Minds + Machines Group Limited Company Update: China and Strategic Review (0826M)
July 26 2017 - 2:01AM
UK Regulatory
TIDMMMX
RNS Number : 0826M
Minds + Machines Group Limited
26 July 2017
For immediate release: 07.00 26 July 2017
Minds + Machines Group Limited
("MMX" or the "Company")
Company Update: China and Strategic Review
Further to the announcement of 7 June 2017, Minds + Machines
Group Limited (AIM: MMX), one of the world's leading owners and
operators of Internet Top-Level Domains ("gTLDs"), is pleased to
announce that first year renewal rates for the first month of
registrations within its .vip domain in China have surpassed 75%,
with over 317,000 registrations renewed.
This places .vip in-line with the best-in-class renewal rates of
leading established Western facing top-level domains. Separately,
MMX continues to make good progress on securing MIIT (Chinese
regulator) approval on up to a further eight extensions for
potential future release in China.
Toby Hall, CEO of MMX, commented:
"The successful launch of .vip, and associated one-off premium
sales revenue in H1 2016, played an integral part in MMX's
turnaround last year. It is therefore encouraging to see those
sales now transition into meaningful first year renewals. This both
validates our premium pricing model and demonstrates the underlying
robustness of the Chinese domain market when appropriate roll-out
strategies are executed that are not reliant on aggressive
discounting tactics.
"The strong renewal rates, as well as new registrations that
have grown by over 45% in H1, also bode well for our premium
revenues from China in H2 as we now begin releasing our 2017 .vip
premium inventory to the broader market for the first time, off the
back of the published first year renewal rates.
"However, whilst the holding back of material premium inventory
in China, and no scheduled new domain launch in the period, will
mean H1 2017 sales will not repeat the quantum of H1 2016, the
quality and make-up of the revenue is significantly improved. This
gives the Board confidence that the Company is on track to achieve
a key benchmark where recurring revenues from renewals should be
equal to or greater than fixed overheads - earlier than
anticipated, and within the current financial year.
"The Board likewise looks forward to the wider initiatives
currently being implemented in the US and Europe, including the
launch of .boston, impacting in H2."
Strategic Review and Publication Date of Interims
The strategic review is progressing well with discussions
ongoing with a number of interested parties from Asia, North
America and Europe. A further update on progress will be provided
when the Company announces its results for the six months ended
30(th) June 2017 towards the end of September. A further
announcement providing the exact date of the results will be made
in due course.
-ends-
For further information:
Minds + Machines Group Limited
Toby Hall, CEO Tel: +44 (0)
7713 341072
Michael Salazar, COO/CFO Tel: +1 (310)
740 7499
finnCap Ltd
Corporate finance - Stuart Andrews/Carl Tel:+44 (0)
Holmes/Simon Hicks 020 7220 0500
Corporate broking - Tim Redfern/
Richard Chambers
Belvedere Communications Limited
John West Tel: +44 (0)
Kim van Beeck 20 3567 0510
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014
About MMX
Minds + Machines Group Limited (LSE: MMX) is the owner and
operator of a world class portfolio of top-level domain assets
(gTLDs). As a sales and marketing-led registry business, we are
focused on commercializing our portfolio in partnership with our
expanding global network of distribution partners.
The MMX portfolio is currently focused around geographic domains
(e.g. .london, .boston, .miami, .bayern), professional occupations
(e.g. .law, .abogado, and .dds), consumer interests (e.g. .fashion,
.wedding, .vip), lifestyle (e.g. .fit, .surf, .yoga), outdoor
activities (e.g..fishing, .garden, .horse) and generic names such
as .work and .casa. As a business, we work through our expanding
international network of registrars and distribution partners to
bring the benefits of affinity based domain addresses to B2B and
consumer audiences. For more information on MMX, please visit
www.mmx.co
This information is provided by RNS
The company news service from the London Stock Exchange
END
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