FY 2023 Trading Update
29/01/2024 07:00
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RNS Number : 1928B Team Internet Group PLC 29 January 2024
29 January 2024
Team Internet Group plc
("Team Internet" or the "Company", or the "Group")
FY 2023 Trading Update
Achieved record revenue and Adjusted EBITDA in 2023
Team Internet Group plc (AIM: TIG), the global internet company that generates
recurring revenue from creating meaningful and successful connections:
businesses to domains, brands to consumers, publishers to advertisers, is
pleased to announce its trading update for the full year 2023.
The Company now expects to report record gross revenue of c.USD 835 million,
net revenue (gross profit) of c.USD 190 million and adjusted EBITDA(1) of
c.USD 96 million for the financial year 2023. These represent increases of
c.15%, c.7% and c.12% respectively versus the prior year, ahead of the
recently upgraded market consensus(2) for 2023. Adjusted for acquisitions and
FX, year-on-year organic growth(3) for 2023 was c.12%.
Gross revenue growth breaks out as follows between the Company's two reporting
segments:
Segment 2023 Gross revenue 2022 Gross revenue Growth
Online Marketing USD 656 million USD 575 million 14%
Online Presence USD 179 million USD 154 million 16%
Growth has been delivered almost equally (on a percentage basis) by both
reporting segments, Online Marketing and Online Presence.
Net Debt(4) was c.USD 74 million as at 31 December 2023 compared to USD 57
million as at 31 December 2022, following USD 40 million of share
repurchases, USD 4 million payment of dividends and USD 22 million settlement
of deferred contingent consideration during 2023. Adjusted operating cash
conversion was near 100%.
CEO, Michael Riedl, stated, "As we reflect on 2023, I am proud to announce
that Team Internet has not only met, but exceeded the ambitious goals we set
at the beginning of the year. The Company's investment in innovation led to
the launch of more new products than ever before. The Company also signed up a
record number of new demand and supply side partners.
Our financial performance in 2023 stands as a testament to our strategic
vision and operational efficiency. We improved our Adjusted EBITDA-to-Gross
Profit ratio from 48% to 51%, reflecting our strong financial discipline and
focus on profitability.
The concurrent rise of social media and user-generated content as dominant
forms of online engagement, coupled with the increasing emphasis on data
privacy, uniquely positions our Company. This landscape not only aligns with
but actively propels our AI-based contextual advertising solutions. As such,
we anticipate that these concurrent trends will significantly bolster our
performance and help us outperform in any cycle."
Notice of Results
The Company confirms that it will publish its audited annual report for the
financial year ending 31 December 2023 on Monday, 18 March 2024.
On the day of results there will be a webinar / conference call for equity
analysts at 9:30am, UK time, and for private client investment managers at
11:30am, UK time. Both events will be hosted by CEO Michael Riedl and CFO
Billy Green. To register for either event please contact Harry Handyside at
teaminternet@secnewgate.co.uk where further details will be provided.
Furthermore, the company will hold an Investor Meet Company session at 1pm on
18 March 2024. Investors can sign up to Investor Meet Company for free to meet
Team Internet Group Plc via:
https://investormeetcompany.com/team-internet-group-plc/register-investor
(https://investormeetcompany.com/team-internet-group-plc/register-investor)
Investors who already follow Team Internet Group Plc on the Investor Meet
Company platform will automatically be invited. Questions can be submitted
pre-event via your Investor Meet Company dashboard up until 9am the day before
the meeting or at any time during the live presentation.
The Company will also present at the Berenberg UK Corporate Conference in
Hertfordshire, UK, on 19 and 20 March 2024.
(1) Parent, subsidiary and associate earnings before interest, tax,
depreciation, amortisation, non-cash charges and non-core operating expenses.
Non-core operating expenses include items related primarily to acquisition,
integration and other related costs, which are not incurred as part of the
underlying trading performance of the Group, and which are therefore adjusted
for, in line with Group policy.
(2) Analyst consensus of revenue and adjusted EBITDA for the financial year
ending 31 December 2023 as of 28 January 2024 and last updated on 16 January
2024 is USD 820.2 million (analyst range of USD 782.9 million to USD 839.4
million) and USD 93.9 million (analyst range of USD 90.9 million to USD 97.9
million) respectively.
(3) Organic growth is calculated based on trailing twelve-month pro-forma
revenue adjusted for acquired revenue, constant currency FX impact and
non-recurring and non-cash items (c.USD 837 million and c.USD 744 million for
financial years 2023 and 2022 respectively).
(4) Includes gross cash, interest-bearing debt and prepaid finance costs.
-Ends-
For further information:
Team Internet Group Plc +44 (0) 203 388 0600
Michael Riedl, Chief Executive Officer
William Green, Chief Financial Officer
Zeus (NOMAD and Joint Broker)
Nick Cowles / Jamie Peel / James Edis (Investment Banking) +44 (0) 161 831 1512
Dominic King (Corporate Broking) +44 (0) 203 829 5000
Berenberg (Joint Broker)
Mark Whitmore / Richard Andrews / Alix +44 (0) 20 3207 7800
Mecklenburg-Solodkoff
SEC Newgate (for Media) +44 (0) 203 757 6880
Bob Huxford / Alice Cho / Harry Handyside / Tom Carnegie teaminternet@secnewgate.co.uk
About Team Internet Group plc
Team Internet (AIM: TIG) creates meaningful and successful connections from
businesses to domains, brands to consumers, publishers to advertisers,
enabling everyone to realise their digital ambitions. The Company is a leading
global internet solutions company that operates in two highly attractive
markets: high-growth digital advertising (Online Marketing segment) and domain
name management solutions (Online Presence segment). The Company's Online
Marketing segment creates privacy-safe and AI-generated online consumer
journeys that convert general interest online media users into confident high
conviction consumers through advertorial and review websites. The Online
Presence segment is a critical constituent of the global online presence and
productivity tool ecosystem, where the Company serves as the primary
distribution channel for a wide range of digital products. The Company's
high-quality earnings come from subscription recurring revenues in the Online
Presence segment and revenue share on rolling utility-style contracts in the
Online Marketing segment. For more information please
visit: www.teaminternet.com
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