MMX 2016 Results Show 40% Registration Growth On Back of Strong Chinese Demand

Domain names under management across the 26 new gTLDs operated by Minds + Machines (MMX) jumped 40% in the last 12 months, with registrations jumping 44% to 817,000 in China on the back of developing relationships in China that has included opening an office in Xiamen, gaining a license for .vip to allow Chinese registrants to host domains within the country and applying for licenses for a further 8 more.

MMX currently operates 26 new generic top level domains with 1.081 million domains under management, according to nTLDstats.com.

MMX released its final results for 2016 to the London Stock Exchange 25 April with the company highlights for the year. The highlights included:

  • successfully transitioned into a pure-play registry on-time and on-budget
  • registrar operations shut down and customers migrated to a registrar partner
  • registry technical back-end outsourced to Nominet
  • cumbersome historic partner contract successfully renegotiated
  • company headcount reduced from 43 to 20
  • board reduced from seven to four
  • business development teams strengthened.

Post period highlights to 25 April were:

  • US and European registrations up 37% to circa 350,000;
  • China registrations up 44% to over 817,000
  • launch of .boston scheduled for release in September 2017
  • new gTLD market growth up circa 6% year-to-date at over 29 million domain name registrations
  • full year 2016 billings up 100% to $15.8million (2015: $7.9million)
  • full year 2016 revenue less partner payments up 146% to $13.5million (2015: $5.5million)
  • full year 2016 gross profit up 159% to $10.9million (2015: $4.2million).

“To understand the key market drivers of the new gTLD industry that saw net new registrations outstrip those in .com and the country codes combined in 2016, it is important to recognise the trends both from within the industry as well as external factors,” said Toby Hall, CEO of MMX.

“It is therefore central to our strategy that we are positioned to support the three end markets that management sees are looking to benefit from those trends through our registrar partners – namely; new-start SME's that are coming online for the first time, as well as established businesses already online; digital entrepreneurs that are looking to develop significant new markets and applications based around domain address conventions and domain investors who serve both as early pioneers, as well as marketeers, of new extensions.

“We believe much of the business development work and tests we have been conducting over the last 12 months are now providing the backdrop to the growth the portfolio is now enjoying and will, we believe, continue to enjoy.”

“We continue to have significant scope for billings and revenue improvement as the Group's premium and standard name inventory across its world-class portfolio of top-level domains is better monetised.

“In short, the progress we made in 2016 to restructure the business into a pure-play registry and cost efficiently enter new markets has built strong foundations for the current year and beyond. We therefore remain confident of our ability to deliver meaningful value as we continue to grow our domains under management and resulting revenues and transition the Group into a highly predictable annuity based business of scale.”