Company can finally put .London fiasco behind it.
MMX, aka Minds + Machines Group Limited (AIM: MMX), announced preliminary results for the first half of 2019 today. It also made two big announcements.
Cash inflows in the half were $8.6 million compared to $6.3 million in the same period last year. The company received $1.6 million from losing top level domain auctions. It also says that the ICM Registry portfolio of domains (adult domains including .xxx) has stabilized and the company believes it can make them grow going forward.
Looking beyond the numbers, MMX made two big announcements.
First, it has made an agreement on one “legacy contract” that should settle it once and for all. While the company doesn’t identify which TLD the contract covers, it’s an open secret that it’s .London.
The company will make a one-time payment of $5.1 million to cover all of its liabilities on the .London contract. That’s better than its current estimated liability of $7.9 million. .London will go down as one of the worst new TLD deals ever, and having it behind the company will be a big boost.
Second, the company is going to use up to £1 million of its cash reserves to buy back shares. This should help put a floor on the share price for a while. Shares have traded at about 5.0-6.5 pence for the past six months.