UK's Team Internet H1 revenue falls 32% on Search segment transition
UK's Team Internet H1 revenue falls 32% on Search segment transition
Overview
UK internet platform's H1 2026 revenue fell 32% yr/yr due to Search segment transition
Net revenue declined 16% yr/yr; adjusted EBITDA dropped 21%
Company returned to operating profit for first half-year since H1 2024
Outlook
Company expects a stronger H2 and a return to year-on-year earnings growth in H2 2026
Net debt is expected to reduce significantly in H2 and be in line with consensus at year end
Board expects Search segment to be profitable in the second half of 2026
Result Drivers
DIS SEGMENT MARGIN FOCUS - DIS segment net revenue rose and margins improved as company trimmed low value-added relationships and targeted higher-margin business
COMPARISON SEGMENT GROWTH - Comparison segment delivered revenue and margin growth, aided by new conversion funnels and international expansion
SEARCH SEGMENT TRANSITION - Search segment revenue and profitability fell sharply due to transition from AdSense for Domains to RSOC model; segment returned to profit in June
Company press release: ID:nRSG6439Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Loss |
| $6 mln |
|
H1 EBIT |
| $3 mln |
|
H1 Loss Per Basic Share |
| $0.02 |
|
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"
Wall Street's median 12-month price target for Team Internet Group PLC is GBp80.00, about 90.5% above its September 4 closing price of GBp42.00
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago
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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.)