Business
Trading and Strategic Update
Trading and Strategic Update.
About this update from Team Internet Group Plc
[{"type":"text","content":"\n \nRNS Number : 6774Y CentralNic Group PLC 07 March 2017 \n\n \n \n \n\n\n\n\nPress Release\n\n\n7 March, 2017\n\n\n\n\n \nCentralNic Group plc\n \n(\"CentralNic\" or the \"Company\" or the \"Group\")\n \nTrading and Strategic Update \n \nCentralNic Group plc (AIM: CNIC), the internet platform business which derives revenues from the global sale of domain names and associated services, provides the following Trading and Strategic Update. The 2016 trading performance in this statement is based on unaudited initial management estimates. \n \n2016 Trading Update\nIn 2016 the Company continued to grow while increasing recurring revenues: \n· Group Revenue increased by more than 110% to £22.1 million (2015: £10.4 million) \n· Recurring/subscription revenues1 increased to circa 80% of overall revenues (2015: 67%) \n· Adjusted EBITDA2 increased by over 65% to £5.5 million (2015: £3.3 million) \n· Net Cash at the end of the year was £7.3 million \n \n1 Recurring / subscription revenues include revenues from domain registration, domain renewals and other recurring revenues. \n \n2 Earnings before interest, tax, depreciation, amortisation, acquisition and non-recurring fees and non-cash charges. \n \n2017 Current Trading\nThe Board is confident in meeting market expectations for the 2017 year:\n· Trading at this early stage of the year is in line with plan, and business development initiatives are advancing \n \n· The Group has good exposure to the new TLDs - the fastest-growing category of domain names. The total number of domains using new TLDs rose from 11 million at the beginning of 2016 to over 27 million by the beginning of 2017. CentralNic is the number one new TLD service provider with market share by volume currently around 32% (2015: 20%) \n \n· Increased renewal revenues from new TLDs are expected in 2017, as the base of domains due to renew or expire has increased to almost 10 million domains in the wholesale business (2016: 3.3 million) and circa 1.3 million in the retail business (2016: 0.7 million) \n \n· The Chi...