The Dot-IE Domain Registry has reported a 6% rise in its revenues for 2016 to just over €3m.
The body continued to make a loss in the year, though this was cut by more than two thirds to €126,519.
The IEDR maintains the .ie domain - which is the official internet address for Ireland.
In addition to maintaining the database of domain names here, it also promotes its use, provides dispute resolution and offers a directory service for people looking to find the owner of a particular address.
According to CEO David Curtin, the loss last year was due to its ongoing efforts to expand its usage amongst businesses.
"The main the reason for the loss was because we're continuing to invest in the growth, expansion and protection of the dot-ie name space," he said. "In 2016 we invested in marketing and promotion activities, expanding our range of services - all designed really to expand and grow the dot-ie domain space in the face of huge international competition."
That competition has picked up considerably in recent years following a massive liberalisation of the international domain system.
That has seen many new domain options come available to customers - including things like .irish - which may attract some users away from the .ie option.
The IEDR has seen a slight fall in the number of new domain registrations too, down 1.7% last year when compared to 2015, but Mr Curtin says that this is matching a trend seen around Europe.
"Some registries, in fact, are seeing a reduction in the size of their database," he said. "We're quite proud of the growth in 2016 - it is a slightly reduction on the previous year - but it still says that almost 35,000 businesses, clubs, societies and individuals decided that .ie was their extension of choice.
"[It's] effectively their digital identity, and that's what they're using to say to the world that they're identifiably Irish online."
Another source of increased competition is platforms like Facebook - which offer a very low barrier of entry for new businesses looking to develop a web presence.
Where in the past companies would have to set up a website to make themselves visible to online customers, now social media is often the first port of call and the main route for communicating with others.
Mr Curtin accepts that things like Facebook are attractive to businesses - but he feels a website remains an important step for those looking to develop what they do online.
"A Facebook presence and a website can go hand in hand," he said. "Facebook is excellent for attracting your likes in terms of awareness of your product, but if you really want to sell online then you really need a .ie website, so that you can display your range of products to your customers.
"And you own the .ie; you can control how it develops and how it expands - and you really don't have that control with a Facebook presence."
