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MMX says .vip renewals running at 75%

MMX has revealed that its renewal rate for first-month .vip registrations in China were over 75%.

The portfolio gTLD registry, also known as Minds + Machines, said that 317,000 domains that were registered during .vip’s first month of availability have now been renewed.

The news follows a June announcement that the renewal rate would be over 70%.

The large majority of .vip names registered are registered via Chinese registrars, where prices can be around the $3 to $4 mark.

MMX CEO Toby Hall said in a statement that the company now plans to release some of its reserved “premium” .vip names.

He added that the company is confident that its recurring revenue from renewals will soon be high enough to cover its fixed overhead costs, one of its key performance benchmarks.

MMX says .vip renewals to be at 70%+

MMX believes the biggest money-spinner in its new gTLD portfolio, .vip, will see first-year renewals in excess of 70%.

The company said this morning that it is projecting renewals towards the top end of industry norms based on manual renewals to date.

.vip was a bit of a hit in China, topping a quarter-million domains in its first month of general availability a year ago. It peaked at around 750,000 domains a month ago.

MMX said in a statement:

To date, actual deletions for the first 31 days of registrations for .vip from China are currently less than 1%, with manually confirmed renewals for the same period already at over 60%, with the remainder being placed on auto-renew by registrars on behalf of their customers.

Whilst not all of those placed on auto-renew will be renewed, MMX expects the overall renewal rate for the first month of .vip registrations, which will be published in late July, to place .vip in-line with the best-in-class renewal rates of leading western facing top-level domains (i.e. c. 70% and above).

While MMX has made much of the fact that it has not sold .vip names for almost nothing, unlike some competitors, they’re still pretty cheap in China.

.vip names sell for the CNY equivalent of $3 to $4 at the major Chinese registrars. GoDaddy prices them at $20.

CEO Toby Hall said that there had been some volume-based discounts available to registrars, but “nothing which took the pricing below our general availability pricing”.

Its actual renewal rate will become clear at the end of July, MMX said.

MMX billings double even as some volumes slide

Kevin Murphy, January 25, 2017, Domain Registries

MMX has reported a 100% increase in billings for 2016, despite its number of domains under management dropping in some TLDs.

The company, until recently known as Minds + Machines, said billing were $15.8 million in the year to December 31, compared to $7.9 million for in 2015.

Billings is an up-front measure of sales growth that does not take into account the way domain revenue is recognized over the life of the registration.

The company said, in a trading update to the London markets today, that billings and domains under management do not necessarily correlate. The former can be up even if the latter is down:

For example, in 2016 .work generated $392,000 off 81,000 registrations compared to $206,000 off 102,000 registrations in 2015 reflecting the use of a promotional initiative to drive registrations that year.

MMX also disclosed that China now accounts for more than half of its billings: 59%, compared to 24% for the US and 17% for Europe.

That’s largely based on its launch of .vip, which launched last May and has half a million names mainly because of the resonance of the string in China.

The company said it intends to imitate its focus on .vip in 2016 by only launching two TLDs — .boston and one other — in 2017.

MMX’s formal, audited 2016 financial results will be published in April.

.xyz, .club and .vip get the nod to sell in China

Kevin Murphy, December 5, 2016, Domain Registries

The Chinese government has granted licenses to operate in the country to its first tranche of new gTLDs — .vip, .club and .xyz.

The agreements mean that Chinese registrars will be able to give their Chinese customers the ability to actually use their domains for web sites.

It also means the companies will be obliged to censor domains the government does not like, but only those domains registered via Chinese registrars.

The Ministry of Industry and Information Technology announced the licenses, given to the Chinese subsidiaries of Minds + Machines, .CLUB Domains and XYZ.com respectively, today.

M+M CEO Toby Hall told DI that it’s “a great moment of support for Chinese registrars”, giving them a “very clear signal about which TLDs they can focus on”.

XYZ.com said in a blog post that some of its Chinese registrars (its biggest channel) are planning on offering discounts to celebrate the approval.

It’s always been possible for Chinese people to register new gTLD domains via Chinese registrars — it’s estimated that 42% of the 27 million new gTLD domains in existence today are Chinese-owned.

However, Chinese citizens need a government license if they want to launch a web site, and the government only issues licenses for domains in approved TLDs.

In addition to .cn and China-based gTLDs, which were the first to be given the nod, Verisign was approved earlier this year for .com.

Hall said that while .vip has been popular with Chinese domainers, the MIIT license means it can start to tap the small business market there too.

Obtaining the license means that the three registries, which are all based in the US or Europe, will have to comply with Chinese regulations when it comes to Chinese customers.

That basically means the Chinese government gets to censor pretty much anything it doesn’t like, up to and including sites that “spread rumors”.

Hall said that there’s no chance of this censorship bleeding out to affect non-Chinese customers.

M+M, along with XYZ and .CLUB, are using Chinese registry gateway ZDNS to act as a proxy between their own back-ends (Nominet for .vip, Neustar for .club and CentralNic for .xyz) and Chinese registrars.

“All of our Chinese web sites go through ZDNS, so only web sites going through ZDNS would be affected,” Hall said, referring to the censorship rules.

Hall added that he was “not aware” of there being a blocklist of politically sensitive strings that Chinese customers are not allowed to register.

Chinese investor pumps $7 million into M+M as .vip pushes firm into profit

Kevin Murphy, September 20, 2016, Domain Registries

Minds + Machines made a profit, kinda, in the first half of the year, due to the popularity of .vip in China.

The company today announced a loss of $1.9 million for the six months to June 30, compared to a $1.6 million loss in the comparable 2015 period, on revenue that was up 115% at $7.4 million.

But factoring out discontinued operations — M+M started to close its registrar and registry back-end businesses during the half — it actually managed to sneak a profit of $56,000.

Its revenue was also unaffected by one-time gains from gTLD auction losses, something which had pumped up its top line regularly for the last few years.

Chairman Guy Elliot said in a statement to the markets that M+M “has successfully been navigated out of troubled waters”.

The turnaround is due in no small part to the success of .vip, which racked up over 400,000 registrations in its first month (back in May), the large majority of which were sold to Chinese investors.

The company said that $5.5 million of the $8 million in H1 billings were made in the first 21 days of .vip’s availability.

Having started 2016 with no sales in Asia whatsoever, it expects 45% of its revenue to come from China by the end of the year.

As a direct consequence of .vip’s sales, M+M has received a £5.5 million ($7.2 million) investment from Goldstream Capital Master Fund I, a Cayman Islands shell company owned by Chinese private equity firm Hony Capital.

Hony, which manages $10 billion in assets, is perhaps best known for owning the pizza restaurant chain Pizza Express, which it acquired for $1.54 billion in 2014.

According to its web site, Hony’s own investors include three large Chinese state-owned investment vehicles.

The investment deal includes clauses preventing Hony from trying to get a director on M+M’s board and/or launching a hostile takeover bid.

It will own 7.17% of M+M after buying 50 million shares at £0.13 each, assuming M+M’s simultaneously announced £13 million ($17 million) share buyback is fully subscribed.

M+M opened a subsidiary in China (a Wholly-Owned Foreign Enterprise) during the half, in order to better serve the Chinese market and comply with Chinese government regulations.

It simultaneously laid off 44% of its staff in the US — engineers no longer needed due to the shift into an almost entirely marketing-focused business — and expects to end the year with only 13 employees there.