CentralNic Group PLC (LON:CNIC) has reported higher earnings and “record organic growth” in the first half of its current year despite the coronavirus pandemic.
For the six months ended June 30, 2020, the internet domain name specialist reported adjusted underlying earnings (EBITDA) of US$15.1mln, up 64% year-on-year, while revenues surged by 124% to US$111.3mln.
The company said it has seen “healthy demand” for its two largest service lines, wholesale domains and monetisation, during the period, with the latter driven by the rollout of its patented monetisation solution for secure socket layers (SSL), protocols for web browsers and servers that allow for the authentication, encryption and decryption of data sent over the internet.
Looking ahead, CentralNic said the half-year growth had indicated its “resilience despite the economic crisis”, and that it expected new product launches and further integration activities will potentially improve revenue growth and margins going forward.
The group also said it expected solid cash generation to continue, reducing net debt over time, and that its full year performance is expected to be in line with its expectations.
"In the first half of 2020 CentralNic's revenue exceeded our full year performance in 2019. These outstanding results not only demonstrate that CentralNic can source and complete transformative acquisitions, but that it can also integrate them successfully while delivering record organic growth. Moreover, as we scale up rapidly, the underlying qualities of high recurring revenues and excellent cash conversion become increasingly meaningful”, chief executive Ben Crawford said in a statement.
"Our pipeline of future deals remains strong, while our net debt level remains comfortable particularly given the profitability of the existing CentralNic Group and the expected contribution from recent acquisitions. We have also brought a number of new senior managers onboard to drive our organic growth, and we are confident in continuing our trajectory towards joining the ranks of the global leaders in our industry”, he added.