The IE Domain Registry (IEDR), the not-for-profit public organisation that manages Ireland’s top level Internet domain, .ie, today reported a continued strong core trading performance for 2011 with overall continued growth in .ie domain registration numbers, that will enable the IEDR to further consolidate the safety, stability and security of Ireland’s top level domain and continue to provide resources to encourage Irish SMEs and micro enterprises to register .ie domains.
Among the financial and operational highlights for 2011 were:
- New .ie domain registrations up 8%
- Total .ie domains13% increase year-on-year
- Registration fee income up 3.8%
- Registry operating costs up by 6.75%
- Increased .ie market share to 42.8% (compared to .com and .eu) – (41.5% in 2010)
- Decrease in non renewal (deletion) rate from 14% (2010) to 12.8% (2011)
Performance and operating activities for 2011:
IEDR performed strongly in 2011 despite poor economic conditions in Ireland. Registration revenue showed a 3.8% increase on 2010, reflecting volume growth of 25.7%, offset by price reductions and price promotions.
IEDR recorded an operating profit, ensuring that the Registry remains financially well-resourced and in a strong position to invest further in the development of Ireland’s top level domain.
New .ie registrations during the year represent an increase of 7.7% when compared to 2010, but were offset by non-renewals (deletions), resulting in a net addition to the .ie database of 12.9% increase in the .ie namespace domains by the end of 2011. The growth in .ie domain registrations was generated almost totally by the efforts of IEDR’s Registrar community and reflects a maturing Internet ecosystem. At 38 domains per 1,000 of the population .ie is comparable to other ccTLDs such as France and Italy. The .ie non-renewal (deletion) rate of 12.8% reflects the shortening domain life cycle, as domain names are increasingly used for specific promotional events and information programmes on .ie websites, nevertheless this non-renewal rate remains low by international standards.
Outlook for 2012
New registration growth in the first half of 2012 is down by 14% compared to the same period in 2011. This reflects a European-wide slowdown and ongoing difficult trading conditions in the Irish economy, in particular for the SME retail community. Nevertheless, the Irish Internet ecosystem continues to evolve and the company’s current trading performance is positive, as costs remain under control. The company continues to take the lead in the rollout of secure DNS (DNSSEC) and on the international front; continuing to monitor the US-based ICANN’s decision to significantly expand the DNS by adding potentially 1,400 new generic top level domains (gTLDs). In common with brand managers and trademark holders, the company is refining its strategic response to these developments. IEDR has continued its support to the Irish Internet community by extending the OPTIMISE Fund in 2012.
Commenting on the 2011 results, Mr. David Curtin, Chief Executive of the IEDR said;
“The past year has been an extremely difficult one for the Irish economy so we are particularly pleased to have been in a position to grow registrations, provide new promotional resources and formalise policy development programmes, while generating operating profit for the Registry. This has further strengthened our balance sheet and will enable us to increase investment in the .ie domain by providing new services and DNS infrastructural improvements that will deliver even greater security, stability and resilience for the .ie namespace.
Looking ahead to the remainder of 2012, the economic difficulties facing SMEs will continue to have an impact on registration and non-renewal levels. However, underlying demand remains and we are committed to supporting our Registrar community with both generic and specific promotional activities, such as co-funded promotions and the launch of our €100,000 OPTIMISE Fund for 2012, to ensure that the .ie namespace remains the domain of choice for Irish micro-enterprises and SMEs.
It is not clear why so many thousands of small businesses in Ireland remain effectively offline. Anecdotal evidence suggests: a perceived complexity and cost, the level of time commitment required, a reluctance to engage with multiple software vendors, and/or an absence of obvious business benefits. Further research is needed to guide policymakers on how to improve Internet usage and uptake in the small business community. In the meantime, the company will continue to work with its partners and stakeholders to help digitise the nation, especially the small business community and ensure that the benefits of the website and e-commerce virtuous circle continue to flow.”