Good morning to all that side of the pond !
Hope everyone is keeping as safe as they can !
Re: mmx :
Imho just getting swept along with the market .
Don’t think directors can buy right now as they are in the 6 week “ closed period “ before results published .
My 2 cents for what it’s worth ....
Domain registries fared pretty well during the 2008-2010 recession vs most .
Premium values take a hit but we are less reliant on those .
Cash is king and mmX has plenty so again imho can “ survive “ pretty much most down turns as have a years with of opex cash .
If this turns into a full blown and long lasting recession (2+ years ) then there is a chance that domain holders may trim their portfolios of unused names but generally for a company cost of domains is almost next to the price of the office coffee is terms of overall expense so isn’t a first look for cost savings .
As ever the danger may be with SP at 5p and cable at 1.15 then a cash rich brave USD based PE group could make a cheeky bid as market cap is just over $50MM USD right now ...
Chump change vs 1.35 BN for .org ....
Stay safe my friends , may be in for several months of this from the look of it .
On the other hand will be plenty of great buying opportunities over coming months for long term planners !
I , for one , won’t be selling any MMX at these prices as no doubt what happens the company has substantially more value than that which will still be intact on the other side .
At least Rory is at home all day now with the PGA. Tour on hold so I may get a game of darts or snooker in :-)
More than ever , all my best ...
Stuart Lawley
Radix reports over 54% growth in profit for 2019, revenue grows by over 26%
March 4th 2020, Singapore. Radix, one of the world’s largest nTLD portfolio registries, announced today that it grossed over $21M in total revenue in 2019, a 26% rise over its revenue in 2018. The registry’s net profit also grew by 54% in comparison to last year. Overall, Q4 2019 was its strongest quarter.
In the total annual revenue of over $21M, 25% has been contributed by standard registrations and 64% by standard renewals. Radix’s premium domains cumulatively generated over $2M in revenue, of which 58% can be attributed to premium renewals. One-time premium sales contributed to over $93K in revenue. The $21M in revenue is net of all discounts and rebates.
Based on registrars’ country data, the top contributor to Radix’s revenue has been the United States with 50% of the total share, followed by Germany with 12%, and China with 7%.
In 2018, Radix had reported a 45.6% growth in net profit over the previous year. With a 54% growth in 2019, Radix has managed to increase YoY growth rate in net profit owing to increased economies of scale and better resource allocation.
Currently, Radix is the only portfolio registry that has two of its nTLDs with over 1 million domain registrations each. While .ONLINE hit the 1M milestone in November 2018, .SITE joined the 1M league in February 2019. Late last year, Radix acquired .UNO; it’s second 3-letter nTLD after .FUN.
Silver ,
Yes : cfo . Responsible for counting the money
Cro. Responsible for finding the money ( another Name for sales director - Vaughn is sales and only sales all day long
silver ,
Don’t get me wrong , I am 100 % confident these hires have been made by Toby and mIchael and in no way enforced on them : that just isn’t how MmX ticks . The hires do , as I said , give me for one extra comfort.
Is clear something didn’t gel with TonY F and Len B from ICM at mmX and they were let go but good to see other hires promotions in hand to replace them .
I’m a bit rusty on Corp governance but I think an officer is different from a director and prob doesn’t need disclosing . Again , guessing only but wouldn’t surprise me if the NEDS pushed for these senior appointments . I always saw Micheal as more CFO than COO , so a very welcome addition . Ben is very capable . In fairness I do believe that mmx May have been close to landing Vaughn some 18 months ago but Frank persuaded him to stay .
From whatever vantage point I think these are good adds.
For a while I think it was difficult form mmx to get top industry talent , how things have changed in 3 years .
Silver,
Fair points although I would say as follows and I preface this with these are just my opinions not based on any direct knowledge on the ground so to speak.
Vaughn is a very solid performer. I have known him for over 30 years since we traded an NEC fax machine from the boot of my XJS at Sandbach services on the M6 in 1988 ;-) He worked for me for several years and was, in fact sales director at ICM at Launch in 2011... His remuneration will be largely performance based I would guess.
Ben worked for many year aCSCone of the major white glove brand protection RARS and will know intimately how the Uniregistry back end works.
I had expected that the ex ICM COO Tony Farrow would migrate into that role at MMX but clearly that didn't work out and im glad to see they have appointed a new person.
I think for us as shareholders this is a good thing as I bolsters senior management, Im sure with other staff losses elsewhere this won't be a nett increase in OH. Also it gives us safety that in the vent that the exec directors left or had to be removed it isn't only their hands that know how to work the levers of the business. Too much operational expertise resting solely in the hands of not large stockholding directors never rests easy with me, so these appointments fives me extra comfort.
I applaud Toby and Michael for making them.
My inbox lit up yesterday with News that both Vaughn Liley and Ben Andersen had both left Uniregistry and joined MMX as chief Revenue officer ( sales ) and COO respectively .
This is public information on their LinkedIn pages .
I know respect and like both individuals so I see this a a good move by MMX .
Best of luck to all parties .
Very will put Silver ,
And yes the best “ bet “ is for them to keep chunking out cash profits and wait for the right buyer at the right price is the best value creation at this point imho .
Keep it lean so that the acquirer can make the OH savings needed .
And intermediate deal with another mid tier portfolio player could make sense on a 2+2 may equal 6 to the right bigger player and makes a $40M rev opportunity unmissable .
Your insight is always appreciated .
