and .xyz

If we tally up the number of domains in only those six TLDs, we get to about 4.2 million, per their zone files.

The company’s third reporting unit, Enterprise, contributed £800,000 ($1 million) in the half, of which £360,000 ($471,000) came from premium domain sales.

CentralNic to swell with $24m Instra buy

Kevin Murphy, December 8, 2015, Domain Registrars

CentralNic is set to grow revenue by almost three quarters by acquiring Australian registrar Instra for $23.7 million.

The acquisition is for AUD 33 million, AUD 30 million of which will be in cash.

CentralNic plans to raise £10 million ($15 million) with a share placement to help fund the deal.

“This acquisition will grow our current revenues by 70% and extend our retail capabilities to serve customers in the fast growing emerging markets, globally,” CEO Ben Crawford said in a statement to the markets.

Instra had revenue of AUD 14.8 million ($10.7 million) in its fiscal 2015, and was profitable.

CentralNic’s revenue for the first half of this year was £4.4 million ($6.8 million).

The deal makes CentralNic, which started life as a registry, a much larger player in the registrar market.

It acquired Internet.bs for $7.5 million a couple of years ago, which brought in $2.8 million of revenue in the first half of this year.

Instra offers 150 ccTLDs and all the gTLDs, according to CentralNic.

OpenRegistry gets €2m financing

Kevin Murphy, September 24, 2013, Domain Registries

New gTLD registry services provider OpenRegistry has secured €2 million ($2.7 million) in financing, the company announced yesterday.

The amount will be “spread over the coming year” and comes from, among other existing investors, Australian registrar Instra.

The Benelux-based company will also see investment from the Luxembourgish government under a ‘Young Innovative Enterprises’ scheme.

OpenRegistry is to provide back-end services for up to 19 new gTLDs and currently manages the registry for .sx, the recently launch ccTLD for Sint Maarten.