UK's Team Internet H1 revenue falls 32%, EBITDA drops 21%
UK's Team Internet H1 revenue falls 32%, EBITDA drops 21%
Overview
UK internet solutions provider's H1 revenue fell 32% yr/yr
Adjusted EBITDA declined 21% yr/yr
Company expects net debt to fall in H2 after scheduled tax payments raised H1 net debt
Outlook
Company expects stronger H2 2026 and a return to year-on-year earnings growth
Board expects net debt to reduce significantly in H2 2026 and meet year-end expectations
Company continues strategic review of DIS business, expects possible transaction completion in 2026
Result Drivers
DIS MARGIN IMPROVEMENT - DIS segment delivered higher adjusted EBITDA despite lower revenue, reflecting margin expansion
COMPARISON SEGMENT GROWTH - Comparison segment grew revenue and expanded margins, increasing adjusted EBITDA by 54% yr/yr
SEARCH TRANSITION - Search segment returned to profitability in June after completing transition away from AdSense for Domains and implementing cost optimisation and automation
Company press release: ID:nRSX6656Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $179.1 mln |
|
H1 Adjusted EBITDA |
| $19.5 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Team Internet Group PLC is GBp80.00, about 79.8% above its July 23 closing price of GBp44.50
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
July 23 - Verisign Q2 revenue slightly beats estimates as domain name registrations grew
July 21 - UK's Mony Group H1 revenue rises on car insurance recovery
July 22 - Alphabet's Q2 revenue beats estimates on Cloud, Search strength
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)