CentralNic Group Plc (LON:CNIC) has revealed that revenue more than doubled in the twelve months ended December 31.
The internet domains firm’s financial results showed revenues up 113% to £22.12mln for the year, up from £10.39mln the year before.
Gross profit meanwhile rose by 58% to £7.66mln from £4.86mln, earnings (adjusted EBITDA) increased by 68% to £5.48mln from £2.95mln.
CentralNic reported a £1.15mln profit before tax, compared with a £297,000 loss in the preceding twelve month period, while net cashflow from operations amounted to £3.31mln versus an outflow of £2.36mln in 2015.
The financials were boosted by CentralNIC’s acquisition of domains rival Instra, which completed in January 2016, which delivered some £10.28mln of additional revenue and £2.21mln of earnings.
During the period the group’s wholesale unit was notably successful, increasing market share by 10 percentage points – to 32% of the market compared to 22% - and the business is now ranked as the ‘number one’ for new top level web domains by volume.
CentralNIC highlighted that in the current year it is anticipating increased revenue from domain renewals given that that for the wholesale unit the base of domains due to renew or expire in 2017 amounts to 9.89mln, compared with 3.39mln last year.
It highlighted that a number of new top level domains are due to be launched.
The company also noted that it continues to assess potential acquisition targets, and it has appointed Sarah Ryan as corporate development director to accelerate its business building process.
CentralNIC chairman, Mike Turner said: "The amount of change in the business is signiﬁcant, with activity levels high across each of our three divisions and with our mergers and acquisitions programme continuing to bring beneﬁts and present new and interesting opportunities to the group.
"With continued progress in all areas of our business, at this stage of the year we remain conﬁdent in the outlook for 2017."
He added: “In my first full year as Chairman of the CentralNic Group I have been pleased with the Group's strategic development.
“We now have a more diverse business active in the majority of the world's geographic markets, notably with expansion of our retail services following the acquisition of the Instra Group.
“This is important to the future of our business, not least in providing a strong and comprehensive retail capability in close geographic proximity to emerging domain name markets, notably in the Asia Pacific region.”
"Another significant development during 2016 was the increased adoption of domain names from the new Top Level Domain name programme.
“The new TLD programme is regarded as the biggest change in our industry for many years.
“It is particularly pleasing that, as a result of the first application round of new TLDs, CentralNic is contracted as registry service provider to some of the most successful new TLDs, including the leader by volume, .xyz.”