Team Internet pleased with first-quarter performance
By Josh White
Date: Monday 13 May 2024
(Sharecast News) - Team Internet Group reported organic revenue growth of 8% for the 12 months through March on Monday, with gross revenue increasing 1% to $195.9m in the first quarter year-on-year, while net revenue rose 4% to $47.6m, with a gross margin increase from 23.5% to 24.3%.
The AIM-traded firm said adjusted EBITDA increased 4% to $22.2m, with a margin increase from 10.9% to 11.3%.
Operating profit surged 44% to $11.1m, and profit before tax rose 65% to $7.1m.
Profit after tax also increased significantly, by 62% to $4.7m, while adjusted earnings per share (EPS) increased 20% to 5.35 US cents.
The company reported net debt of $80.6m, up from $74.1m in December 2023, with leverage of 0.95x pro forma trailing 12 months 2024 EBITDA.
In the first quarter, the online marketing segment saw a 19% increase in visitor sessions to six billion for the trailing 12 months, with revenue per thousand sessions (RPM) decreasing by 10% to $91.
The online presence segment recorded organic revenue growth of 14% for the trailing 12 months.
Post-period highlights included a final dividend of 2p payable on 28 May, marking a 100% increase from the 2022 financial year.
Additionally, the company's ordinary shares began trading on the OTCQX Best Market under the symbol 'TIGXF' on 10 April, aiming to enhance visibility and accessibility in the capital market.
Additionally, on 26 April, the firm acquired Shinez IO and its subsidiaries for an initial cash consideration of $38.9m.
Looking ahead, Team Internet said it remained focussed on earnings growth over top-line growth, with confidence in strategic investments in product innovation, vertical integration, and international expansion.
The company said it expected to meet market expectations for the full year.
"I am pleased to report that the emphasis on holistically managing for earnings and cash flow continues to yield substantial benefits," said chief executive officer Michael Riedl.
"This holds true even as we tailor the growth of our online marketing sector to align with our enhanced focus on sustainability and customer experience.
"We are laying the strong operational foundations which will best position the group to go from strength to strength, as we execute on our strategy and deliver attractive returns for our shareholders."
Riedl said the start of trading on OTCQX was another milestone.
"Finally, with Shinez joining Team Internet, we now have a robust platform addressing the 'awareness' stage of the advertising funnel, complementing our existing offerings, TONIC and VGL, which focus on 'consideration' and 'conversion', respectively.
"We now undoubtedly hold the most comprehensive product offering among our peers.
"We remain laser-focused on our OM2 vision - omni media, omni monetisation - and leadership in the carefully targeted markets in which we operate, making us even more resilient as we scale up."
At 1148 BST, shares in Team Internet Group were down 0.57% at 152.33p.
Reporting by Josh White for Sharecast.com.
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