Verisign logo

Verisign Hiking .NET Registration Fee 10%

Verisign logoVerisign’s registration numbers for .com and .net are motoring along nicely, according to their financial results for the second quarter of 2015, but the sting came at the end of their announcement: they are hiking the registry fee, the fee charged to registrars by ten percent.

From 1 February 2016, the annual fee for a .net domain name registration will increase from $6.79 to $7.46 as per its agreement with ICANN.

Among other highlights of their financial results were:

  • 0.52 million net new names were added during the second quarter, ending with 133.5 million .com and .net domain names in the domain name base, a 3.1 percent increase over the base at the end of the second quarter in 2014, as calculated including domain names on hold for both periods.
  • In the second quarter, Verisign processed 8.7 million new domain name registrations for .com and .net, as compared to 8.5 million for the same period in 2014.
  • The final .com and .net renewal rate for the first quarter of 2015 was 73.4 percent compared with 72.6 percent for the same quarter in 2014. Renewal rates are not fully measurable until 45 days after the end of the quarter.
  • Verisign ended the second quarter with cash, cash equivalents and marketable securities of $1.9 billion, an increase of $460 million as compared with year-end 2014.
  • Cash flow from operations was $175 million for the second quarter of 2015, compared with $121 million for the same quarter in 2014.
    Deferred revenues on June 30, 2015, totaled $932 million, an increase of $41 million from year-end 2014.
  • Capital expenditures were $9 million in the second quarter of 2015.
  • During the second quarter, Verisign repurchased 2.5 million shares of its common stock for $156 million. At June 30, 2015, $761 million remained available and authorized under the current share repurchase program which has no expiration.
  • For purposes of calculating diluted EPS, the second quarter diluted share count included 17 million shares related to subordinated convertible debentures, compared with 11.3 million shares in the same quarter in 2014. These represent diluted shares and not shares that have been issued.