Growth drivers
Organic growth of the internet
As their customers get online, businesses need websites, email, ecommerce capabilities, etc.
Driven by telcos providing greater connectivity, cheaper access.
3 billion internet users, with focus on “the next 3 billion”
UN Sustainable Development Goal 9c: ”Provide universal and affordable access to the Internet in least developed countries by 2020.”
Mergers and acquisitions
Proven ability to source, complete and integrate acquisitions
Pipeline of attractive deals
Operational leverage through increased scale
Upsell and cross-sell
Domain name customers and resellers are typically also customers for other services
SMBs also use website hosting, email, SSL certificates, etc.
Corporations require outsourced domain portfolio management and online security services
Internet professionals require domain name trading tools
Emerging markets »
Domain names and associated services are paid for in advance
Economies of scale »
Fixed cost proprietary platforms which are highly scalable
Recurring revenues »
Services are provided on a recurring subscription basis
Growth strategy
CentralNic’s growth strategy is to act as the consolidator in a highly fragmented industry, acquiring and integrating highly cash-generative businesses, which have strong levels of recurring revenue and exposure to fast growing emerging markets, including China, Eastern Europe and Latin America. Migrating such businesses onto CentralNic’s proven, scalable, fixed-cost software and operating platforms, will allow us to combine state of the art, secure and resilient technical solutions with significant cost savings and build a business of significant size and scale with quality earnings.
Where other companies in our industry have succeeded in achieving billion dollar market capitalisations focused on the North American and European markets, CentralNic’s ambition is to become the largest scale company in its industry focused on emerging markets.
Core areas of strategic focus:
- realising cost synergies through the integration of back-end registry platforms to CentralNic’s platform;
- initiating cross-selling opportunities;
- implementing an effective business integration of shared corporate services;
- leveraging its platform by identifying selective value-accretive acquisitions.
Market opportunity
| Africa | Asia | Europe | LatAm / Carrib. | Middle East | North America | Oceania / Australia | World | |
|---|---|---|---|---|---|---|---|---|
| % of World population | 17% | 55% | 11% | 9% | 3% | 5% | 1% | 100% |
| Internet penetration | 35% | 48% | 85% | 67% | 65% | 95% | 69% | 54% |
| % Internet users | 11% | 49% | 17% | 11% | 4% | 8% | 1% | 100% |
 presence |