Tradies without websites help Dreamscape post record results
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Dreamscape Networks, the owner of popular domain name website Crazy Domains, has posted strong results in its first yearly report to the ASX.
And the company says part of that is because Australian small businesses have been slow to embrace the web — particularly in the trade and logistics sectors.
Dreamscape (ASX:DN8) posted its first annual report to the market on Wednesday showing growth in all three areas — domain names, website hosting, and “solutions” which are add-on services like Xero integration and search engine optimisation.
The top line was that net profit was up 91 per cent to $2.1 million.
Despite the strong results, shares dipped slightly in morning trade to 21c at 11am AEST. The company listed in December last year after a $25 million initial public offering at 25c per share.
Managing director Mark Evans told Stockhead that Dreamscape had been targeting Australian SMBs without an online presence to keep its domain business performing well.
“There’s actually 61 per cent of Australian SMBs that don’t have an online presence at all,” he said.
“It’s hard to fathom. If you’re not online these days you’re invisible, so there’s still way a way to go for digital transformation in Australia.
“Most of the people that aren’t online are tradies, carpenters, plumbers, builders, to logistics and warehousing.”
From domain names to hosting
The other big area of growth for Dreamscape has been moving into website hosting, which is a natural fit given that registering registering a domain name is the first step to having a website.
In fact hosting was the fastest growing area of the business, up 13 per cent.
Mr Evans said most of the growth in hosting had come from selling to existing customers with a message to “keep everything in one place”.
Dreamscape has about 1.6 million members it can market additional services to.
Since listing on the ASX, Dreamscape has acquired two companies, both in the hosting space. The first was Australian company Net Logistics, and the second Vodien Group in Singapore.
Dreamscape’s other big focus at the moment is South East Asia, particularly Singapore, Hong Kong, Malaysia, Indonesia and the Philippines.
“There are millions of small businesses in South East Asia that don’t have an online presence. They’re even further behind in terms of digital transformation,” Mr Evans said.