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.io sells $40 million of domains after massive uptick

Kevin Murphy, September 30, 2024, 07:22:18 (UTC), Domain Registries

.io is now a $40-million-a-year domain, after a few years of impressive growth, judging by the registry’s latest financial reports.

UK-based Internet Computer Bureau, a subsidiary of Identity Digital, recently reported turnover of £29.6 million ($39.6 million) for 2023, up 13.9% on the £26.1 million it reported in 2022.

While that’s respectable growth, it pales compared to 2022 (which I don’t think was reported at the time), when turnover was up a whopping 59%.

Identity Digital does not reveal .io’s registration numbers, but with turnover of over $39 million and retail renewal prices bottoming out at around $39 a year, it seems quite possible that the TLD’s domains under management has reached seven digits.

When Afilias paid $70 million for ICB in 2017, it had turnover of $7 million and domains were reported at 270,000.

ICB’s gross margins are terrible — one can only assume its registry services deal with Identity Digital is rather generous to its parent — at 4.4%, with £28 million being paid out as cost of sales.

With another £3 million of unelaborated “administrative expenses”, ICB reported a 2023 net loss of £404,000 compared to a 2022 profit of £1.7 million. It paid £17,660 in UK tax, down from £277,703. It had just $69,000 cash on hand at the end of the year.

While ICB also runs .ac (Ascension Island) and .sh (Saint Helena, Ascension and Tristan da Cunha), it’s only .io that has seen broad uptake among the global domain-registering public. Tech firms like it because I/O means “input/output”.

.io is the ccTLD for the contested British Indian Ocean Territory, also known as the Chagos Archipelago, which is administered from the UK and used almost exclusively to house a strategically important US military base.

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