CentralNic Group PLC Premium Domain Name Sale and Trading Update (8019R)
December 14 2016 - 2:06AM
UK Regulatory
TIDMCNIC
RNS Number : 8019R
CentralNic Group PLC
14 December 2016
Press Release 14 December, 2016
CentralNic Group plc
("CentralNic" or the "Company" or the "Group")
Premium Domain Name Sale and Pre Close Trading Update
CentralNic plc, (AIM:CNIC), the internet platform business which
derives revenues from the global sale of domain names, is pleased
to announce that it has entered into its largest ever premium
domain name sale agreement under which it will receive
consideration of US$ 4.5 million.
Premium Domain Name Sale
Under the premium domain sale agreement entered into on 13
December 2016, CentralNic will receive US$ 4.5 million
consideration in cash, the proceeds of which will be utilised to
further accelerate growth within the Group. After accounting for
associated costs and using an illustrative US$/STG exchange rate,
the contribution to 2016 Adjusted EBITDA(1) is expected to be
approximately GBP2.8 million.
Pre Close Trading Update
The CentralNic Board confirmed that, as a result of this sale,
the Company expects to finish the year with earnings in line with
market expectations and substantially ahead of the same period last
year.
During 2016 CentralNic's wholesale division retained its
position as the global leader by volume, accounting for almost one
in three of all new Top-Level Domain name registrations. There are
excellent prospects for future growth moving into 2017, resulting
from a much larger base of domain names due to renew combined with
the accreditation of the .xyz TLD by China's Ministry for Industry
and Information Technology.
CentralNic's retail division became the Group's highest revenue
generator in 2016, augmented by the acquisition of the Instra Group
in January 2016. Retail division earnings are expected to be in
line with expectations in 2016, while the Group continues to focus
on developing services to stimulate future growth.
CentralNic's enterprise division has achieved record results in
premium domain name trading. Progress was also made in developing
software licensing and managed service revenues, although new
corporate customer acquisition is taking longer than
anticipated.
CentralNic CEO Ben Crawford said: "2016 has been a
transformational year for CentralNic, adding significant scale to
the Group with revenues expected to grow by over 110% and Adjusted
EBITDA by over 65%.
"The Group is now well positioned to continue to grow its
recurring earnings businesses, notably wholesale and retail, while
seeking to become an established supplier to the enterprise domain
name market. We look forward to continue executing our growth
strategy in 2017."
-Ends-
(1) Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, non-trading items and non-cash
charges
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information:
CentralNic Group plc
Ben Crawford, Chief Executive
Officer
Andy Churley, Group Marketing
Director +44 (0) 203 388 0600
Zeus Capital - Nomad and
Joint Broker
Nick Cowles / Jamie Peel +44 (0) 161 831 1512
John Goold / Alex Davies +44 (0) 207 533 7716
Peel Hunt LLP - Joint Broker
Richard Kauffer / Euan Brown +44 (0) 207 418 8900
Alastair Rae
Abchurch
Julian Bosdet / George Robinson
Rebecca Clube +44 (0) 207 398 7700
centralnic@abchurch-group.com www.abchurch-group.com
Notes to Editors
CentralNic (LSE: CNIC) is a London-based AIM-listed company. It
earns revenues from the worldwide sales of internet domain names
using its proprietary technology platform. It sells these domain
names on an annual subscription basis. Customers pay for domain
names upfront, making CentralNic a cash-generative business with
annuity revenue streams.
CentralNic comprises three business lines within the domain name
industry. It operates a global wholesale network, supplying domain
names to over 1,500 vendors in 77 countries. CentralNic is the
exclusive wholesaler for over 30 new Top-Level Domain extensions
(the new alternatives to .com and .net). These include .xyz, .site,
.online, .website, .space, and .tech. These extensions rank among
the top twenty five most subscribed new Top-Level Domains. One in
three of all domains registered under new TLDs globally uses the
CentralNic platform. This positions CentralNic as the leading
global supplier with more than eight million of these domains under
management.
CentralNic is also a leading global domain name retailer, with
retail websites including internetbs.net, buydomains.london and
domain.luxury. After acquiring Instra Group, CentralNic Group now
includes instra.com and a number of other leading retail websites.
Through its enterprise programme, CentralNic supplies domain names
(including high-value premium domain names), software and services
directly to large companies and governments.
For more information please visit: www.centralnic.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFFDSWLFMSESE
(END) Dow Jones Newswires
December 14, 2016 02:06 ET (07:06 GMT)
Team Internet (LSE:TIG)
Historical Stock Chart
From Apr 2024 to May 2024
Team Internet (LSE:TIG)
Historical Stock Chart
From May 2023 to May 2024