Melbourne IT looks to offload business units
Tough times for SME services
Battling disappointing trading results, Australian domain name custodian Melbourne IT is seeking buyers for some of its ailing business units.
The hosting house has also weathered a tough year on the security front, enduring a Privacy Commission investigation, following a hacking attack from Anonymous in August that targeted client AAPT and caused the loss of customer data.
In a statement to the ASX, Melbourne IT said that following a strategic review, the company would seek "ownership alternatives for its current portfolio of businesses."
Melbourne IT has appointed Lazard & King and Wood Mallesons as financial and legal advisers to conduct a formal strategic review to divest some of those struggling business units.
The company confirmed that it was looking at different ownership alternatives in relation to the lesser performing units with potential buyers being primarily large offshore organisations, who had previously indicated interest in potentially acquiring one or more divisions of Melbourne IT.
Melbourne IT revealed that aggressive competitor activity has adversely affected its SMB eBusiness Solutions segment while its government services division ForTheRecord (FTR) has been squeezed by pauses in US Federal and State Government spending.
The Digital Brand Services (DBS) division had to push back growth expectations due to delays in the rollout of ICANN’s new gTLD program. ®
"Battling disappointing trading results"...
Let's see why...
I just recently had my domains re-register automatically, so <digs into site management> they cost me AUD14 (USD15, EUR11) a year per domain for a .COM or .ORG domain name via an oversea registrar (you can probably get cheaper).
Looking at Melbourne IT, a .COM or .ORG is a staggering AUD76 (USD79, EUR61) per year, while a .COM.AU is AUD140 (USD146, EUR113) for two years (you can't change that) and a .ORG.AU is AUD44 (USD46, EUR35) for two years.
So unless I had a need of a .COM.AU rather than a .COM, why would I bother paying 4 times *more* for the same product?
All prices were rounded down for ease's sake.
Re: "Battling disappointing trading results"...
The Australia TAX...
Just like buying the same car in AU as opposed to USA/EU/Elsewhere?
> They have never adjusted to the fact that they are now in competition
Though that's true for much of australian retail.
Clark's school shoes anyone? Yours for a mere $114 AUD...