Team Internet reports strong cash generation despite headline loss
By Josh White
Date: Monday 24 Mar 2025
(Sharecast News) - Team Internet reported strong operational cash generation and resilient margins for the year ended 31 December on Monday, despite a headline loss driven by impairment charges.
The AIM-traded firm said gross revenue declined 4.1% to $802.8m, while net revenue slipped 1.9% to $187.5m.
Its gross margin improved to 23.4% from 22.8%.
Adjusted EBITDA fell 4.7% to $91.9m, maintaining a margin of 49.0% of net revenue.
Operating profit dropped sharply to $8.2m from a restated $45.7m, reflecting $36m in impairment charges primarily related to its Shinez IO subsidiary.
Excluding those charges, operating profit would have been $44.2m, down 3.3% year-on-year.
The group posted a net loss after tax of $17.7m compared to a restated profit of $25.1m in 2023.
Adjusted diluted earnings per share declined 5.5% to 21.22 cents, while adjusted operating cash flow rose 7.0% to a record $99.1m, with cash conversion at 108%.
Net debt decreased to $96.4m at year-end from $109.9m at mid-year, despite $12m in shareholder distributions, including an interim dividend.
Leverage increased to 1.2 times adjusted EBITDA, and interest cover fell to 5.9 times.
The board did not propose a final dividend for 2024, prioritising deleveraging over short-term distributions.
It said its strategic transformation during the year - focussed on AI-driven monetisation, increased direct advertiser relationships and operational efficiency - had created a leaner business well positioned for future growth.
The company added that the domains, identity and software, and comparison segments outperformed expectations, setting a strong foundation for 2025.
"The internet is in a state of constant reinvention, and so is Team Internet," said chief executive officer Michael Riedl.
"2024 brought its share of challenges - we didn't just adapt, we evolved and delivered a robust financial performance.
"Our product comparison and identity solutions are scaling rapidly, proving that the Group's strategic diversification pays off."
Riedl said the search segment's "difficult reset" in 2025 in response to recent market developments was the acceleration of a long-anticipated pivot; not, the board believed, a permanent setback.
"We are re-engineering the business, focusing on efficiency, high-value traffic, and AI-powered content generation to drive a leaner, smarter, and more sustainable model.
"By 2026, we expect to be back to double-digit EBITDA growth, fuelled by innovation, automation, and relentless execution.
"Team Internet remains a key enabler of the infrastructure of digital commerce across domains, e-commerce and digital marketing."
At 0933 GMT, shares in Team Internet Group were down 0.3% at 67.4p.
Reporting by Josh White for Sharecast.com.
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