CentralNic Group Plc (LON:CNIC) has scaled its wholesale internet domain business at an unprecedented pace as its clients have gained market share, chairman Mike Turner highlighted in Wednesday’s interim results.
For the six months to June 30, the group reports some £45.08mln of billings - the gross amount charged for domains before revenue sharing - which represents a huge 468% increase compared to the same period of 2015.
CentralNic’s revenue amounted to £8.9mln, double the £4.44mln in the first half of last year. Gross profit was up 19% to £2.28mln, while it reported earnings (adjusted EBITDA) of £1.3mln.
The apparent step change in the business was in-part due to the acquisition of Instra Group in January, though it was also noted that premium domain sales in 2015 did not re-occur in the first half of 2016. Margins reduced to 26% from 43% last year.
It reported adjusted pre-tax profits of £948,000, though after tax the group made a £1.3mln loss.
CentralNic ended the first half with £9.25mln of cash and equivalents, and £6.04mln of net cash after borrowings.
"During 2016 to date, CentralNic has advanced its growth strategy through the acquisition of the Instra Group. Together with Internet.BS, the group is now able to address demand from a number of retail segments across geographic markets,” Turner said.
“This reflects our strategy to enhance the quality and visibility of the group's earnings.”
He added: “Trading in our core businesses overall has remained in line with the board's expectations since the half year.
“Our team is in discussions with trade buyers for premium domain name sales, and anticipating that these sales will proceed, the Board is confident of achieving the market expectations for the year."