IEDR turnover up, but profits hit by recession

23 Jul 2009

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Ireland’s .ie domain registry has reported a 7.4pc increase in turnover to €2.5m driven by a marked increase in registrations. However, investments taken out by the IE Domain Registry (IEDR) were hit by the recession, resulting in a €222,493 loss.

Describing the 2008 financial year has ‘satisfactory’, IEDR chief executive David Curtin (pictured) said the organisation achieved a €373,940 operating profit.

However, investments made in a number of funds through €2m worth of surplus funds from previous year were hit by the global financial crisis and the IEDR recorded a financial investment impairment of €584,707. “We regard these as long-term investments and in time believe they will redeem their value,” Curtin told siliconrepublic.com.

A domain name price reduction of 20pc played a key role in driving registration volumes, which were up 37pc, particularly in the first half of the year. The impact of the price reduction was offset by registration growth in 2008, particularly in Q1 when registrations surpassed the 9,000 mark for the first time in a quarter.

In its outlook for 2009, despite the global downturn and difficult trading conditions for SMEs in particular, the IEDR said its performance for the year looks set to be positive.

Curtin pointed to early indicators such as strong registration growth. In Q1 alone, he said, volumes rose 28pc to 9,343 compared with the same quarter in 2008. This brought total .ie registrations to 125,0000.

The IEDR initiated a further 10pc price reduction for resellers in January and further efforts to support the sales and marketing efforts of resellers are planned for the rest of the year.

“The Registry remains on a sound financial footing with over €3m 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,” Curtin said.

By John Kennedy

Pictured: IEDR chief executive David Curtin

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com