PIR (.org) releases annual note, shows impact from fresh Afilias deal

Margins are up thanks to renegotiated contract with Afilias.

Public Interest Registry (PIR), the organization that operates the .org top level domain, released its 2018 annual note today.

The note includes data for 2018 and gives the first indications into its fresh contract with Afilias to run the technical backed of the registry.

PIR put the technical contract out to bid in 2016. Twenty firms responded to the RFP but PIR decided to stick with Afilias.

The fresh contract started in 2018. In 2017 PIR paid Afilias $37.8 million, which is much higher than many registry operators would charge.

We won’t know for sure how much Afilias earned on the .org contract in 2017 until PIR files its 2018 tax return later this year. But it is notable that PIR’s operating income increased from $38.9M in 2017 to $45.9 million in 2018, an improvement of $7.0 million.

The total cost of revenue in 2018 was $32.9 million.

Afilias’ fees aren’t the only thing in these numbers. And, frankly, I expected to see a bigger change under the renegotiated contract. It’s possible that the fresh contract reduces prices over time to reduce the impact on Afilias.

The full annual note is here.