MMX Domains Under Management Rise 34% in 6 Months

By September 27, 2017 New TLDs, Registry No Comments

mmxco-logoIn a period of what Minds + Machines (MMX) refer to as “consolidation”, domains under management (DUM) for the 27 new gTLDs they currently manage has risen 34% in the 6 months to 30 June, according to their unaudited interim results released Tuesday. Today DUM stands at 1.084 million according to nTLDstats.com.

The first half of 2017 also saw top-line billings of $5.6million (revenues $5.3million), which they called “a strong performance given key 2017 inventory releases” were held back until the second half of 2017. The billings and revenue compare to the first half of 2016 where there was $8.1million in billings ($7.4million revenue) driven by the .vip launch.

Other highlights outlined in the MMX statement were:

  • Quality of earnings significantly improved, renewal revenues increased more than two-fold to $2.4million (45% of H1 2017 gross revenue), compared to $1.1million H1 2016 (15% of gross revenue);
  • Central KPI target of renewal billings to be greater than fixed OPEX achieved for first time in period:
    H1 renewal billings nearly tripled to $3.1million;
  • Fixed OPEX reduced 45% to $2.6million when compared to the Group’s full operating costs in H1 2016 (30% when compared to 2016 ongoing operations);
  • H1 Operating EBITDA of $0.2million (H1 2016: $1.1 million) generated in spite of $2.1million lower revenue in period;
  • Net cash contribution of $0.2million generated from operations, $80k ahead of H1 2016;
    Cash and cash equivalents of $14.2 million at period end (H2 2016: $15.3 million), the decrease primarily due to payment of provisioned liabilities;
  • H1 2016 group losses of $1.9million reduced to $0.5million group loss H1 2017 – H1 2016 loss per share of 0.24cents reduced to 0.08cents H1 2017.

“The first half of 2017 has been a period of consolidating the transformational progress of 2016 with the business on course to deliver its maiden year of profitability as an operating business this financial year,” said Toby Hall, CEO of MMX.

“Importantly, the quality of earnings in H1 2017 have dramatically improved. Renewal billings have nearly tripled to $3.1million in the period from $1.1million last year with renewal revenue more than doubling to $2.4million accounting  for 45% of H1 revenue compared to 15% in H1 2016.

“The Company has likewise continued to work hard to manage down costs with fixed operating costs reduced by 30% to $2.6million in H1 2017 when compared to those of the continuing operations of H1 2016 ($3.8million) and by 45% when compared to the Group’s full operating costs in H1 2016. This has allowed the business to achieve one of its central KPI’s  of renewal billings being greater than fixed OPEX for the first time in the period allowing new sales to  increasingly drop to the bottom line.”

“As a result of the completed restructuring, off comparatively lower H1 billings of $5.6m due to the decision to hold back key new inventory releases to H2 – the business has transformed a H1 2016 billings based group loss of $0.5million to a H1 2017 $0.2million profit. And with the current momentum of Q3 sales, where sales of approximately $6million have already been achieved to date, the business is well on course to deliver its first year of profitability. The Directors therefore look forward with confidence, the strategic review process remaining ongoing as the Company and its advisors look to an outcome that can best enable an acceleration of what we increasingly consider to be a de-risked, proven business model that is delivering a balanced mix of revenues across the regions.”