Pureplay strategy for new top level domain name company is working; investor buys more shares.
MMX (Minds + Machines) reported first-half earnings today and announced a big investment from a Cayman-based fund backed by a Chinese investment group.
Looking at it in the best possible light, MMX had a $2.0 million operating EBITDA for the first half after excluding the registrar and backend registry business as well as restructuring costs. MMX’s top line for H1 was $7.4 million, helped by the launch of .VIP.
Its actual net profit from continuing operations was $56,000. Factor in discontinued operations and it lost $1.9 million in the first half.
But the results are quite promising, and it shows that MMX is making the right moves by shuttering its retail registrar platform and outsourcing its backend registry functions to Nominet.
The registrar business lost a whopping $4.7 million last year. It’s no wonder that the new management decided to nix this business, especially since it was creating channel conflict with other domain name registrars. Click to continue reading…