What CentralNic does
CentralNic Group PLC (LON:CNIC) is a provider of registry services for internet domains, a string of characters (e.g. ‘.com’, ‘.net’, or ‘.gov’) used to identify administrative authority or control of different websites online.
Headquartered in London but also with offices in New York, Dubai and Los Angeles and account executives in Hong Kong, Abu Dhabi and Melbourne, the group operates its own proprietary registry engine that uses in-house IT systems to distribute its portfolio of domains across a network of 1,500 registrars, such as domain retailer GoDaddy.
The firm also owns domain name technology firm KeyDrive, which develops and operates software platforms used for selling subscription-based tools for businesses to operate online, including domain names, hosting, email, domain portfolio management and online advertising services.
Underlying profits rose by 71% to US$36mln, with an operating profit of US$0.4mln. Pre-tax losses were US$9.4mln (US$6.6mln) after higher amortisation costs, share-based payment adjustments and finance costs.
How it’s doing
CentralNic’s revenues and underlying profits soared in 2020 helped by organic growth combined with acquisitions.
Revenues jumped by 121% US$241mln in the year to end-December 2020, which the website and domain name specialist said was more than the past five years added together.
The AIM-listed group said it saw healthy demand for its two largest service lines, Wholesale domains and, most importantly, Monetisation – the latter also driven by the rollout of a patented SSL monetisation solution in late 2019.
What the boss says: Ben Crawford, chief executive
“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 with 99% of revenue derived from sales of recurring products and services and high cash conversion calculated at 106% on an adjusted basis become increasingly meaningful.”