LONDON (Alliance News) - Minds + Machines Thursday said it has "evolved considerably" during its second quarter to end-June, and said it believes recent cost cutting and the development of its direct sales team will lead to increased revenues from domain name sales over the next year.
The top-level domain owner and operator said it saw strong growth in sales of standard names during the quarter, up 83.55% over the first quarter, partly boosted by its discounted promotion for the top level domain .work. As a result of this promotion average revenue for standard names is likely to be below its key performance indicator target for the first half.
The company is focusing heavily on managing its operating costs to speed up its move to profitable growth. It said it has achieved annualised savings of USD1.3 million as a result of headcount reductions it made in June. It is also reviewing further measures it believe could "deliver significant additional cost reductions" without hitting sales and marketing activity.
There were no top-level domain launches in the second quarter. In the second half Minds + Machines expects to benefit from the launch of three new generic top level domains, and its first batch of 10 top level domains come up for renewal.
"We have actively transitioned from what was a tech-heavy business in development mode that has created a highly functional registry operation and a basic registrar for specialised use, into a highly focused and sales-driven organisation that will build on our revenue-generating tech foundation," said Chief Executive Antony Van Couvering in a statement.
Minds + Machines will release its interim results in September.
Shares in Minds + Machines are trading down 1.8% at 7.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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