Minds + Machines 2020 revenues fall, new year even lower

Internet domain name registry company Minds + Machines reported revenue of $16.83m (£11.84m) in its final results on Tuesday, down from $17.23m in the prior year.

The AIM-traded firm said its EBITDA fell to $4.16m for the year ended 31 December, from $4.81m in 2019, while its profit before tax was broadly in line at $2.99m, compared to $2.98m.

Earnings per share came in at 33 US cents, up from 31 cents a year earlier.

Cash generated from operating activities increased to $6.4m, from $0.48m in 2019, while cash balances at year-end totalled $8.9m, an increase of $2.3m over the end of 2019, even after buying back 43 million shares during the year at a cost of $2.8m.

“Our results for 2020 continue to demonstrate the quality of our portfolio and the cash generative nature of the company,” said chief executive officer Tony Farrow.

“The fourth quarter was a transitional period for the company as, in addition to immediate actions such as reducing staffing and terminating non-accretive supplier contracts, we considered structural and operational changes that we believe sustainably improve the business going forward.”

Farrow said revenues for the first quarter of 2021 were 4% lower than the same time in 2020.

“While it is early in the AdultBlock Sunrise B renewal period, we are encouraged by registrar interest and some early sales of this product,” he said.

“We are also seeing an increase in cash generation despite the decrease in revenues as the staffing changes and other cost reduction initiatives put in place at the end of 2020 resulted in EBITDA of $1.6m for the quarter, a 98% increase over the $0.8m generated in the first quarter of 2020.

“We continue to work closely with GoDaddy Registry to complete the conditions precedent to the completion of the sale transaction whilst continuing to drive the business forward to maximise near term cash flows.”

At 1247 BST, shares in Minds + Machines Group were down 1.23% at 7.21p.