Proactive Investors - Run By Investors For Investors

CentralNic earnings double in first half as it eyes further acquisitions following KeyDrive

The web domain services group reported adjusted underlying EBITDA for the period of £2.1mln, up 95% on the same period a year ago, while revenues climbed 30.7% to £3.9mln
Web address
CentralNic said future acquisitions would align well with one of its four industry channels

CentralNic Group PLC (LON:CNIC) saw its adjusted earnings nearly double in the first half of the year, with the company saying it was eyeing further acquisitions going forward.

The web domain services group reported adjusted underlying earnings (EBITDA) for the period of £2.1mln, up 95% on the same period a year ago, while revenues climbed 30.7% to £3.9mln.

READ: CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting

In its outlook, CentralNic said future acquisitions would align well with one of its four industry channels of corporate, registry, and reseller & retail, with the technology platform “very strong” following its post-period end acquisition of KeyDrive in July.

The firm added that it also had access to funding following a £24mln equity raise in August to fund the KeyDrive acquisition.

Looking ahead, the firm said trading would be in line with expectations for the year with an initial dividend to be paid in the 2019 financial year.

Mike Turner, chairman of CentralNic, said "2018 will be backend loaded following the KeyDrive acquisition occurring in August, second-half results will show a heavier weighting than those of the first-half. The Board is confident that the Company is on track to meet market expectations for the full year to 31 December 2018."

WATCH: CentralNic Group PLC set to double in size with KeyDrive acquisition

CentralNic entered an agreement to acquire KeyDrive, a firm that develops and operates software platforms used for selling subscription-based tools for businesses to operate online, in July for US$35.8mln, representing an enterprise value of US$44.5mln, plus a performance-based earn-out of up to US$10.5mln.

Earlier in September, the group boosted its acquisition portfolio further with the business assets of GlobeHosting Inc, a Romania and Brazil-focused registrar and domain hosting provider based in Delaware.

READ: CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting

At the time, CentralNic said the €2.56mln transaction would “fit comfortably” into its retail and reseller divisions, adding that significant adjustments in Romania’s ‘.RO’ country code would benefit GlobeHosting as internet penetration in the country increased.

Shares were steady in early morning trading Wednesday at around 52p.

CentralNic carries a market cap of around £90mln.

View full CNIC profile View Profile

Centralnic Group PLC Timeline

Related Articles

Data stream
November 28 2018
The firm recently reported wider margins and a narrowed loss in its first half, with chairman John O'Hara saying the company was expecting to enter profitability in the full 12 months
Software data
November 06 2018
The product will help companies in the commodities and energy sectors by automating the processes required to ensure compliance with the FCA's regime
Cloudbuy's online purchasing portal
April 18 2018
"We remain convinced that we have a unique product and a great partner in NHS Shared Business Services to maximise the roll-out of PHB's and Integrated Commissioning across Health and Social Care," the company said.

© 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