---ADDS BROKER COMMENT AND SHARE PRICE---
September is set to be a busy month for Minds + Machines (LON:MMX), as several of its top level Internet domains become more widely available.
The following new generic top level domains (gTLDs) in which Minds + Machines has an interest will go on general availability (GA) to the public on the following launch dates in September: 9th - .london ; 15th - .cooking, .country, .fishing, .horse, .rodeo, .vodka ; 25th - .beer, .surf ; 30th - .bayern .
Up till those launch dates, the domains – the bits after the final dot in a web address – have only been available to priority candidates, such as trademark owners.
“As already seen across the new gTLD programme to date, moving into General Availability marks day one of the real registration drive for a domain. This is when registrars can begin to market, and consumers start to buy the names of their choice, without the delays and uncertainties associated with applications made before GA opens,” explained Fred Krueger, executive chairman of Minds + Machines.
On entering GA, all domain names applied for to date will start being registered and issued to applicants where there is no competing application for the same name.
Where there are multiple applications for a domain name, applicants will be invited to participate in an auction for that domain name. The Minds + Machines board anticipates that around one quarter of applications are likely to go to auction.
The onset of GA will also see domain names being sold to the public through Minds + Machines' network of ICANN-accredited registrars on a first-come, first-served basis, as well as through the company's wholly-owned registrar.
Minds + Machines is both a registrar – a company that deals with web site name applications – and a register – a company that provides services to registrars.
Regarding the latter, the group has continued to expand the number of registrars through which addresses in its domain portfolio can be retailed to the public. Registry-Registrar Agreements have now been signed with over 70 ICANN-accredited registrars across Europe, Asia and US including the world's four leading registrars: 1&1, GoDaddy, Host Europe, and Tucows.
The company revealed that its Premium Pricing strategy has been accepted by registrars whereby the registry ranks the wholesale price of a name based on its perceived value.
“As registrations grow within a domain, the key indicator will be the actual value of the domains sold when compared to the standard US$7.85 paid each year to VeriSign by registrars for an address in .com, and not just the top-line number of domains registered in a new gTLD," Krueger said.
Company chief executive, Antony Van Couvering, said the Premium Pricing policy will “help reduce domain name speculation and allow the registry - and registrars - to capture a greater percentage of the value of generic addresses over the long-term."
As for its own registrar offering, the company said the bill for additional software development and software services to be added to the group’s registrar platform is expected to come to around £840,000.
As revealed in March, the work is being done by web tools developer Needly; Minds + Machines expects the development work will be completed by October of this year.
Minds + Machines revealed on Thursday it has the option to hire certain employees of Needly and to offer and distribute any of Needly's current and future products and services. The AIM-listed company has full ownership of any intellectual property rights in respect of the development of its registrar platform.
Effectively, Minds + Machines is bringing the development functions in-house.
“This is a comprehensive update provided by the group as it enters a very exciting operational/ revenue-generating phase. We continue to believe its portfolio of domain names is highly valuable and that the business model (one of long-term annuity revenues and high margins) is highly attractive,” said broker N+1 Singer.
“Strong execution on its different business strands (registry, registrar, and registry service provider), aided by a strong balance sheet, should drive the value of the group in excess of the current market capitalisation given the portfolio’s potential to generate significant levels of profit and cash in the future,” it added.
Shares in Minds + Machines rose to 11.52p in the morning session from 11.13p overnight.