Team Internet Group: 2024 report

Team Internet Group Plc (AIM: TIG, OTCQX: TIGXF) published its trading update for the full year 2024.

For the financial year 2024, the Company expects to report gross revenue of c.USD 803 million (2023: USD 837 million), net revenue (gross profit) of c.USD 188 million (2023: USD 191 million) and adjusted EBITDA¹ of c.USD 92 million (2023: USD 96 million).

Segment Highlights

The Group committed to providing greater information by reporting on the profitability of each reporting segment, as well as separating out our Comparison business, which has grown so favourably that it now qualifies as a separate reporting segment.

The Group’s new reporting segments performed as follows during financial years 2023 and 2024:

12 months to 31 Dec	2024	2023	Growth
	USD million	USD million	%
Domains, Identity & Software (DIS) A
Revenue	203	189	7%
Net revenue	74	68	9%
Adjusted EBITDA	19	13	46%
Comparison B
Revenue	63	44	43%
Net revenue	23	16	44%
Adjusted EBITDA	17	9	89%
Search c
Revenue	537	604	(11%)
Net revenue	91	107	(15%)
Adjusted EBITDA	56	74	(24%)
Total
Revenue	803	837	(4%)
Net revenue	188	191	(2%)
Adjusted EBITDA	92	96	(4%)

Key Operational Updates

Domains, Identity & Software (DIS)

DIS delivered above-market revenue growth of 7%, with expanding margins driving a 9% increase in net revenue and a 46% improvement in EBITDA, showcasing efficiency gains and operational leverage. As part of our strategy, Team Internet has consolidated its subscription-based platforms and Software-as-a-Service (SaaS) businesses into a streamlined offering.

Comparison

Our Comparison segment demonstrated exceptional performance, with revenue growth of 43% and EBITDA increasing by 89% year-on-year. The segment benefits from our AI-native platform, which has enabled faster internationalisation, including new launches in Italy, Spain, and a relaunch in France between mid-October and today. More country launches are scheduled for the current year.

Search

As previously announced, the Search segment faced a challenging market in the second half of 2024, leading to a 15% contraction in net revenue. Despite these headwinds continuing, the Group has prioritised improved customer experience and brand trust over volume growth to strengthen long-term sustainability.

Capital Allocation and Financial Position

Net Debt² was c.USD 97 million as at 31 December 2024 compared to USD 74 million as at 31 December 2023. This is after the impact of:

·    USD 21 million of share repurchases;

·    USD 10 million payments of dividends; and

·    USD 32 million of acquisition consideration, net of cash acquired, during 2024.

Pertaining to the latter, the Group expects to record a non-cash impairment charge in respect of the acquisition of Shinez I.O Ltd. (“Shinez”) in its audited FY 2024 accounts. Legal action against the sellers of Shinez is ongoing. The restructuring plan for Shinez, which is now under new management, includes transitioning Shinez’ business model from text-based to short-form video, aligning with consumer trends.

Adjusted operating cash flow reached a record high of c.USD 95 million (2023: USD 93 million) representing an adjusted operating cash conversion of 103%, reflecting prudent management of working capital.

CEO, Michael Riedl, stated,

“We are reflecting on a year of significant developments for Team Internet. Despite modest contractions in Group revenue and EBITDA, we ended the year with record operating cash flow and the most balanced earnings composition in our history. This underscores the resilience and potential of our diversified business model.

Our DIS segment achieved above-market growth, while our Comparison segment showcased extraordinary results, driven by our cutting-edge AI-native platform. We are confident that our Search division’s transition into a more content-rich consumer experience will ultimately set up the division for sustainable long-term growth.

Looking forward, we remain committed to delivering sustainable earnings growth and shareholder returns through disciplined capital allocation, including dividends and share buybacks. We are well-positioned to capitalise on growth opportunities across all segments.”