Huckster ,
Of course , is just a question of assessing the values of both parties . My guess is that in truth they are worth the same ( ish ) or perhaps with mmx just edging it so a deal could be done , install frank and executive chairman , rationalize and look for a $500Mm exit ..
Is all doable .
I am meeting Frank Socially to congratulate him on his sale in person in the next week or so . Will be interesting to get his take on it .
As I have said before Frank a very shrewd operator .
I am sure he has some kind of plan :-)
Meanwhile is looking like the .org deal will be going through now icann have extracted their pound of flesh via pics commitments .
All of this is imho good news for MMX medium term
Scotty ,
Frank did NOT sell his 24 tld registry business as part of this deal .
Just his registrar and 350,000 mainly .com portfolio .
His 24tlds have circa only 400,000 regs total and like mMX some of them are partnership deals .
I would think revenues approaching the same as MMx , c $20MM.
With him now just having the registry business I think is good news for mmx .
A potential merge ? And then sell the combined to one of the big PE players ..
Many permutations but does now clear the field to a degree and lines up further consolidation imho .
Don’t forget uniregistry ( the part kept ) runs the back end now for the former icm adult Tlds .
I don’t think any discount applies anymore :
Just a basket of 31 Tlds . Was the reason for the deal we did .
Dissipate the “ odor “ .
Meanwhile https://domainnamewire.com/2020/02/13/donuts-hires-new-cfo/
Good read and how I see it playing out with mmx and Uniregistry tagged in pre ipo
Buyout ,
Some of the Uniregistry regs are high priced so wouldn’t surprise me if revenue is about the same .
Although I agree , imho the mmx portfolio worth more . $180MM is 20 cents a share over 15p
Nah ,
It leaves Uniregistry with circa 25 tlds some part owned , 400k registrations and I know frank values it at least at $150MM
31 tlds with 2.4 MM regs imho trumps that :-)
Someone will buy both
Bakky ,
I wouldn’t know for sure as is just a total “ educated “ guess and yes one could see that number build and retention rates for such big brand defensives over 95% historically . Some may have bought multi year and paid for such ...again just a guess , actual could be half that or double but I have a feeling may be about right based on having launched those tlds .
Bakky ,
Again kept the right side of the fence and didn’t ask but my gut feel tells me is in the region of $1.5 to $2 MM region .
Effectively all to bottom line .
Cash collected in early 2020 as is on “ post pay “ model .
Again , having been “ straightened out” by Toby on the mmx legacy tld performance , I am relatively convinced that the pre overhead “ contribution “ for all tlds May be in the $11-12 MM region which extrapolates to a healthy valuation depending whether you apply a 10x or 15 x to it .
No didn’t discuss those items as perhaps would be viewed as inside info on dividend I guess .
Chaps,
just finished with Toby who "put me right" on the errors/mistaken assumptions in my recent post RNS posts. We agreed that anything we discussed would not make me an insider so we didn't go into too many details.
1) the quantum of the Chinese write off and exposure is not in the magnitude of that that I had indicated. And they are still pursuing esp as they have "ownership" over the underlying assets.
2) the Ramp in .VIP regs is "Real" and paid for in cash via the welcome and burgeoning relationship with GoDaddy who are known for clean straight business. He even pointed out that if I watch my prior hometown footy team the Wolves on Tv recently you will see their main sponsor is a betting company who prominently display a .VIP domain in their advertising. Pity I am a West Brom supporter.
3) AdultBlock has been a success but as we know partial year accounting treatment of revenue means that only a fraction of the "Billings" will be recognized in 2019 and AdultBlock operates on a post pay method from registrars (Icm tlds were always prepay) so that the actual (hopefully substantial) cash from AdultBlock sales is only just being collected now so won't show in the 2019 "cash figures".
4) we talked about the important number for the business being the revenue -COGS-partner payments, BEFORE OVERHEAD (which any industry acquirer would totally wipe out) and whilst we couldn't talk about exact numbers, I came away from the conversation with the belief that the numbers I had been propagating recently of $12M++ may not be too far off the mark. If you recall thats the number that on a right day can have a sizable multiple placed against it to vault the business value into the $180MM region with a following wind.
5) he reconfirmed that any endemic decline in the ICM portfolio has been stopped, that the Adultblock added means that is now growth (have given props all along for bringing that forwards) and that the overall prior 28TLD portfolio of TLDs are is growing in genuine registration terms and the geographic mix is constantly improving as is the renewal/new reg mix to replace the prior one off premium sales.
I have no problem admitting when I am wrong or indeed may have jumped the gun a little, which in this instance given the paucity and apparently almost mandatory vagueness of the update, I appears that I did.
Until the audit is complete apparently it is bad form to been seen to be encouraging a particular accounting treatment of a new product (adult block ) and the handling of any bad debt provision.
For the record I have not sold or purchased any shares for months nor encouraged /discouraged other to do so and I have no intention of trading any shares anytime soon either. I hope to be here until the end of the ride with a decent exit.
now where the Pepto Bismol.....??
If not on Dums ... split by per tld ... 4/32 , about the same and yes I do think only about 5% of time and resource spent on those 4 tlds
Molehill ,
cogs - cost of goods sold so no
Share over overhead yes ...
On a domains under management basis which it should be let’s say 100,000 adult domains out of 2,500,000 total domains ? That’s 4% of overhead :
4% of say $6MM overhead so that’s $250,000...
Fair enough
Yes enjoy your weekend