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CentralNic results show continued scaling up of web domain business

The acquisition of Instra Group, completed in January, may be seen as transformation for CentralNic but today’s results for 2015 nevertheless show strong organic growth in the business too.

Finger on incomplete www. url on a web browser - represents concept of website domains
The web domain group’s revenue rose 71% to £10.39mln.

Financial results from CentralNic Group Plc (LON:CNIC) show the web domains group continues to add scale to is business, something that will be further boosted by the recent acquisition of Instra Group.

Instra Group was acquired in January and the deal is seen as ‘transformational’ by chairman Mike Turner.

CentralNic - which acts as a wholesaler and technical partner to companies selling new internet domains – bought out its rival and in doing so cemented its dominant position in its sector. The group’s leading position was further underlined last month, as it became the first new domain wholesaler to reach 4mln domain sales.

In results for the twelve months to December 31, meanwhile, CentralNic continued to show organic growth.

Revenue rose 71% to £10.39mln, up from £6mln in the previous year.

Gross profit was reported at £4.86mln, up from £3.3mln, while earnings (adjusted EBITDA) was stated as £3.25mln (from £1.7mln) and pre-tax profit amounted to £1.45mln (from £520,000).

The company said it generated some £5.68mln of net cashflow last year versus a 2014 comparative of £1.4mln.

In his accompanying statement, Turner said: "2015 was a positive year for the Group, with progress made in terms of increasing the scale of the business.”

He added: “The opportunity in our market is considerable, with the continuing roll out of new Top-Level Domains and enduring demand for established generic and country code Top-Level Domains presenting the Group with retail and wholesale opportunities across the majority of the world's markets. 

“Indeed, while the world's internet users are still less than half of the global population, the industry is set to continue growing, especially with increasing access to mobile data devices across emerging markets.

"There is still work to be done to transform our business but we have demonstrated positive steps with the acquisition and integration of Instra.”

Quick facts: Centralnic Group PLC

Price: 78.485 GBX

Market: LSE
Market Cap: £182.13 m

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on 04/28/2015

2 min read