Centralnic Share Discussion Threads

[battlebus2] 23/2/2016 10:35

$4100and bidding, anyone??

[cheshire man] 23/2/2016 10:26

I was going to ask the same question bb so thanks for the link :-)

[saucepan] 23/2/2016 10:19

horneblower:



It is fun to watch on a daily basis, recent growth is phenomenal.

[horneblower] 23/2/2016 09:53

bb, where do you get the registration volume numbers from?

[eagle eye] 23/2/2016 08:51

Glasshalfull
Thanks for your MF link.
A flurry of early buys this morning....looks like it's been tipped somewhere.

[glasshalfull] 23/2/2016 08:07

Link to my post in August which provides more background surrounding the company.



Regards,
GHF

[glasshalfull] 23/2/2016 08:05

CNIC

Thought it worthwhile to provide some background from my notes in respect of CNICs Wholesale business arm. Think most of it was contained in a comprehensive write-up I provided in Aug 2015 if anyone cares to trawl back.

They have a distribution network comprising more than 1,500 retailers in 77 countries, who are connected to its platform. This includes the leader GoDaddy.

This network represents 85% of the global retail market.

My notes also indicated at the time that their client "xyz" was actively sold by 105 registrars globally, more than any other new gTLD.

CNIC's registry services business works through a fully automated proprietary registry engine. It comprises a database system to which registrars are connected and can query for domain availability when their own end-customers make a request.
If the domain name is available and the customer wishes to proceed with a purchase, it creates the domain name. The customer pays the registrar and CNIC receives its payment. This is commercially sensitive & I also wouldn't expect to see a % margin provided in respect of these transactions.

Peel Hunt commented in 2014 that,

"CNIC predominantly derives its revenue from a share of the sale of domains, as a percentage of revenue or as a fixed fee per domain. Fees are paid upfront and often for multi-year periods, to be renewed thereafter. The company retains all of the wholesale revenue from the sale of domains using its own portfolio of SLD suffixes, and a share of wholesale revenues when providing services to client registry operators.

Revenue from its registrar business is derived from the retail margin on domain sales (registrars set the price at which they sell domains). The revenue model also has strong cash-generative characteristics as fees are paid in advance and inventory does not exist until a domain name is registered. A number of CNIC's registrars maintain a credit balance with CNIC, which is automatically topped up."

One only has to review previous RNS results statements to get an indication of Wholesale revenues and profitability margins though.

H1 2015 - Wholesale

CentralNic's share of Wholesale revenues for the first half of 2015 was £1.6m, up 14% over the first half of the previous year (2014: £1.4m). EBITDA contribution was £0.6m (2014: £0.6m).

As I've previously mentioned, Wholesale is only one facet of their business, I'm far more excited by the Internet BS & INSTRA tie-up in Retail, while the Enterprise Division should hopefully be able to capitalise on a buoyant secondary market through its portfolio of 20k premium domain names.

I would however expectat their Wholesale arm to benefit from operational gearing as the volume of gTLDs rise...which they are now at a rate of knots!!!

My understanding FWIW. Hope this assists.

Kind regards,
GHF

[buffythebuffoon] 23/2/2016 00:04

horneblower,

Putting words in upper case may make you feel better, but they don't add anything to your point. People love to write that figures are commercially sensitive. I'm sure they very rarely think about what that actually means. Are you suggesting that in a market place where everybody knows what a domain name costs to buy, it would somehow be commercially disadvantageous for CNIC to give out an idea of their sales margin? Are you perhaps suggesting that the revelation that CNIC turned down $8m for a gTLD shouldn't have been made (by the CEO)?

For those delighting in the irony of CNIC having a .com address, are you aware that the $8m CNIC turned down was for US.com?

Buffy

[modform] 22/2/2016 23:43

The cost of. xyz is £9.99 for 2 years, strange enough you can get some premium domain like .site for 99p, more than 90% off. I took a small position on Friday, and I may add after I have seen the numbers.

