Revenue down as expected, renewals covering OPEX.
MMX (Minds + Machines London AIM:MMX), one of the few remaining public companies selling new top level domain names, released earnings for the first half of the year today.
The results are a mixed bag. The company prepared the market for a drop in revenue because of a spike last year when .VIP was launched.
Billings decreased from $8.05 million in the same period last year to $5.61 million. Revenue dropped from $7.38 million to $5.28 million.
At the same time that topline numbers dropped, partner payments and cost of sales increased.
However, the company is achieving one of CEO Toby Hall’s key goals, which is to get renewal revenue to cover fixed OPEX “allowing new sales to increasingly drop to the bottom line.”
The company also sold over $3 million of .VIP domains subsequent to the end of half.
One of the tricks for MMX will be to increase registrations in the TLDs other than .VIP so that fluctuations in .VIP doesn’t have an outsized impact on results. The company announced contracts of $1.0 million for premium .London domains, so that might help.
The company also revealed this it pocketed $2.4 million from losing auctions for the .inc and .llc domain names.