IE-Annual-Report-2023

Turnover decreased by €95k (2%) to €4.21 million (2022 – €4.31 million). The Company actively decided not to increase its prices immediately in response to surging inflation and interest rates, arising from war in Europe in 2022 and post-pandemic supply chains issues. Prices will be increased later in 2024 as domestic market conditions improve for channel partners (Chart 4). The deferred income on the balance sheet increased by 2.2% in 2023, to €3.05 million (2022 – €2.99 million). This represents the future service obligation to provide registration service in respect of domains paid for in advance by customers. New registrations are an indication of the digital intentions of business, individuals and entrepreneurs. Statistical agencies, including the Central Bank classify new domains as a forward economic indicator of digital activity. We commend our accredited Registrar community for their ongoing marketing and customer activities. Contributing to national cybersecurity efforts Again in 2023, there was a global increase in cyber- attacks, phishing and online fraud. The technical services team continues to protect the national DNS infrastructure against ongoing and new external cybersecurity threats, in particular in the face of the continuing global increase in ransomware, malware and DDoS attacks. The Company continues to make a positive contribution to the safety, security and resilience of our national critical Internet infrastructure. The data escrow function continued to operate, whereby relevant data sets within the .ie database are extracted, encrypted and transmitted to a third- party, to be held in safekeeping and only released to appropriate authorities in the unlikely event of a catastrophic event occurring at the registry. This added layer of resilience, reliability and protection provides business continuity and peace of mind for Government, regulators and stakeholders. EU Regulatory impact In response to the ongoing level of cyber threats, the EU regulatory authorities have intensified their reach into the domain market, beyond data privacy into cybersecurity. The objective is harmonisation of cyber defences across Europe. It is clear that .IE will need to allocate increased resources and attention to manage the disruption and cost impact of a rapidly expanding regulatory regime, particularly with NIS2 and CER. During 2023, the substantive work of the .IE Policy Advisory Committee focused on understanding the implications of identity verification regulations under Article 28 proposals within the NIS2 Directive, and the cybersecurity obligations of supply chain management. During 2023, there was no substantive progress on the Company’s application to ICANN for the transfer from UCD of ‘ccTLD Manager’ status to IE Domain Registry, which was submitted to ICANN in February 2011, accompanied by letters of support from stakeholders in the local Internet community. In order to complete the transfer request ICANN will need a letter of support from the Irish government. The Department of the Environment, Climate and Communications (DECC) is still considering the matter. We remain hopeful that the designation of IE Domain Registry as an Operator of Essential Services (OES) in 2019 may provide a way forward for DECC. Outlook for 2024 New domain registrations for the first quarter of 2024 at 12,628, is down by 11% compared to the same period in 2023 (14,186 domains). This moderated .ie domain growth in early 2024 is replicated in many ccTLDs across Europe. In the context of some economic deterioration across the EU economy, leading to the expectation of lower interest rates, the prospects for future domain growth is generally uncertain. The work of the .IE Policy Advisory Committee is continuing into 2024, focused on building Awareness of the new regulations, Alignment with the transposed legislation and Advocacy for stakeholder protections. Appreciation As we complete our Strategy 2024 cycle, I look forward to working with our Board of Directors and thank the members and the Board sub-committees in particular for their ongoing support and guidance. I would like to express my sincerest thanks and appreciation to our dedicated staff who deserve huge credit and respect for their outstanding contribution to the continued growth of the .ie namespace, the development of our policies and services and, of paramount importance, the protection of our mission-critical systems and the DNS. We look forward to working with our industry colleagues and partners as we face the future with optimism for digital development, but cognisant of the ongoing challenges facing the sector and the economy. David Curtin Chief Executive 31 May 2024 Chief Executive’s Report IE Domain Registry CLG t/a .IE / Annual Report & Review 2023 6