IE Domain Registry t/a .IE

The directors present their report and the financial statements for the financial year ended 31 December 2020. Principal Activity The company was incorporated on 16 November 1999 and commenced to trade on 1 July 2000. The principal activity of the company is the registry for .ie Internet domain names. Results and Dividends The profit for the financial year, after providing for depreciation, taxation and the unrealised gains on financial investment amounted to €419,415 (2019 – €231,438). No dividends are payable as the company is limited by guarantee and does not have a share capital. Business Review Turnover increased by 4.7% to €3.77 million (2019 – €3.61 million). Volume growth in domains was again very strong in 2020, with year-on-year new registration growth increasing by 29.8%. This growth is attributed to the digital transformation accelerated by the Covid-19 pandemic, as consumers shifted their spending to digital platforms and businesses pivoted quickly to provide online services to their customers. The volume growth was processed by the company’s contracted accredited registrars who are selected by individual domain holders to manage .ie domains on their behalf, and provide other services such as hosting and email management. When non-renewals are considered, the net growth of the .ie namespace was 59.1% higher than the net growth in 2019. Administrative expenses decreased by 2.3% from €3.52 million to €3.44 million. As a consequence of the Covid-19 restrictions the company was forced to suspend a series of promotion, marketing and customer service initiatives, including its Digital Town programme. These initiatives were designed to meet the strategic objectives and priorities of expansion and protection of the .ie namespace. As a result, marketing and promotion expenditures decreased by 23% compared to 2019 – when its strategic development fund financed the successful e-commerce website OPTIMISE program for SMEs, financed publications backed by robust independent research, and financed the celebration of Ireland’s Digital Town, Gorey, Co. Wexford, in recognition of Ireland’s Internet Day. These reductions were offset by the cost of a .IE rebranding project. In 2020, the company continued to support its registrars with its joint promotion initiatives to grow and develop the .ie namespace. Employment costs increased by 12.9% in 2020 to €1.84 million reflecting cost of living salary increases and additional staff recruited in 2020 to support the development and customisation of the new TITAN registry management platform. In March 2020, the company ceased to provide a direct registration service to the public. A fair and transparent process, which was validated by its multi-stakeholder community, was used to select an accredited registrar to take over the management of the .ie domains. The proceeds of this exercise are included in other income. In 2020, the company signed a licence agreement to use a domain registry management platform developed and used by .ca, the Canadian Internet Registration Authority. The platform was customised to meet the needs of the .ie managed registry, GDPR requirements and ‘Connection to Ireland’ processes. The customisation costs incurred on the TITAN registry management platform were capitalised as intangible assets and will be amortised over the term of the license agreement. As part of the implementation project, the company refined its operational processes to align more closely with industry-standard technical operations in other internet namespaces, including protocols such as EPP and domain lifecycle. This investment, together with the related infrastructure investments, were timely as .IE continues to experience sustained growth following the liberalisation policy initiative in 2018, which made it easier and faster for individuals and organisations to register a .ie domain. This move to the modern and powerful registry management platform, TITAN, which has greater functionality and flexibility, will ensure that our technical systems can support .IE’s long-term growth. The new .IE registry platform is an investment in the next decade. The deferred revenue on the balance sheet increased by 11.5% in 2020, to €2.80 million (2019 – €2.51 million). This is because the invoiced value of registration fees increased by 9.9%, reflecting renewals and new growth in 2020. The financial position of the company at 31 December 2020 is solid with Members’ Funds of €4.56 million. The market value of financial investments at 31 December 2020 is €4.42 million (2019 – €4.33 million), up by €0.09 million in 2020. Financial Statements IE Domain Registry CLG t/a .IE / Annual Report & Review 2020 37 Directors’ Report for the financial year ended 31 December 2020