Instra acquisition accounts for company’s growth last year.
Domain name company CentralNic (AIM: CNIC) reported earnings for 2016 this morning.
The company grew its top line and Adjusted EBITDA significantly, with almost all of the growth coming from its acquisition of domain name registrar Instra at the beginning of 2016.
Revenue increased £11.74 million to £22.13 million with Instra responsible for £10.28 million of the growth.
Adjusted EBITDA increased £2.23 million to £5.48 million with Instra contributing £2.21 million in 2016.
The company’s annual report discloses more details about the sale of broadway.tickets. The registry for the domain name sold the domain for $200,000 plus a 10% equity stake in the site. This might be a bit convoluted, however, as part of the deal apparently involved the site owner taking an equity stake in the .tickets registry.
CentralNic itself invested US $1.6 million for a 12% stake in the .tickets registry. So far, .tickets has only about 1,000 domain names in its zone.
The report also states that two customers each accounted for greater than 10% of CentralNic’s wholesale domain sales revenue. The top customer (identified only as Customer A) paid £287,000.
I believe that .xyz, which has over 5 million domains under management, might be this customer. Update: These customers are actually registrars, not registries.