Minds + Machines made $4.4 million losing three recent new gTLD auctions, according to a company press release.
It’s withdrawn bids for .latino, .school and a third string it said it could not disclose due to the rules of the private auction.
M+M now says it has $45 million cash on hand.
So far, the company has withdrawn 31 new gTLD applications, almost half of its original 70. Not all of those were lost at auction.
It has 17 contested applications left and expects those contention sets to be resolved one way or the other by the end of June 2015.
A sport-related new gTLD is going to an official sporting body.
FIBA, the Fédération Internationale de Basketball, won the right to .basketball after an auction shoot-out with Donuts and Famous Four Media.
While FIBA is the official world organizing body for the sport, there’s no plan to place strict restrictions on the gTLD — the application states that .basketball will be open to all.
FIBA had filed Community Objections to its two rival bids, arguing that they would allow gambling web sites that would harm the reputation of the sport, but the objection panels rejected both complaints in January this year.
FIBA’s bid is supported by Minds + Machines, its registry back-end provider.
Continuing its strategy of getting well-known anchor tenants involved in its new gTLD launches, Minds + Machines has recruited the Brewers Association to back its just-launched .beer.
The BA represents over 2,300 independent breweries in the US, according to its web site.
.beer hit general availability yesterday. Due to delays with ICANN’s zone file publishing system this morning I can’t yet bring you the first-day figures for the TLD.
The launch was timed to coincide with the Great American Beer Festival in Denver, Colorado.
Two weeks ago, M+M launched .country with backing from music legend Dolly Parton, who claimed dolly.country, dollyparton.country, queenof.country, dollywood.country and 9to5.country.
If nothing else, the endorsement reminded non-Americans that .country is supposed to relate to music, not geography.
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.
Minds + Machines’ first day of general availability for its first six wholly owned new gTLDs has produced some very disappointing numbers.
The company managed to net just 1,694 new domains across .country, .cooking, .vodka, .rodeo, .horse and .fishing combined yesterday, according to this morning’s zone files.
It has fewer than 2,000 names across all six zones.
Meanwhile, .vegas, which also went to GA yesterday, managed to net 2,933 new domains, ending the day at 3,903.
Here’s a table of M+M’s performance over its first seven or eight hours of GA, which began at 1600 UTC yesterday.
|Net Gain||Total Domains|
Assuming the zone files are fresh, it’s a poor first day for the company whichever way you look at it, especially given that M+M has been accepting pre-registrations in its TLDs since November 2013.
As well as being vertically integrated, M+M has about 80 third-party registrars on board to sell its names, including the largest.
Afilias’ .organic, which also went to GA yesterday, shows just one new registration today.
However, this can be attributed to the fact that registrants need to submit credentials for manual verification before their new domains are allowed to go live in the zone file.