26 Jul 2017 07:00
For immediate release: 07.00 26 July 2017
Minds + Machines Group Limited
("MMX" or the "Company")
Company Update: China and Strategic Review
Further to the announcement of 7 June 2017, Minds + Machines Group Limited (AIM: MMX), one of the world's leading owners and operators of Internet Top-Level Domains ("gTLDs"), is pleased to announce that first year renewal rates for the first month of registrations within its .vip domain in China have surpassed 75%, with over 317,000 registrations renewed.
This places .vip in-line with the best-in-class renewal rates of leading established Western facing top-level domains. Separately, MMX continues to make good progress on securing MIIT (Chinese regulator) approval on up to a further eight extensions for potential future release in China.
Toby Hall, CEO of MMX, commented:
"The successful launch of .vip, and associated one-off premium sales revenue in H1 2016, played an integral part in MMX's turnaround last year. It is therefore encouraging to see those sales now transition into meaningful first year renewals. This both validates our premium pricing model and demonstrates the underlying robustness of the Chinese domain market when appropriate roll-out strategies are executed that are not reliant on aggressive discounting tactics.
"The strong renewal rates, as well as new registrations that have grown by over 45% in H1, also bode well for our premium revenues from China in H2 as we now begin releasing our 2017 .vip premium inventory to the broader market for the first time, off the back of the published first year renewal rates.
"However, whilst the holding back of material premium inventory in China, and no scheduled new domain launch in the period, will mean H1 2017 sales will not repeat the quantum of H1 2016, the quality and make-up of the revenue is significantly improved. This gives the Board confidence that the Company is on track to achieve a key benchmark where recurring revenues from renewals should be equal to or greater than fixed overheads - earlier than anticipated, and within the current financial year.
"The Board likewise looks forward to the wider initiatives currently being implemented in the US and Europe, including the launch of .boston, impacting in H2."
Strategic Review and Publication Date of Interims
The strategic review is progressing well with discussions ongoing with a number of interested parties from Asia, North America and Europe. A further update on progress will be provided when the Company announces its results for the six months ended 30th June 2017 towards the end of September. A further announcement providing the exact date of the results will be made in due course.
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The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014
About MMX
Minds + Machines Group Limited (LSE: MMX) is the owner and operator of a world class portfolio of top-level domain assets (gTLDs). As a sales and marketing-led registry business, we are focused on commercializing our portfolio in partnership with our expanding global network of distribution partners.
The MMX portfolio is currently focused around geographic domains (e.g. .london, .boston, .miami, .bayern), professional occupations (e.g. .law, .abogado, and .dds), consumer interests (e.g. .fashion, .wedding, .vip), lifestyle (e.g. .fit, .surf, .yoga), outdoor activities (e.g..fishing, .garden, .horse) and generic names such as .work and .casa. As a business, we work through our expanding international network of registrars and distribution partners to bring the benefits of affinity based domain addresses to B2B and consumer audiences. For more information on MMX, please visit www.mmx.co