CentralNic doubles sales again and looks for more in 2020

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.

CentralNic is headquartered in London but also has offices in New York, Dubai and Los Angeles with account executives in Hong Kong, Abu Dhabi and Melbourne.

What it owns

CentralNic 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 it acquired last year in a reverse takeover for an initial sum of US£35.8mln.

KeyDrive 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.

Four acquisitions were made recently: KeyDrive, Hexonet, TPP Worldwide and Team Internet.

How it's doing

In its results statement covering the year ended December 31, 2019, CentralNic celebrated a record year with revenue up 95% to US$109.2mln from US$56.0mln in 2018; excluding the effect of acquisitions, revenue rose 61% year-on-year. Adjusted underlying earnings (EBITDA) were up 96% to US$17.9mln from US$9.1mln the previous year.

Net finance costs rose to US$7.76mln from US$1.43mln, resulting in the loss before tax widening to US$8.12mln from US$1.43mln in 2019. Net cash flow from operating activities after tax was higher than the previous year at US$16.3mln (2018: US$8.8mln).

Investing activities were mainly related to the four acquisitions completed during the financial year. The net cash outflow totalled US$79.4mln in 2019 as compared with US$17.6mln in 2018 when the KeyDrive acquisition was largely financed through an issue of equity.

The group's cash balance at the end of 2019 stood at US$26.2mln, up from US$23.1mln a year earlier while net debt, including pre-paid finance costs, had expanded to US$75.0mln from US$3.2mln a year earlier.

Inflexion points

  • The company recently reshuffled its leadership with a number of new appointments and director changes
  • In March, the group hailed a turnaround of its Team Internet business, which it acquired at the end of 2019, which recorded revenue of US$74.0mln and adjusted underlying earnings (EBITDA) of US$12.3mln between 1 January 2019 through Read More – Source
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