London focused estate agents, Foxtons, is set to benefit from the new dot London domain name, according to Canaccord Genuity.
The US body responsible for domain names, ICANN, approved the dot London suffix last week. The Evening Standard reported that the domain named 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 to promote the capital.
Dot London is expected to go live by between the Spring and Summer of 2014. Canaccord Genuity expect the support this will bring to London businesses will have a positive impact on the capital's most successful estate agency. If there is still room for London's residential property market to rise further, then Foxtons will certainly be a major beneficiary.
Canaccord Genuity 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.
Only a few weeks ago, Foxtons reported higher earnings and turnover in its first market update since September. The company posted a turnover of £41m, a 17.9 per cent increase on the same period last year, and a 23 per cent rise in core earnings for the first nine months of the year.