REG - Team Internet Group - Trading Update and progress on Strategic Review

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RNS Number : 7522W  Team Internet Group PLC  16 March 2026

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16 March 2026

 Team Internet Group plc

("Team Internet" or the "Company" or the "Group")

Financial Year ("FY") 2025 Trading Update and progress on Strategic Review

 

Team Internet Group plc (AIM: TIG, OTCQX: TIGXF), the global internet company
that generates recurring revenue from powering identity and discovery online,
is pleased to announce a trading update for the financial year ended 31
December 2025 ("FY25"). The provisional results for FY25 are in line with
previous guidance, with gross revenue, net revenue and adjusted EBITDA((1))
all above or towards the top end of the range of current analyst
forecasts((2)). Additional financial data is provided below in advance of the
publication of the audited annual report. All data presented is unaudited. The
Board reiterates that the Group continues to trade in line with market
expectations in FY26.

Trading Update

 

·    FY25 results were delivered in line with or above current analyst
expectations, with strong cash generation and improving gross margins despite
a challenging transition year for the Search segment. The Group's key
financial metrics for FY25 are set out below:Gross revenue of USD 481.9
million (FY2024: USD 802.8 million)

·    Net revenue (gross profit) of USD 136.2 million (FY2024: USD 187.5
million), with gross margin increasing from 23.4% to 28.3%

·    Adjusted EBITDA of USD 42.7 million (FY2024: USD 91.9 million)

·    Adjusted operating cash flow of USD 66.0 million (FY2024: USD 99.1
million)

·    Adjusted operating cash conversion of 155% (FY2024: 108%)

·    Net debt((3)) of USD 87.6 million (31 December 2024: USD 96.4
million). Team Internet has continued to be cash generative in FY2025,
reducing net debt by USD 8.8 million during the year despite USD 6.9 million
of shareholder distributions

The year-on-year reduction in gross revenue primarily reflects the previously
disclosed transition within the Search segment from legacy monetisation
channels towards next-generation solutions, including Related Search on
Content and Commerce Media.

While this transition impacted short-term revenue, the Group's key performance
indicators demonstrate continued strategic progress, including increased
adoption of value-added services in DIS, expanding geographic diversification
in Comparison and the accelerating contribution of next-generation
monetisation solutions within Search:

·    Domains, Identity & Software ("DIS") segment:

o  The volume of processed domain registration years decreased by 7% to 12.3
million (FY2024: 13.2 million)

o  Average revenue per domain year increased by 2% to USD 12.64 (FY2024:
12.45)

o  The proportion of value-added services revenue within the segment
increased by 1.7% (a relative 10.6% uplift) to 17.8% (FY2024: 16.1%)

·    Comparison segment:

o  The number of visitor sessions decreased by 10% to 169.4 million (FY2024:
188.5 million)

o  Revenue per thousand impressions increased by 3% to USD 257 (FY2024: USD
249)

o  The proportion of gross merchandise value (GMV) generated outside the DACH
region increased to 4.8% (FY2024: 0.4%)

·    Search segment:

o  The number of visitor sessions decreased by 19% to 5.5 billion (FY2024:
6.8 billion)

o  Revenue per thousand impressions decreased by 51% to USD 34 (FY2024: USD
69)

o  The proportion of next-generation monetisation revenue within the segment
increased to 39.1% (FY2024: 4.7%)

Strategic Review

Further to the Strategic Review announced on 11 November 2025 and updated on
20 January 2026, the Company confirms that discussions in relation to a
disposal of the DIS segment continue to progress well. The Board remains
confident that any transaction would deliver a value-maximising outcome in
excess of the Group's current market capitalisation. Further updates will be
provided as appropriate.

 

CEO Comment

Michael Riedl, CEO of Team Internet Group, commented:

"As previously indicated, Team Internet's strongest performance in FY25 was
delivered in the final quarter, following a year characterised by strategic
transition within the Search segment and continued momentum in our core
platforms.

Our core platforms remain robust. DIS and Comparison have delivered a combined
EBITDA CAGR of 26% since 2023 and now generate approximately 80% of Group
EBITDA, representing the higher quality of earnings within the Group.

In Search, we are advancing a product evolution designed to position the
business for greater resilience and long-term sustainability.

At the same time, our key performance indicators demonstrate continued
strategic progress across the portfolio.

Looking ahead, we view the year with confidence. Continued operational
recovery, combined with disciplined capital allocation and potential strategic
portfolio actions, creates opportunities to unlock and grow shareholder value
in line with the Board's ongoing strategic focus."

