Foxtons could be a major beneficiary of a new domain name for the capital – .London
The new domain name means that London businesses will be able to rename their websites as .london rather than .co.uk or .com
City analyst Canaccord Genuity thinks this will profit Foxtons and has upgraded the firm from a ‘hold’ to a ‘buy’.
However, Foxtons is unlikely to be the only beneficiary, with a stampede of businesses applying to use the new domain name, set to go live next spring.
So far, 20,000 businesses and other organisations, ranging from Carnaby Street to Selfridges, have expressed their interest.
The domain name has been approved by the body responsible for domain names, ICANN.
The granting of the domain name is seen as a major marketing coup for London. It will need to be renewed every year for a fee, which London & Partners hope will generate an income stream of millions of pounds which can be used to promote the capital.
Deputy London mayor Kit Malthouse, who chairs London & Partners, the body that will auction the domain names, said: “It’s a huge opportunity for London businesses to market themselves and promote our city across the world.”
Canaccord says that “if there is still room for London’s residential property market to rise further, then Foxtons will certainly be a major beneficiary”.
The firm said: “We value Foxtons with reference to its track record of generating high returns on invested capital, its ability to grow organically and its intention to return its free cash to shareholders.”
Foxtons floated in September and has since posted strong results for the first nine months of this year, with revenue of £41m up 17.9%% on the same period last year.
The new domain names need not – and these are purely examples – be foxtons.london, winkworth.london or marshandparsons.london
They could equally be homes.london or properties.london
A lot will depend on who gets there first and then who makes the highest bid.
www.mydotlondon.com
Comments
So they will sell more houses because?? dumb ass analyst
Slow news day?
What a nightmare - all those brands that have a .co.uk or a .net or a .com and think they need to protect their brand will now have money extorted from them because they dare not let another company in on the name.
Imagine being reallygoodagent.co.uk based in North London to find that some scumbag has just taken reallygoodagent.london.
And don't talk to me about the lawyers who must all be rubbing their hands for joy as the prospect of an inordinate number of passing off cases begin.
What?