[battlebus2] 22/2/2016 22:52

For goodness sake CFRO, I'm sure they will change the name at some point.

111.xyz 555.xyz and 999.xyz just sold only 777.xyz triple left. Just tweeted by @xyz

[cfro] 22/2/2016 22:42

The company may argue that it is commercially sensitive maybe, but i think the info is 'very' important for shareholders or potential shareholders to know.

PJ1, that is exactly what i want to know: are they all revenue generating or not?

I still cannot see why the company cannot give us simply an average figure.

...And why is it 'www.Centralnic.com' with the emphasis on the .com? I would have thought they would eat their own cooking.

Are Verisign laughing?

[horneblower] 22/2/2016 22:12

You are asking for commercially sensitive information.
A breakdown of income by sales is NOT what I expect ANY company to hand out, even as a normal 'trading update'.

The fact that we have the number of registrations day by day is considerably more info than most investors get or expect.

Get real.

[buffythebuffoon] 22/2/2016 18:43

I too am unhappy that the company doesn't say more about how much these sales are making. It's not the happiest situation where one has to resort to trusting forecasts from brokers/analysts.

Buffy

[pj 1] 22/2/2016 18:26

cfro

Ah, I got the wrong end of the stick then. I got hung up on the term 'registrations' and that a registration was maybe not necessarily Revenue generating (as it seems it is). Similar to registering to vote, but not actually voting etc etc :-//

I will try harder next time!!

[cfro] 22/2/2016 18:20

PJ1,

thanks for taking the time to get on to their PR.

Unfortunately it still does not answer the question i and others most want answering.

They say all the registrations are paying them and the percentage varies accordingly. I think we knew that much all along, however, a simple 'average' would be sufficient.

I want to know why they wont tell us this. I am eagerly awaiting the next results where i hope a figure will be given, but i wait with baited breath.....

Another problem i have is that .com is so much better known than .xyz. Just about everyone knows to simply add .com to anything they may be searching for even if they are unsure of the web address...

It is quite funny that if i put 'www.centralnic.com' in my web tool bar......

[mr dexy] 22/2/2016 16:12

I spy with my little eye...

Some old hands here i see... gla

Regards


Mr D

[horneblower] 22/2/2016 16:01

40k currently and will increase as soon as it shows any sign of rising above 53p as chart then suggests 100p+.

[pj 1] 22/2/2016 15:50

Following the posts over the last week or so, and after speaking with PR my understanding is that

All the 3million Registrations are each generating Revenue to CNIC. However, this is not a set % and varies by customer. Whilst PR would not confirm either way I assume xyz. will be the lowest (cheapest)

There are contracts in place with customers,with tie in periods, but again as expected no further details were given.

Nothing major but hope it helps to 'firm up' some of the comments previously.

Cheers pj

[brancho] 22/2/2016 15:48

HB,
faith in your predictions HB. Glad to see you've got skin in the game. 20k now?

[saucepan] 22/2/2016 15:29

Thanks,GHF; appreciated. That is encouraging feedback.

[glasshalfull] 22/2/2016 15:18

saucepan - for the avoidance of doubt, I picked up a 6-figure sum in the placing & added further throughout last week with another 30k picked up this morning. I'm not alone amongst the placees (if such a word exists ;-)

Think you may correct that some will have flipped shares but you'll observed that Kestrel who were a cornerstone investor from the placing & have also been progressively increasing

Personally I think news on the entire gTLD market has improved beyond my best estimates during the last 4-weeks that I've appraised my investment & believe an even better opportunity exists. I wouldn't be surprised if the shareprice is a multiple of today's in 18/24 months time so think we all just require a little patience to wash out stale holders.

This company is going to be a cash cow in coming years.

Peel Hunt indicate, net cash of £5.4m at end-2016 and £12.5m at end-2017.

I believe they'll show a small positive net cash balance for year just ended given timings involving the placing, acquisition and sale of the premium domain names.

Hope this assists.

Regards
GHF

[battlebus2] 22/2/2016 14:54

Currently 51 for 10k.....