 

((1)) Earnings before interest, tax, depreciation, amortisation and
impairment, non-core operating expenses, foreign exchange gains and losses and
share-based payment expense

((2) ) Analyst consensus of gross revenue, net revenue and adjusted EBITDA
for the financial year ending 31 December 2025 as of 13 March 2026:

Gross revenue: USD 465 million (analyst range of USD 371 million to USD 541
million);

Net revenue: USD 126 million (analyst range of USD 113 million and USD 134
million); and

Adjusted EBITDA: USD 42 million (analyst range of USD 40 million to USD 43
million) respectively

((3)) Includes cash (USD 81.2m), bank debt and prepaid finance costs (USD
168.4m) and hedging liabilities (USD 0.4m) as of 31 December 2025 (31 December
2024 cash (USD 88.3m), bank debt and prepaid finance costs (USD 184.9m) and
hedging assets (USD 0.2m))

 

Enquiries

For further information, please contact:

Team Internet Group
plc
+44 (0) 203 388 0600

Michael Riedl, Chief Executive Officer

William Green, Chief Financial Officer

Zeus Capital Limited (NOMAD and Joint Broker)

James Edis / Dan Bate (Investment Banking)
 
              +44 (0) 161 831 1512

Dominic King (Corporate Broking)
 
+44 (0) 203 829 5000

Berenberg (Joint
Broker)
                +44 (0) 203 207 7800

Mark Whitmore / Richard Andrews

SEC Newgate (for
media)
+44 (0) 203 757 6880

Bob Huxford / Harry Handyside / Gwen
Samuel
teaminternet@secnewgate.co.uk

 

About Team Internet Group plc

Everything begins with a name. Team Internet (AIM: TIG, OTCQX: TIGXF) powers
identity and discovery online, enabling businesses, brands and consumers to
establish their digital presence and realise their ambitions.

 The Company is a leading global internet solutions business operating in two
highly attractive markets: domain name management, identity and software
solutions (DIS segment) and digital advertising (Comparison and Search
segments).

The DIS segment is a critical component of the global online presence and
productivity ecosystem, where the Company serves as a core distribution
channel for domain names and a wide range of digital products.

The Company's Comparison and Search segments create privacy-safe, AI-generated
consumer journeys that convert general-interest media users into confident,
high-conviction consumers through advertorial and review websites.

The Company's high-quality earnings derive from subscription-based recurring
revenues in the DIS segment and revenue-share arrangements under rolling
utility-style contracts in the Comparison and Search segments.

For more information please visit: www.teaminternet.com
(http://www.teaminternet.com)

Forward-Looking Statements

This document includes forward-looking statements. Whilst these
forward-looking statements are made in good faith, they are based upon the
information available to Team Internet at the date of this document and upon
current expectations, projections, market conditions and assumptions about
future events. These forward-looking statements are subject to risks,
uncertainties and assumptions about the Group and should be treated with an
appropriate degree of caution.

 

MANAGEMENT COMMENTARY ON GROUP PERFORMANCE

Introduction

In line with previous guidance, we are reporting unaudited FY25 gross revenue
of USD 481.9 million and net revenue of USD 136.2 million, with adjusted
EBITDA of USD 42.7 million.

During 2025, the Group's Domains, Identity & Software segment continued to
outperform expectations, while the Comparison segment recovered from a
challenging start to the year and returned to year-on-year growth in H2. The
headwinds facing the Group's Search segment are well-documented; however, the
Group remains at the forefront of Related Search on Content and commerce media
monetisation, positioning it for the next phase of high-intent digital
marketing.

Performance review

The Group's financial performance during the period is reflected in the key
financial metrics listed below:

                                     Year ended         Year ended

                                     31 December 2025   31 December 2024

                                                                           Change
                                     USD m              USD m              %
 Revenue                             481.9              802.8              (40%)
 Net revenue (gross profit)          136.2              187.5              (27%)
 Adjusted EBITDA                     42.7               91.9               (54%)
 Adjusted operating cash conversion  155%               108%               44%

Segment Highlights

 

The Group's reporting segments performed as follows during financial years
2024 and 2025:

 

                                         Year ended    Year ended

                                         31 December   31 December

                                         2025          2024          Change
                                         USD m         USD m         %
 Domains, Identity & Software (DIS)
 Revenue                                 194.6         202.7         (4%)
 Net revenue                             75.6          73.6          3%
 Adjusted EBITDA                         21.4          19.4          10%
 Comparison
 Revenue                                 65.3          63.0          4%
 Net revenue                             20.8          22.4          (7%)
 Adjusted EBITDA                         12.3          16.1          (23%)
 Search
 Revenue                                 222.0         537.1         (59%)
 Net revenue                             39.8          91.5          (57%)
 Adjusted EBITDA                         9.0           56.4          (84%)

 Total
 Revenue                                 481.9         802.8         (40%
 Net revenue                             136.2         187.5         (27%)
 Adjusted EBITDA                         42.7          91.9          (54%)

 

 

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