Despite a continuing slowdown in new customer acquisition and slower growth in the existing customer base, UK-based domain name and Internet-related services provider Group NBT has reported that its half-year revenue for the period ending December 31, 2009 was £21.69 million ($32.6 million) -- up 13 percent from the same period last year.

Despite the slowdown, partly a result of higher levels of cancellations (some due to insolvencies particularly among smaller customers), the level of recurring revenue in the business remains high and this provides a stable platform on which to build, NBT reported Thursday. NBT saw a revenue growth was 8 percent on a constant currency basis.

While NBT's reseller business slowed, Envisional, the company's brand protection business showed tremendous growth. Envisional helps customers monitor for online infringements of their brands. Interest in this service is growing as companies increasingly come under attack in what is a lightly regulated market. In the second half of 2009, Envisional drew in £0.74 million, a 13 percent increase on the same period last year.

Corporate domain name services drew in £10.24 million in revenue for the period -- up 19 percent from last year, and 14 percent on a constant currency basis. Within this, revenue from NetNames Platinum Service was £6.75 million, up 15 percent on the same period last year, and continues to grow well, according to the company, despite current market conditions that have reduced the rate of growth of its customer base.

"Group NBT has once again performed well in the half year to 31 December 2009 with growth in key market segments and profits rising accordingly," Group NBT chief executive officer Geoff Wicks stated. "These results have been achieved even though market conditions have not improved, with decisions being delayed and sales taking longer than in previous years. Our products are a necessary part of being able to use the Internet for business purposes and by providing high levels of service we are able to keep and grow our customer base."

Within the domain names business, we enjoyed an exceptional performance from the unit which buys valuable names from third parties for our corporate customers. These are obviously one-off transactions, and we do not expect such a high level of activity in the second half.

Chairman John Parcell notes, however, that despite the positive performance reported in the second half, the economic recession is still having an effect on the company. "First, cancellation rates remain higher than before the economic storm," he stated. "Second, customers continue to delay decisions and sales are taking longer to finalise than previously, especially to completely new clients."

Despite that, Parcell said the company will endure. "Given our large recurring revenue base and forward visibility, we are confident of further growth in the second half, which has started well. We continue to benefit from the ongoing structural shift towards internet commerce, in which our services are essential business inputs."