CentralNic Group PLC Report: Net revenue increased by 4% to £3.05 million in 2013

CentralNic (AIM: CNIC), the owner and manager of an internet distribution platform which derives a revenue share from sales of internet domain names into markets across the world, today announces its audited results for the year ended 31 December 2013.

The Company expects to publish the Annual Report on 19 May 2014, and the Company’s Annual General Meeting will be held on 11 June 2014.

Operational highlights

• Successful listing on AIM on 2 September 2013, raising £5 million in cash for the Company (£4.2 million after costs)
• Signed contracts to supply domain names to an additional 114 domain retailers from 32 countries, including leading Chinese registrars and the world’s largest domain name retailer, GoDaddy, which collaborated with CentralNic on a significant promotion for the .LA domain in Los Angeles in July 2013
• The CentralNic-distributed domain name .PW has been the world’s most successful Top-Level Domain (“TLD”) launch since .co was re-launched in 2011, attaining sales of 250,000 domains within the first six months of retail. CentralNic also launched domains ending .in.net, .mex.com and .Africa.com
• 25 new generic Top-Level Domains (“gTLDs”) have passed ICANN’s initial evaluation and, being uncontested, will be exclusively powered by CentralNic when they launch from mid-2014. An additional 26 gTLD applications have passed initial evaluation and remain candidates for CentralNic to distribute

Financial highlights

* – Earnings before interest, tax, depreciation, amortisation and non-cash charges; excludes share based payments expense of £66,447

• Billings (including partner share) increased by 15% to £3.89 million (2012: £3.38 million)
• Net revenue increased by 4% to £3.05 million (2012: £2.93 million), despite being in the pre-revenue phase for new Top-Level Domains. Domain net revenue grew by 7% to £2.65 million (2012 £2.48 million) with growth from .PW revenues, while revenues in other domains distributed by CentralNic were sustained
• Gross profit margin increased to 76.6% (2012: 73.4%) reflecting the Company’s ability to grow registry revenue with minimal incremental cost
• Adjusted EBITDA of £1.02 million (2012 £1.13 million), reflecting a year-on-year increase offset by £0.20 million of investment in resourcing the registrar business, further developing the registry business and costs related to the new status as an AIM-listed business
• Net cash-flow from operating activities increased to £1.13 million (2012 £0.98 million) reflecting timing of customer payments on account and an increased accrual for partner revenue share.

Post year end

• Five new gTLDs entered launch phase in March and April 2014: .wiki; .xyz; .ink; .bar; .rest
• Four additional gTLD distribution contracts won – .website, .press, .host and .space, plus the distribution contract for .co.com
• Preferred supplier agreement signed with Domain Venture Partners (Fund II)
• Fully owned retail subsidiary TLD Registrar Solutions (“TLD RS”) launched with retail websites for .menu, .build, .luxury and .london
• DomiNIC Domain Management software development progressing and marketing commenced

Commenting on the results, John Swingewood, Chairman of CentralNic, said:

“The Directors are extremely pleased with CentralNic’s strategic progress in 2013. The Company is achieving sustained growth resulting from the continued demand for our domain names, establishing new retail channels and securing new inventory. The Board is particularly pleased that these results are yet to include revenues from sales of our pipeline of new Top-Level Domains or of our new retail websites, all of which are starting their launch activities in mid-2014.

“Our objectives when we listed on AIM last year were to accelerate our growth through securing new retail channels, including our own proprietary channels, and obtaining new inventory through commercial and government contracts, including making strategic investments in new TLD applicants. I am delighted that we made progress in each of those areas in 2013. The Board is excited by the considerable opportunities for CentralNic and is confident that the Company will achieve its commercial targets for 2014.”