Team Internet to report record gross revenue of $835 million

Team Internet Group plc (LON:TIG), the global internet company that generates recurring revenue from creating meaningful and successful connections: businesses to domains, brands to consumers, publishers to advertisers, has announced 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 EBITDA¹ 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 consensus² for 2023. Adjusted for acquisitions and FX, year-on-year organic growth³ for 2023 was c.12%.

Gross revenue growth breaks out as follows between the Company’s two reporting segments:

Growth has been delivered almost equally (on a percentage basis) by both reporting segments, Online Marketing and Online Presence.

Net Debt⁴ 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 [email protected] where further details will be provided.

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.