The firm that distributes .ie internet domain names has suspended more than 6,000 domains since January 2003 as it restructures its operations following the excesses of the internet bubble.

IE Domain Registry has subsequently deleted 4,900 domains, many of which were never used to set up websites by the companies that registered them. The deletions follow an audit by the registry, which has forced it to write off €500,000 in bad debts.

Details of the audit were provided by IE Domain Registry yesterday as it filed accounts, which show it made a profit of €480,874 in 2003, turning around a loss of €1.2 million in the previous year.

The firm generated turnover worth €2.01 million in 2003, up from €1.52 million in the previous 12 months. It has accumulated losses worth €941,459.

The accounts, which are the first published since the former chief executive of IE Domain Registry, Mr Mike Fagan, resigned last year following an investigation, show an improved financial performance at the company.

In the past four months there has been a big increase in the number of new registrations for .ie domains, which enable companies to set up websites registered in the Republic.

Since the start of the year, almost 4,000 domain names have been registered with the registry, boosting the total number of .ie domains to 38,040. This represents a big increase on the 33,345 domains registered in April 2003.

Mr David Curtin, the new chief executive of IE Domain Registry, said the increase in registrations reflected a more buoyant economy, a comeback in the IT sector and the roll-out of broadband services in the Republic.

The increased interest in registering a .ie domain is also boosting the registry's coffers. Its 2003 accounts, which were signed off by the board at the end of March, show it has deferred income worth €1.2 million.

Mr Curtin said the company had taken a number of corrective actions since its well-publicised difficulties in 2002. These include streamlining the registration process for firms seeking a domain and undertaking the audit. He said the large number of suspensions and deletions was caused by firms' non-payment for or renewing domains.

This was probably a result of firms going out of business or reneging on domains after securing multiple domain names. Some may also have sought domains to protect their intellectual property but have not renewed them recently.