Proactive Investors - Run By Investors For Investors

CentralNic hails strong year of revenue growth

CentralNic is now ranked fifth among the world's registry providers, with 104 exclusive registry contracts.
Top level domains
"Significant growth was delivered in the Wholesale and Retail divisions, which contributed to an increase in recurring revenues and an improvement in the quality of the group's earnings," said Mike Turner, the chairman of CentralNic

Internet domains firm CentralNic Group PLC (LON:CNIC) saw significant growth in its wholesale and retail divisions in 2017.

Revenues for the group as a whole rose by 10% to £24.35mln from £22.13mln in 2016, with the proportion of recurring revenues increasing to 84% (2016: 81%).

READ: CentralNic secures ‘.ooo’ distribution contract from Indian e-commerce giant Infibeam

The wholesale division’s revenues were up 48% and the retail side’s up 9% year-on-year.

The increase of revenue in the wholesale division was driven predominately by the .xyz and radix top-level domains (TLDs), along with registry consultancy.

Adjusted underlying earnings (Ebitda) in 2017 rose 20% to £6.61mln from £5.48mln the previous year, with the Ebitda margin rising by two percentage points to 27%.

Profit before tax rose to £1.37mln from £1.16mln in 2016.

Cash flow was positive during the year with year-end cash balances of £10.9 million (2016: £9.9 million) and net debt (excluding prepaid costs) of £7.2mln (2016: net cash £7.3mln).

The board intends at some point in the future to recommend the payment of dividends but for now, believes the money is better off being ploughed back into the business.

“The group continued its strategy to build a diversified internet services business of size and scale through an acquisitive roll-up programme which delivers high-levels of recurring revenues, quality of earnings and strong cash generation,” said Mike Turner, the chairman of CentralNic.

READ: Completion of SK-NIC acquisition

"SK-NIC, the manager of the exclusive country code top-level domain for Slovakia, was acquired in mid-December 2017 for a maximum cash consideration of €25.7 million (£22.6 million). The board anticipates SK-NIC to be earnings enhancing in line with expectations at the time of the acquisition, as well as providing access to a new international market with sustainable growth characteristics, a high renewal rate of over 86%, and the opportunity to leverage CentralNic's existing expertise and bespoke technical platforms in the domain management business,” Turner added.

"Significant growth was delivered in the Wholesale and Retail divisions, which contributed to an increase in recurring revenues and an improvement in the quality of the Group's earnings.

"Whilst the Enterprise Division made a significant contribution to the group's profits in the year under review, its contribution through one-off domain name sales reduced when compared to the prior year,” Turner explained.

"The directors are confident that the group will continue to deliver on its strategic goals in 2018, to deliver growth both organically and by expansion of the business, and further improve the percentage of recurring revenues and the group's quality of earnings," Turner said.  

View full CNIC profile View Profile

Centralnic Group PLC Timeline

Related Articles

scientist in laboratory
March 07 2019
In a January update, Instem said trading had been in-line with expectations, helped by a 500% rise in orders for its SEND platform
Background check
May 13 2019
The company provides background check and medical screening solutions for employers to give them reliable information when hiring new staff.
November 06 2018
it aims to become one of the leading firms within the health benefits industry in Canada and to launch in the US and globally

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use