CentralNic notes 2016 earnings and growth driven by Instra
Instra buyout accounts for firm’s growth last year.
Domain name firm CentralNic (AIM: CNIC) noted earnings for 2016 this morning.
The firm grew its top line and Adjusted EBITDA significantly, with almost all of the growth coming from its buyout of domain name registrar Instra at the beginning of 2016.
Revenue increased £11.74 million to £22.13 million with Instra responsible for £10.28 million of the growth.
Adjusted EBITDA increased £2.23 million to £5.48 million with Instra contributing £2.21 million in 2016.
The firm’s annual note discloses more details regarding the sale of broadway.tickets. The registry for the domain name sold the domain for $200,000 plus a 10% equity stake in the site. This might be a bit convoluted, still, as part of the deal apparently involved the site owner taking an equity stake in the .tickets registry.
CentralNic itself invested US $1.6 million for a 12% stake in the .tickets registry. So far, .tickets has only regarding 1,000 domain names in its zone.
The note also states that two clients each accounted for greater than 10% of CentralNic’s wholesale domain sales revenue. The top client (identified only as Client A) paid £287,000. I believe that .xyz, which has over 5 million domains under management, might be this client. Update: These clients are actually registrars, not registries.
