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CentralNic starts returning cash to shareholders as revenue grows

Kevin Murphy, May 15, 2023, 13:48:05 (UTC), Domain Registries

CentralNic has started paying a dividend and has announced another share buyback as it focuses less on aggressive M&A and more on organic growth.

The company, which makes about a quarter of its revenue from domains, said it will spend £4 million of its cash reserves buying back shares between now and August and will pay a £0.01 dividend a month from now.

The news came as CentralNic confirmed its top line grew by 24% in the first quarter, to $194.9 million, driven largely by its traffic arbitrage business, which it calls Online Marketing.

Its revenue from Online Presence — domains and such — was up 14% at $45.2 million, and its number of domain-years processed was up 2% at 12.4 million. The company sells both as registry, registrar and back-end.

Overall, adjusted EBITDA was up 15% at $21.3 million.

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