CentralNic joins the nine-figure revenue club.
CentralNic (London AIM: CNIC), a rollup of domain name companies, announced today that its unaudited 2019 revenue was $109 million. That’s up 95% year-over-year, buoyed by a full year of KeyDrive revenue.
I expect revenue to surge further in 2020 thanks to the acquisition of internet advertising company Team Internet in the final days of 2019.
CentralNic has turned to the debt markets to underpin its acquisitions. At the end of the year, it had $76 million net debt after adding an additional tranche of a €40 million bond on December 23 to complete the Team Internet acquisition.
It will be interesting to see how the markets treat CentralNic going forward. Its growth-by-acquisition model has been fruitful, but at some point, investors will want to see organic growth of its underlying assets.