Team Internet Group (TIG) , a UK-based multinational internet services holding company, issed a trading update for the 6 months to June 30, 2024 (H1 2024).
Team Internet reported organic revenue growth of c. 9% for the trailing 12 months to June 30, 2024. Gross revenue was up 3% to US$409.7m year-on-year vs H1 2023. Net revenues increased by 7% to US$97.7m from H1 2023, with gross margin increasing from 23.0% to 23.8%, a relative 3.5% uplift.
Adjusted EBITDA similarly increased by 4% to US$46.6m from US$44.6m in H1 2023, with EBITDA margin increasing from 11.3% to 11.4%, a relative 0.9% uplift. Operating profit rose by 13% to US$22.9m, profit before tax was up 8% to US$14.4m, and profit after tax was up 4% to US$9.8m, all year-on-year. Adjusted EPS increased by 12% to US$0.1074.
Net debt was US$109.9m and leverage was 1.2x 2024 EBITDA following non-operating cash outflows related to the acquisition of the Shinez for US$31.8m, share buybacks of US$12.6m, and dividend payment of US$7.2m.
TIG also reported operational progress during the half. The number of visitor sessions rose by 16% to 6.1bn, and the Online Presence segment recorded organic revenue growth of 8%. Adjusted EBITDA as a percent of net revenue remained a healthy 48%. In April 2024, Team Internet shares began trading on the OTCQX Best Market under the symbol TIGXF.
FY23's final dividend of 2.0p/share was paid in May 2024, up 100% from 1.0p/share the previous year as the group continued its aggressive dividend policy, launched in 2022.
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Team Internet delivers a strong Q2 and H1, with robust growth in both adjusted and statutory earnings as well as revenue for the trailing 12 months. Adjusted EBITDA conversion remained a healthy 48% of net revenue, demonstrating continued strong profit margins. Cash conversion was 87%, but expected to normalise to c. 100% over the remainder of the year.
Year-on-year growth in Q2 was slightly ahead of that in Q1, demonstrating good momentum into H2 as TIG remains on track to meet full-year market expectations. Trading on OTCQX should further enhance the group's visibility and accessibility in the world's largest capital market.
Team Internet acquired Shinez and its subsidiaries in April 2024 for US$31.8m in cash, plus US$12.3m contingent on meeting financial targets over the next 2 years. The acquisition enhanced Team Internet's platform, specifically the 'awareness' capability of its advertising funnel, complementing its existing solutions TONIC for 'consideration' and comparison platforms for 'conversion'.
The group's strategy is to integrate Shinez and the other solutions into a platform designed to boost advertising revenue, driving future profitability through improved targeting, increased RPM, and the accumulation of 1st party data.
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