Nothing but losses ahead for MMX | Domain Incite
Former new gTLD registry MMX has delivered its latest set of financial results and warned that, without any operating business, it will be loss-making for the foreseeable future.
The company today reported a first-half loss of $783,000, compared to a loss of $1.25 million in the year-ago period.
That’s calculated from its ongoing operations, which since the $120 million sale of its registry business to GoDaddy comprises no revenue-generating activities but substantial costs keeping the company running and maintaining its listing on the AIM stock market.
Profit from discontinued operations was $3.38 million, compared to $2.68 million.
It still has small “RSP” business, providing non-technical back-office management services to a few former gTLD partners, but this will be wound down or sold off.
CEO Tony Farrow said in a statement:
We are now in the process of delivering the transition services agreed with GoDaddy Registry and disposing of, or otherwise winding down, our RSP Business. Whilst the transition services are being provided on a cost recovery basis, the Company’s ongoing administrative and other public company costs will result in operating losses for the Group going forward.
When the winding down of existing businesses is done, MMX will look for acquisition opportunities or act as a vessel for a reverse takeover.
It’s currently returning $80 million of its GoDaddy cash to investors with a buyback, but this is not enough to clear all of its shares.