All the one-character .sk domains to be auctioned

SK-NIC, part of Team Internet, says it plans to auction off all 36 single-character .sk domains over the coming months.

The auction plans also include releasing all the 200-odd two-letter domains that match existing ccTLDs, as well as .com.sk and .net.sk, which have all been registry-reserved to date.

The registry said it plans to hold auctions every two months starting on the 15th and running for seven days, starting in November.

There will be a trademark priority phase first, running from October 1 to October 14, in which trademark owners can apply for their matching domain for €300. If successful, the domain will cost them €3,000 ($3,348) or more if a contested mark has to be auctioned.

Opening bids for the regular auctions will start at €1,000 for two-char names, €1,500 for the 26 one-letter domains, and €2,000 for everything else, SK-NIC says.

The domains to be sold — I count 277 — are listed here (pdf). They’re all either one-character or matches for existing TLDs, but sk.sk is not on the list.

.sk is of course the ccTLD for Slovakia, but it’s owned from the UK following CentralNic’s acquisition of SK-NIC and has no local presence requirements. There are over 471,000 registered domains today, according to the registry.

Four more dot-brands switch back-ends

Four dot-brand gTLDs have recently changed their back-end providers, according to the latest records, three moving away from Verisign.

US insurance company American Family Insurance has moved its .americanfamily and .amfam from Verisign to GoDaddy, as has AARP, a US interest group representing retired people, with .aarp.

Aquarelle.com Group, a French flower delivery company, has meanwhile switched from French ccTLD operator Afnic to London-based CentralNic (which is still Team Internet’s registry brand).

The AmFam moves are notable because while Verisign has for some time been getting out of the dot-brand back-end business, most of its clients have been migrating to Identity Digital.

I count seven gTLDs making the Verisign-GoDaddy switch, compared to 60 going Verisign-Identity Digital over the last couple years. Verisign is now down to a few dozen dot-brands.

The Aquarelle.com move is notable because it’s rare for a dot-brand to use a back-end in a different time zone that predominantly uses a different language, but Team Internet does have a footprint in France and other Francophone countries so it’s perhaps not wholly weird.

Three of the dot-brands are not heavily used — .aarp has three resolving domains that redirect to aarp.org, while .amfam has about 10 names in its zone that do not publicly resolve and .americanfamily has none.

You might infer from the name “Aquarelle.com” that the company is not a big believer in the dot-brand concept, but you’d be surprisingly wrong — .aquarelle has more than 50 domains that resolve to web sites without redirecting to traditional TLDs.

Team Internet spends $41 million on content farm

Team Internet is back in acquisition mode, saying this morning it has picked up an Israeli content farm business for $41.8 million.

It’s bought Shinez IO, based in Tel Aviv and Denver, for the initial sum plus a potential extra $12.3 million if the company meets certain financial targets over the next two years, the company said.

Shinez operates a network of lightweight blogs covering areas such as food and fashion, which are marketed via social media and monetized via multiple ad networks.

It’s a lucrative business — Team Internet says Shinez had revenue of $111 million, $17.2 million in net revenue, and $10.4 million of EBITDA in 2023.

The acquisition edges Team Internet, formerly CentralNic, ever closer to becoming a billion-dollar company. It now expects revenue for 2023 to work out at $948 million.

The deal also seems to mean reduced exposure to Google as the company’s number one ad revenue source. Team Internet said “this acquisition would more than double the Online Marketing segment’s revenue generated independently of our Tier 1 channel partner”.

Team Internet says revenue beat estimates

Team Internet gave a preview of its 2023 earnings report this morning, saying that revenue grew faster than its own targets and analysts’ estimates.

The company, formerly CentraNic, expects to post revenue around $835 million, up 15% on 2022, and profit up 12% at $96 million for the year.

The firm’s Online Presence segment, which includes the domains business, had revenue up 16% at $179 million, while the far larger Online Marketing segment saw revenue up 14% at $656 million.

Team Internet will report its full results on March 18.

CentralNic rebrands as Team Internet

Another well-known domain industry firm has rebranded itself around a forgettable, search-resistant company name.

CentralNic is now Team Internet, though it will continue to use “CentralNic” in its domains business.

