IE Domain Registry Limited, the group which administers the .ie web address system, yesterday reported a pre-tax profit of just €90,055 for the 18 months to December 31st, 2001.

In its first results since it was spun off from UCD in July 2000, the registry reported turnover of €1.93 million during the period, and administrative expenses of €1.84 million.

It said several unforeseen factors impacted negatively on its performance, including foot-and-mouth disease, September 11th and the extent and duration of the current economic downturn.

"The economic environment ... confirms the ongoing requirement for the IEDR to be prudent in relation to the management of its surpluses and reserves," the registry's annual report shows.

The results show that, as part of the transfer of the assets and liabilities of the former registry at UCD, the new body received €242,529 in reserves. Company funds now total €314,215. Chairman of the registry, Prof John Scanlan, said it could be two years before the registry - which was set up as a not-for-profit body - accumulated cash reserves that would enable it to lower charges or offer new services.

But Mr Mike Fagan, chief executive, said it was considering offering personal sub domain names within the .ie space. These are domains that are used by individuals rather than companies and may be popular with Irish people living abroad, he said.

Mr Fagan said the firm had processed 11,000 new registrations for web addresses since July 1st, 2000, and new registrations were now running at a level of 600 to 700 per month. About 15-20 .ie registrations were lost every month but the new additions were contributing to healthy growth, he said.

The registry is not currently advising any Irish bidder looking to bring the new .eu domain name registry to the Republic, which would offer firms a new .eu domain name.

It is believed two Irish consortiums are considering bidding and had been in talks with the IE Domain Registry. But Prof Scanlon said yesterday the registry had decided a month ago to withdraw from any association with bidders and had never planned to operate this registry.

The IE Domain Registry has been criticised by internet users for a lack of transparency in its decision making. Prof Scanlon said he didn't think this was justified and denied UCD was a kind of "shadow director" in the company. Four of the seven directors of the company are UCD staff.