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CentralNic on track after premium domain name deal

By BFN News | 07:57 AM | Wednesday 14 December, 2016


CentralNic will receive US$4.5 million in cash after entering into its largest ever premium domain name sale agreement. The proceeds will be used to accelerate growth within the group. After accounting for associated costs and using an illustrative US dollar/sterling exchange rate, the contribution to 2016 adjusted EBITDA is expected to be approximately £2.8 million. The CentralNic board confirmed that, as a result of this sale, the company expects to finish the year with earnings in line with market forecasts and substantially ahead of the corresponding period last year. CentralNic says that during 2016 its 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. It says 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. Chief executive 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." Story provided by StockMarketWire.com

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