GoFuckYourself.com - Adult Webmaster Forum - $5.99 domains, I wonder what the catch is?

I got a spam for $5.99 domains. Isn't that less than the registrar pays?

And I look at their terms, and here's the catch:

https://www.iregistrations.com/terms.shtml

2.6 Additional Services

2.6.1 The Web Services Included promotion is for a limited time only, and iregistrations reserves the right to alter or withdraw this promotion without prior notice. Any changes will be published at www.iregistrations.com

2.6.2 During the promotional period each domain registered automatically attracts the provision of the following services by iregistrations: 50 Mb Space, 2 Gb/month website visitor traffic, 10x POP email accounts, SSH/Telnet, MySQL, CGI-Bin, Control Panel, Search engine submission.

2.6.3 iregistrations agrees to use reasonable endeavors to provide the above services to the account of each domain, but will not be held responsible for any delays in or interruptions to the provision of these services.

2.6.4 The initial 1 month provision of these services is free when a new domain is registered through iregistrations during this promotion. iregistrations normally charges a standard rate of US$39.98 per month for these services.

2.6.5 Registrant can cancel these services for any reason during the initial 30 day period without incurring any charge other than the US$5.99 already billed for domain registration.

2.6.6 Non-cancellation within this allocated period constitutes acceptance by the registrant for the continuation of and subsequent billing at the standard rate for these services.

2.6.7 Billing after the initial 30 day period is by direct debit from the registrants nominated credit card at the rate of $39.98 per month and is payable monthly in advance.

2.6.8 Registrant can cancel these services at any time by logging into the account with the associated username and password. Cancellation within the free 1 month period incurs no service charges beyond the $5.99/year for the domain registration. Cancellation after the initial 1 month period incurs an administration fee equal to one months service fee of $39.98 in addition to the service fees for any months or part months beyong the free trial period. While payment is made monthly in advance no refunds will be awarded for partial periods paid for but for which the service is cancelled.

2.6.9 Should the registrant dishonour any fees charged to the nominated credit card the registrant agrees to pay an administrative fee of $30.00 in addition to the charges dishonoured. This administrative fee is payable prior to resumption of services by iregistrations.com and reallocation of the domain name back to the registrant.