IEDR profits down slightly as prices fall

15-05-2006

by Maxim Kelly

IE Domain Registry, which doles out the dot-ie internet address, announced profits marginally below last year's on Monday.

The audited accounts for 2005 show a profit of EUR865,000 for the year, just EUR15,000 below the figure filed in December 2004. Turnover at IEDR grew by nearly 6 percent to EUR2.4 million, while new registrations of dot-ie (.ie) domain names were up a substantial 37 percent.

The company said tighter control of operational costs was offset by increased spending on infrastructure and customer service improvements. Prices have fallen by 40 percent over the past three years and IEDR has cut a quarter of its staff over the same period.

In a statement issued by IEDR, the company claimed its performance enabled it to reduce its registration and renewal charges for customers by 20 percent. This translates as a 26 percent reduction for dot-ie resellers. IEDR chief executive David Curtin told ENN that the new automation of registrations will cut costs further for re-sellers.

"If we're seeing a 36 percent increase in volume due to automation then the re-seller doesn't have to hire an extra 36 percent of people to cater for that business," he said, adding that the firm now "builds" domain names twice a day rather than only once.

IEDR announced current trading was "excellent", though profits would be affected by the price reductions.

"Robust financial performance has enabled us to reinvest our financial resources in customer service and infrastructure improvements to deliver improved value, choice, service and security to our customers, further developing the dot-ie domain space," said Curtain.

Registration income increased by 6 percent compared to 2004 due to registration volume growth of 37 percent. In 2005 the registrar sold 37,000 domain names to companies -- up 23 percent from 2004. It sold 8,700 registrations to sole traders -- up 50 percent on the previous year. Figures for unincorporated associations, statutory bodies, educational institutions and individuals were all up on 2004 figures.

The rapid growth of dot-ie domain names brings the total number of registrations up to 60,000 as of May 2006. With this figure IEDR claims more than 46 percent of the Irish domain name market and forecasts strong growth in 2006.

Curtain told ENN that he does not expect the new dot-eu registrations to affect business in 2006. "People who register dot-eu more than likely already have a dot-ie domain. Dot-eu is aimed at competing with the free-for-all that is dot-com." He added that IEDR's registration renewal rate of 90 percent was strong compared to international standards, and that broadband was good for business.

"Small businesses are now setting up proper websites -- not just online postcards -- once they see what they can do with broadband. The 24 percent increase we've seen of educational organisations registering domain names is also encouraging as more schools are getting broadband," he added.