The company has changed its primary domain from centralnic.com to teaminternet.com (a redirect is already in place) and its AIM ticker symbol from CNIC to TIG.

The brand comes from Team Internet the parking company, which CentralNic acquired for $48 million in 2019.

The change makes sense — CentralNic doesn’t even make a quarter of its revenue from domains any more. Today, most of its money comes from social media marketing arbitrage and domain monetization.

Even if it were still laser-focused on domains, the registrar side of the business is bigger and “Nic” doesn’t make much sense there.

The company started off selling third-level domains in pseudo-gTLDs such as uk.com and gb.com, before enthusiastically embracing new gTLDs as a back-end provider and subsequently getting into the registrar game.

As its 10-year IPO anniversary approaches this month CEO Michael Riedl observed in a press release that the company has grown from a $4 million annual business in 2013 to a $728 million business last year.

Also of note, Gavin Brown, who was with the company since pretty much the start and held various C-level positions on the technical side of the house over the years, left the company last week to join ICANN.

CentralNic chief calls on industry to tackle climate change

CentralNic CEO Michael Riedl is calling on his counterparts at other large domain name registries and registrars to meet up to coordinate the industry’s response to climate change.

During a broad keynote at the London Domain Summit this morning, Riedl said that each domain company is too small to make an impact on the industry’s carbon footprint individually, and that coordination is needed.

He said the industry’s carbon footprint is currently “relatively reasonable” but said “we need to get it down to zero… together I’m pretty sure we can make an impact”.

Speaking to DI shortly after his speech, Riedl said he will soon invite industry leaders to a climate change “summit” in Hamburg, Germany, to coincide with ICANN’s 78th public meeting.

He said the domain industry needs to coordinate and standardize its approach to emissions, following the leads of other industries such as automotive.

He said he hoped he could get the CEOs of the big domain companies — he named Verisign and GoDaddy, who rarely send their CEOs to ICANN meetings — to show up.

Planning for the meeting is in the very early stages and Riedl said he has not spoken publicly about the initiative until today’s speech.

CentralNic starts returning cash to shareholders as revenue grows

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.

CentralNic expects revenue up 24% in Q1

CentralNic has disclosed its earnings expectations for the first quarter, and revealed it has diversified its pool of advertising partners.

The company expects revenue for the three months to March 31 to come it up 24% at $194.9 million, with adjusted EBITDA up 15% at $21.3 million. Excluding acquisitions, year-on-year organic growth for the trailing twelve months will be about 45%.

CentralNic started off as a domain registry, acquired its way into the registrar space, and nowadays makes most of its money from traffic arbitrage — buying Facebook ads, routing visitors through intermediary web sites to advertisers.

Mostly of the money it makes from advertising comes from Google’s ad network, but the company said today it has also signed up to Microsoft’s rival Bing platform, which reduces its exposure to a single partner.

CentralNic will report its full earnings May 15.

CentralNic reports strong 2022

CentralNic grew faster than analysts’ expectations last year, the company said today.

The company expects to report EBITDA of “at least” $177 million, up 33%, on revenue up 77% at about $728 million, for 2022.

Factoring out acquisitions and currency fluctuations, organic growth is expected to be around 60%.

The growth has been driven by its domain monetization business, which CentralNic has been building through acquisitions over the last few years.

The company will report its results proper on February 27.

CentralNic buys a bunch of web sites for $5.2 million

CentralNic said yesterday has splashed out $5.2 million on what it calls “a portfolio of revenue generating niche websites”.

The announcement doesn’t specify any of the “multiple” sellers or the nature of the sites, other that to say it will add $1.2 million to the top line and $1.4 million of EBITDA in 2023.

The company was already responsible for monetizing some of the sites it has bought.

CentralNic hinted that it might be slowing down its long-running acquisition spree following the departure of 13-year veteran CEO Ben Crawford last week.

The company said “it is intended that in the future, the emphasis of cashflow generated will be a more balanced approach of returns to shareholders, deleverage and complementary bolt-on acquisitions.”

The newly announced deal was presumably in the advanced stages of closure at the time of Crawford’s departure.