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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
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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.

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