CentralNic Group PLC (LON:CNIC) reported a tripling of underlying revenue and earnings and said it is confident that full-year results will be around the top end of current market forecasts.
The AIM-listed company broke into the black at the operating level in the six months to end-June with a US$2.4mln profit, compared to a US$1.4mln operating loss a year ago, as it began reporting in US dollars in line with its principal trading currency.
A mixture of acquisitive and organic growth led to revenues soaring 225% to US$49.7mln, which almost all from the subscription sales of domain names and web services.
New client wins in the half included Automattic, the parent company of WordPress and of the '.blog' top-level domain, registry wins with the Kingdom of Bahrain and a South East Asian government and a portfolio of around 680,000 domain names after previous registrar Alpnames had its licence revoked by Icann.
On an organic basis, revenues grew 6%, with most of the heavy lifting coming from previous acquisitions, including KeyDrive and GlobeHosting from August and September last year, and SK-NIC from the previous year, with almost US$28mln spent on three more acquisitions in the second half.
The results, said chief executive Ben Crawford, “not only demonstrate that CentralNic can source and complete transformative acquisitions, but that it can also integrate them successfully while continuing to deliver organic growth”.
“Moreover, as we scale up rapidly, the underlying qualities of high recurring revenues and excellent cash conversion become increasingly meaningful.”
The group’s cash balance increased 73% to US$17.9mln at the half-year and net debt reduced 47% to US$6.0m, following a €50.0m oversubscribed senior secured bond offering.
Crawford said the pipeline of future deals was “strong” in a “huge, fragmented and growing market”.