Minds + Machines Group Limited Trading Update (2016O)
28 January 2019 - 6:00PM
UK Regulatory
TIDMMMX
RNS Number : 2016O
Minds + Machines Group Limited
28 January 2019
Embargoed until 07.00: 28 January 2019
Minds + Machines Group Limited
("MMX" or the "Company")
Trading Update
Minds + Machines Group Limited (AIM: MMX), the top-level domain
registry company, is pleased to provide the following trading
update for the year ended 31 December 2018.
During 2018 domains under management grew by 37% to over 1.81
million (31 December 2017: 1.32 million) with revenue, on an
unaudited basis, expected to be above $15.5 million for the full
year (2017: $14.3 million). With unaudited costs of sales in line
with 2017, and unaudited fixed overheads kept below $6.0 million,
the Company expects operating EBITDA, before the impairments taken
at the half year, to be marginally ahead of market
expectations.
Significantly, the quality of revenue has continued to improve.
Unaudited renewal revenue nearly doubled to $9.4 million in 2018
(2017: $4.8 million), helped by a $3.4 million H2 contribution from
the ICM portfolio with organic renewal growth within the MMX
portfolio of top-level domains (i.e. net of the ICM properties)
increasing by nearly 20% for the year.
The quality of new billings (i.e. sales) has also continued to
improve in the year with one-off brokered premium sales accounting
for less than 15% of total sales (2017: 38%) and premium sales
through the registrar channel remaining constant at around 12%.
Importantly, this improvement has led to cash collections for the
year on normal operations (i.e. net of private auctions/other
income) increasing by 30% to $16.1 million (2017: $12.3 million) of
which ICM H2 collections represented $3.3 million.
For the first time, the US also established itself as the
leading sales region in the year with sales generated through the
US team covering the North American and Japanese markets accounting
for the majority (51%) of Group sales in the year, compared to 33%
in 2017. By contrast, China and Europe represented 36% and 13%
respectively in 2018 compared to 50% and 17% the previous year.
Cash and cash equivalents were $10.4 million (2017: $18.1
million, including $2.2 million of restricted cash) at the year-end
as a result of the ICM acquisition. As at 25 January 2019, cash has
improved to $11.4 million, helped by the resolution of the .cpa
contention set, allowing the Company to begin the early repayment
of the London & Capital loan facility with an initial payment
of $700,000 being made in January 2019.
Toby Hall, CEO of MMX, commented:
"A strong Q4 of sales through the registrar channel is allowing
management to deliver on its strategy of transforming MMX into a
stable, growing, cash generative business built around organic
growth, innovation and accretive acquisitions. Pleasingly, the
significant momentum we created last year has continued into the
early part of 2019 supported by the strategic acquisition of ICM
which is delivering to plan."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
*- ends - *
For further information:
For further information
Minds + Machines Group Limited
Toby Hall, CEO Tel: +44 (0) 7713
341072
Michael Salazar, CFO Tel: +1 (310) 740
7499
finnCap Ltd Tel:+ 44 (0) 20
7220 0500
Corporate finance - Stuart Andrews /Carl
Holmes/Simon Hicks
Corporate broking - Tim Redfern / Richard
Chambers
Belvedere Communications Limited Tel: +44 (0) 74
070 23147
John West
Llew Angus
About MMX
Minds + Machines Group Limited (LSE: MMX) is the owner of a
world class portfolio of 32 ICANN approved top-level domains
(gTLDs). The Company generates revenues through the registration
and annual renewal of names by organisations and individuals within
each of its top-level domains, sales being processed through the
Group's network of global registrar and distribution partners.
The MMX portfolio is currently focused around generic names
(e.g. .work, .vip), consumer interest (e.g. .fashion, .wedding),
lifestyle (e.g. .fit, .surf, .yoga), professional occupations (e.g.
.law), and geographic domains (e.g. .london, .boston, .miami,
.bayern). In 2018, the Company completed its first acquisition, the
ICM portfolio, and recently launched its first innovation based
project, .luxe, which combines the strengths of the World Wide
Web's naming system with that of blockchain. For more information
on MMX and its rapidly growing renewal base, please visit
www.mmx.co
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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