After doubling H2 17 billings versus H1 17, Management announced its "first year of profitability".
Companies: Minds + Machines Group Limited
Top-level domain (TLD) owners Minds + Machines Group (LON: MMX) shares have spiked this morning after the Group provided a Trading Update announcing its first year of profitability.
Domains under the Group's management in FY17 grew 67% to more than 1.32m while billings in H2 more than doubled to $10m compared with H1 17. With a total of $15.6m in Billings for the full year Management announced it had achieved "its first year of profitability as an operating business".
The update went on to say...
"As a result, with billings in line with market expectations, the Company expects EBITDA to be slightly ahead of market expectations, with profit being further boosted by $2.1 million through monies received by the Company from two contested TLD auctions that took place during 2017."
Its balance sheet also remains strong, growing to $15.9m (FY16 year-end $15.3m) despite "settling $3.1 million of balance sheet liabilities".
The update sent the stock soaring; up over 22% to 10p in Thursday morning trading.
CEO of MMX Toby Hall was understandably pleased with the results...
"To have transformed the Company from a loss-making business to a profitable one on an ongoing basis within 24 months is an achievement the whole team should be proud of. 2018 has started positively and I look forward to updating shareholders in April with our strategy for building on this profitable platform and delivering value to shareholders."
The Group is paving the way for Western domain registrars in China, who account for over half of all the world's domain registrations. The Group announced in October last year it had become the first Western registrar to receive second-round approvals from the Chinese government.