LONDON (Alliance News) - Minds + Machines Group Ltd Wednesday said it swung to a profit in the half year to end-June, boosted by proceeds from auctions for generic top level domains, which offset higher administrative costs.
The internet domain name operator has been competing in auctions for a number of new generic-top level domains, meaning a suffix of an internet address such as .com or .net, following changes to rules governing domain names which has allowed a slew of new domains.
Minds + Machines posted a pretax profit of GBP2.9 million, from a loss of GBP1.9 million in the previous year, boosted by a GBP7.1 million profit from participating in generic top level domain auctions, as revenue rose to GBP68,000 from GBP7,000. Administrative costs rose as the company increased marketing spend and began early launch stage activities across a number of its domains.
Minds + Machines withdrew from eight contested applications for generic top level domains during the half year, and as a result of participating in private auctions that it did not win, received a portion of the auction proceeds.
During the half year the company participated in 12 private auctions, and secured 4 additional generic top level domains for its portfolio.
The company launched one of the first domains in its portfolio, .london, in early September, followed by its first set of wholly or majority owned domains last Monday. Three further top level domains are set to go into general availability towards the end of the month.
Minds + Machines has focused on addressing markets for its existing portfolio during the half year, and has sought to develop and expand its registry services so that it has its own channel through which to market and sell its new top level domains.
Although these new domains are in an early stage, Minds + Machines is confident that as major brands start to bring their generic top level domains online, such as .bbc, it will help raise awareness in the wider public.
"All in all, we believe that the Company's new TLD portfolio, human capital and operational and financial structure have us very well placed to continue succeeding in the future," said Executive Chairman Freddy Krueger in a statement.
Minds + Machines also said Wednesday it has won the auctions for new generic top-level domains .law and .vip, although it lost out on .tech and withdrew from a number of others.
The company gained cash of around USD6.2 million from withdrawing from its applications for .design, .flowers, .group, .realestate and .video in private auctions.
It bought up .vip for around USD3.1 million in an auction sponsored by the Internet Corporation for Assigned Names and Numbers. However, it lost out on .tech, and as that auction was also sponsored by ICANN, it did not receive funds from the winning bidder.
Minds + Machines won .law with a third party, and this third party will receive a share of ongoing .law revenues, although it will not be involved in the management, operations or policy-making of the domain.
These wins take Minds + Machines portfolio of uncontested domains to 26 via either majority ownership or an interest in a joint venture; it also has interests in a further 6 client uncontested domains.
It has 25 remaining contested applications, and its clients have interests in a further three contested applications. The company believes that a majority of the outstanding domains will be resolved through the private auction process.
Shares in Minds + Machines were trading up 8.5% at 11.39 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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