Centralnic Sees 2014 Boost From New Internet Address Endings

Source: Dow Jones Newswire

25th September 2013 — LONDON -- Internet address registry services provider Centralnic Group PLC (CNIC.LN) expects its 2014 earnings to receive a boost from the proliferation of new Internet addresses starting later this year, its chief executive said Wednesday.

Ben Crawford told Dow Jones that Centralnic is guaranteed revenue from new Internet address endings because it has already signed contracts with companies applying for them. The amount of money Centralnic will makedepends on when each new address format starts and how popular it is, he added.

Starting later this year, companies can choose to have website address endings such as .fashion and .chat rather than the traditional .com and .gov--known as top level domains or TLDs.

Centralnic will assist companies such as the U.K. newspaper publisher Guardian News and Media, which has applied for the rights to .theguardian, and the Saudi Telecom company, which applied for .stc, with the management of these new TLDs.

Unlike other Internet address-focused companies such as Top Level Domain Holdings Ltd. and Donuts Inc., Centralnic provides services to companies seeking the rights to TLDs rather than holding any itself. However it does support "second level" domains such as uk.com and us.com, which are used as alternatives to the traditional country codes .co.uk and .com.

The company said it expects the first new TLDs it is assisting with to launch from the fourth quarter of this year. Of the 60 applications it is involved with, 14 are guaranteed to go ahead and seven have been rejected.

Some of Centralnic's clients intend to use the TLDs themselves while others plan to license them to third parties. Centralnic will receive additional revenue based on how popular such TLDs are to third parties.

The provider, which started trading on London's Stock Exchange earlier this month, earlier Wednesday reported a pretax profit of 636,000 pounds ($1 million) for the six months ended June 30, up from GBP232,000, on revenue that rose to GBP1.74 million from GBP1.5 million.

Shares at 1327 GMT, up a penny, or 1.4%, at 74 pence valuing the company at GBP43.1 million.