2008 - Turnover and registrations rise at Ireland's top level domain

Download the IEDR 2008 Annual Report here

Highlights:

• .ie registrations up by 26.8% net
• .ie domain prices reduced by 20%
• Turnover increased by 7.4% to €2.5m
• Operating profit and interest income totalled €433,647
• ComReg public consultation completed; IEDR to be appointed as the authority authorised to register .ie domain names
• .ie maintained market share in 2008 compared to .com and .eu
• Q1 2008 .ie domain registrations reach 9,000 mark for first time
• Administration costs rise reflecting increased investment in technical services projects, advertising and promotion and ComReg's public consultation process
• After tax results include provision for financial investment impairment of 29%, reflecting fall in international market values

Thursday, 23rd July, 2009:
The IE Domain Registry (IEDR), the not-for-profit organisation that manages Ireland's top level internet domain, .ie, reports a strong core trading performance for 2008 with overall continued growth in .ie domain registration numbers, additional price reductions and further technical service improvements, notwithstanding more challenging trading conditions, particularly in the second half of the year.

The Core Trading Performance for 2008
2008 was a very satisfactory year for IEDR. Registration income increased by 7.4% to €2,516,880 despite a price reduction of 20% implemented in the New Year, the fifth consecutive reduction introduced by IEDR in as many years. New registration volumes showed strong growth of 37% (26.8% net), particularly in the first half of the year, resulting in 34,263 new .ie domain names in the year. The impact of the price reduction was offset by the registration growth in 2008, most notably in Q1 when registrations surpassed the 9,000 mark for the first time in a quarter.

The IEDR remained on a sound financial footing in 2008, achieving a core operating profit of €373,940 (€433,647 including interest income). Although IEDR reports an increase in registration revenue, profits for the year were 36% lower than 2007 owing to planned increased spend on technical services projects, advertising and promotional activity and staff training. Unplanned increases in legal fees and regulatory costs arising in part from IEDR's comprehensive response to ComReg's public consultation process also contributed to a reduction in profits. These factors collectively resulted in an increase in administration expenses for the year, which rose 33% from 2007 to €1.05m.

Nothwithstanding the robust performance of the Registry's core operational activities, like many companies reporting at this time, the Registry is not immune to the adverse effects of global recession and it became necessary for IEDR to record a write down during the year owing to the fall in the market value of the Registry's financial investments. Accordingly a provision amounting to €584,707 was recorded to reduce the financial investment to its market value of €1.4m.

Despite the provision, Members' Funds still totalled €1.8m at year end, ensuring the Registry remains financially well-resourced.

Current Trading & Outlook for 2009
In light of the global downturn and difficult trading conditions facing SMEs in particular, the company's current trading performance looks positive. Early indicators point to renewed registration growth, set to continue into the second half of 2009, offset somewhat by an increase in the non-renewal rate. Following a challenging second half in 2008, registration volumes increased again in Q1 2009, rising 28% compared to Q4 2008 with 9,781 .ie domains registered in Q1. The level of registrations in Q2 were broadly in line with the first quarter at 9,343 and in that period we passed the 125,000th .ie domain which is a significant milestone for the registry.

The Registry's sixth successive price reduction of 10% for resellers also took effect on 1 January and further promotional activities are planned for the remainder of the year to support the sales and marketing activities of the reseller community, which accounts for the majority of .ie domain registrations and renewals.

Commenting on the 2008 results, Mr. David Curtin, Chief Executive of the IEDR said;
"Results for 2008 show a strong core trading performance for IEDR with 26.8% growth in .ie registrations, offset by a significant price reduction of 20%, giving a net 7.4% increase in turnover for the year. The Registry remains on a sound financial footing with over €3 million in cash/investments which means that IEDR is in a position to further invest in new services and in infrastructural improvements for greater security, stability and resilience of the .ie namespace. As Ireland's leading domain name, .ie continues to perform well, maintaining market share in a maturing and competitive internet eco-system with total registrations having recently surpassed the 125,000th mark. The results for 2008 have provided the Registry with a solid platform for future growth, which the IEDR remains committed to delivering."

- Ends -

For reference, please contact Gibney Communications, 01 6610402
Contact: Niall Quinn Tel: 086-827 4829

Please find attached the IEDR's annual report in PDF format here.