24 Feb 2015 07:00
For immediate release
24 February 2014
Minds + Machines Group Limited
("MMX", the "Company" or "Group")
Trading update and notice of results
The Board of Minds + Machines Group Limited (AIM:MMX), the publicly quoted owner and operator of Internet top-level domains ("gTLDs"), is pleased to provide an update on trading for the six-months ended 31 December 2014 (the "Period").
During the Period, eleven of the top-level domains in which the Group has a commercial interest went into General Availability. This is in addition to .kiwi, which entered General Availability in May 2014.
Total unaudited sales (excluding proceeds from the private auction of top-level domains) for the Period amounted to £2.9 million (US$4.9 million), of which £2.2 million (US$3.7 million) was in respect of the four month period from 1 September to 31 December 2014, when 10 of the Group's top-level domains went into General Availability. This represents an 883% per cent. increase over total unaudited sales for the six months ended 30 June 2014 ("First Half") of US$486,000 (£295,000) (as reported on 24 September 2014).
In addition, between 1 September and 31 December 31 2014, just over 107,000 domain names were registered within Minds + Machines' portfolio of top-level domains, of which approximately 10 per cent. were sold through the Group's wholly-owned registrar businesses.
In aggregate, during the year ended 31 December 2014, the Group generated gross proceeds of US$36 million (approximately £21.9 million) from the 21 private auctions where it elected to withdraw its applications and the Directors anticipate that the Group's profit on these top-level domain auctions for the year ended 31 December 2014 will be not less than US$33 million (equivalent to approximately £20 million).
Investments made by the Company to acquire the uncontested application rights of 6 top-level domains amounted to US$25.9 million (approximately £15.8 million) for the year.
Since the year-end the Company had 3 additional top-level domains enter General Availability - .casa, .work, and .yoga; 5 top-level domains which have entered Sunrise - .fashion, .fit, .garden, .nrw, and .wedding; 13 uncontested top-level domains which are due to launch on a rolling basis through 2015; and a remaining 12 contested top-level domain applications which the Directors anticipate will be resolved primarily through the private auction process during the first half of 2015.
Cash and cash equivalents within the Group at 31 December 2014 were US$45.8 million (approximately £29.5 million).
Fred Krueger, executive Chairman of Minds + Machines, commented:
"2014 was a landmark year as we transitioned into a fully functioning operating business. With operations now fully established in the US and Europe, and significant cash reserves, we are on a strong footing to continue monetizing the expansion of the Internet's root zone through our declared strategy of owning and operating top-level domains. As 2015 continues, we anticipate being able to capture greater wallet share, as well as drive consumer usage of new domain addresses, as a result of our registrar operations. Following the successful launches of .work and .casa earlier this month, we are also on track to successfully position our portfolio across the value curve of top level domains - from premium price, niche oriented gTLDs, through to low price high volume domains."
The Board plans to announce its audited consolidated accounts for the 12 months ended 31 December 2014 in the week commencing 18 May 2015.
Further Information:
Minds + Machines Group Limited
Antony Van Couvering Tel: +1 310 452-1491
Beaumont Cornish Limited (Nomad) Tel: +44 (0)20 7628 3396
Roland Cornish / Michael Cornish
N+1 Singer (Broker)
Shaun Dobson/Ben Wright Tel: +44 (0)20 7496 3000
gth media relations
Toby Hall Tel: +44(0)20 7822 7493 / +44 7713 341072
For further information, please go to http://investors.mindsandmachines.com
About Minds + MachinesMinds + Machines (LSE:MMX) is a leading owner and operator of new generic Top Level Domains ("gTLDs"), and provides registry services to a range of high-profile clients. The Group also provides domain name services to consumers through its wholly owned registrar operations in the US and Europe. For more information on Minds + Machines and its services and companies within the Group, please go to http://investors.mindsandmachines.com.
ENDS