Melbourne IT bleeds $5 million

Melbourne IT bleeds $5 million

ASX listed domain name reseller, Melbourne IT, has recorded an after tax loss of $5 million following a failed investment in .biz domain registrar NeuLevel.

Directors took the decision to write down the value of Melbourne IT’s investment in NeuLevel from $7.9 million to $1.1 million following a review of the joint venture with US domain name company NeuStar.

The company said the joint venture did not perform to expectations.

Melbourne IT CEO, Theo Hnarakis, said that given the competition introduced during the deregulation of the Australian domain name market, the reseller had looked to its international presence with 60 per cent of total revenue now being export income.

“The high costs of the new registry fees introduced in July (2002) by the regulatory body auDA had a significant impact on out margins and cash flow,” he said.

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