Internet domain specialist Minds + Machines PLC (LON:MMX) increased interim revenues by a fifth as the use of its names grew by 38%.
Registrations rose to 1.5 million with particularly strong growth in the US, though there has been a recent slow-down in high-value one-off sales that will affect top-line revenues.
Turnover in the half year to June rose 22% to US$6.4mln (H1 2017: US$5.3mln) including a US$250,000, two-week contribution from ICM, the owner of the .xxx, .adult, .porn and .sex domain names acquired in May.
Renewals revenue rose 40% to US$3.4mln, with the proportion of ICM’s recurring revenue especially high at 96%.
Provisions and write-offs
Operating profits rose to US$661,000 (US$238,000) but underneath was a string of provisions and bad debt write-offs that pushed the group overall into an interim loss of US$14.6mln (US$424,000).
“The treatment of certain historic contracts, most notably those inherited by current management, has been addressed enabling a much clearer picture of the company's ongoing progress to be presented in future periods,” said Toby Hall, chief executive.
Going forward, renewal revenues should surpass the group's full cost base within the next 24 months, while new domain-name launches in China and the launch of .luxe means he is cautiously optimistic over full-year underlying profits.