ICANN has revised its forecasts for the next fiscal year beginning on July 1. ICANN financiers believe that due to the economic crisis caused by the COVID-19 pandemic, the corporation’s revenue will fall by eight percent, or $11.1 million. The crisis will hit the registries of new gTLDs the hardest. Their projected contribution to ICANN’s budget will drop by one-third, from $5.3 to $3.5 million. Registries pay ICANN $0.25 for each transaction (registrations, renewals or transfers), so this forecast means that the corporation expects 8.8 million fewer transactions in new domains.
The forecast for “old” domain zones looks a little more optimistic, with possible revenue slipping from $49 million to $47.7 million. ICANN also expects to lose accredited registrars and registries. The forecast includes the termination of contracts of 63 registries, mostly registries of dot-brands. As for registrars, their number, according to ICANN analysts, may immediately decrease by 380.
ICANN is also planning a series of measures to cut costs. For example, it will reduce travel expenses by $12.4 million. However, this is unlikely to require much effort from ICANN, given the worldwide travel ban. In addition, the corporation plans to downsize its staff by 15 people, according to Domain Incite.
