Minds + Machines Group Limited announced its unaudited interim results for the 6 month period ended 30 June 2014.
During the period, total sales in H1 2014 increased 4114% to £295,000 primarily as a result of our registrar business, which launched in November 2013. Minds + Machines anticipates meaningful growth from their top level domain business to begin in H2 2014.
Operating profit in H1 2014 – up 255% at £2,924,000 – primarily reflects proceeds from the sale of gTLD assets (Other Long Term Assets) via the private auction process. In the year ending 31 December 2014 they expect operating profits to increase further from participation in private auctions, the sale of domain names via the registry and registrar business, and revenue from the Registry Service Provider business line.
Administrative expenses, however, increased in the period as a result of increased operational activities, in particular marketing spend, as they began early launch stage activities across a number of gTLDs.
Intangible assets also increased significantly in H1 2014 – up to £16.5 million from £1.6 million at the year-end as a result securing gTLD assets. Intangible assets are expected to increase further – and other long term assets decrease – in the latter part of 2014 as additional gTLDs are secured and contracts signed with ICANN, and MMX withdraws its interest in certain gTLDs via private auctions or some other form of agreement with contended applicants.
Cash and cash equivalents have also risen significantly standing at £20 million as a result of private auction proceeds received from participation in 8 private auctions as well as an equity raise of £21 million in January 2014.
- Significant growth in revenue (up 4114%), operating profit (up 255%), cash and cash equivalents (up 120%) and net assets (up 89%);
- Participated in 12 private auctions, securing an additional 4 gTLDs raising our portfolio of wholly owned or partially owned gTLDs to 24;
- First domains within portfolio successfully launched; and
- Expansion of consumer-focused registrar services, due to launch in early Q4, progressed.
Executive Chairman,Fred Krueger,commented:
“These are exciting times and we are still only at the very early stages of the new generic TLD roll-out programme. During the first half of the year, we have focused both on how best to grow our portfolio of wholly or majority owned top level domains and how best to address the markets for our existing portfolio of TLDs.We believe that the overall performance of our new TLDs, and the Group as a whole, greatly benefits from our having our own additional registrar channel through which to market and sell our new TLDs, including our portfolio TLDs, directly to consumers. We look forward to continuing to develop our consumer focused registrar services.
All in all, we believe that the Company’s new TLD portfolio, human capital and operational and financial structure have usvery well placed to continue succeeding in the future.”