# CentralNic Group Sale of premium domain names for US$3.4m

- Link: https://www.directorstalkinterviews.com/centralnic-group-sale-premium-domain-names-us3-4m/412739414
- Published: 2017-11-07T10:43:31+00:00
- Author: Giles Arbor

**CentralNic Group Plc** ([LON:CNIC](https://www.directorstalkinterviews.com/company/centralnic-group-plc/cnic.l))
has [announced](https://www.directorstalkinterviews.com/centralnic-group-plc-premium-domain-name-sales/412739387)
that it has entered into an agreement to sell a number of premium domain names for
a total consideration of US$3.4m in cash. The proceeds will be used to accelerate
growth within the Group, as the business continues to focus on growing the recurring
revenue base.

**Premium domain sales confirmed.** As flagged at the H1 results, we were expecting
the sale of premium domain names within the domain trading business of the Enterprise
division to occur within H2 and today’s announcement confirms this. The contribution
of the sales was in-line with our forecasts and therefore we expect no further premium
domain sales this year. Encouragingly, the contribution from premium domain sales
is reducing YoY and the company expects this trend to continue, with sales contributing
a decreasing proportion of the overall revenue next year.

**Valuation.** CentralNic is trading on an EV/EBITDA of 10.6x to Dec 17 dropping
to just 8.2x in Dec 18, and P/E of 12.7x. Given the strong operating cash flow characteristics,
impressive track record being built by management via successful acquisitions and
the continuing diversification of the business, we feel the shares offer investors
a value opportunity given the industry backdrop, where CentralNic’s listed peers
are typically capitalised in the billions of dollars

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