Team Internet reports loss amid transformation programme
By Josh White
Date: Monday 01 Sep 2025
(Sharecast News) - Team Internet reported a first-half loss on Monday, as it pushed ahead with a major transformation programme, but said its core businesses were gaining resilience and laying the groundwork for a recovery in the second half of 2025.
For the six months ended 30 June, the internet group posted a net revenue of $72.8m, down from $97.7m a year earlier, while gross margin widened to 27.6% from 23.8%.
Adjusted EBITDA fell to $24.6m from $46.6m, with an operating loss of $7m compared with a profit of $22.9m in the prior-year period.
Its loss after tax was $14.1m, against a profit of $9.8m a year earlier.
The AIM-traded company said the results reflected the planned shift in its search segment from AFD monetisation to RSOC, a next-generation model that accounted for 24% of search revenues in the half, up from 4% a year ago.
International expansion in its comparison segment also gained traction, with its France portal now profitable and Italy and Spain nearing breakeven, while its domains, identity and software division secured major contracts, including a 10-year deal to run Colombia's .co domain.
"The first half of 2025 was defined by disciplined execution of our transformation strategy, in response to changing market circumstances in search," said chief executive Michael Riedl.
"We took bold but necessary steps to modernise our products, expand our addressable market, and improve our cost base."
He added that the firm's comparison business was scaling across Europe and "soon beyond".
"France is already profitable, Spain and Italy are approaching breakeven, the UK launch is live, and the US is next.
"These launches materially expand our addressable market and create long-term upside.
"Major innovations in user acquisition and conversion are setting new standards for the industry."
Riedl said the transformation had already positioned cearch as a "materially higher quality business model" with strong product-market fit, while contract wins in DIS and the international scaling of comparison would support double-digit EBITDA growth from the second half onwards.
The group said it would continue to focus on operational efficiency, capital allocation and a potential review of asset ownership to maximise shareholder value.
At 1028 BST, shares in Team Internet Group were down 3.08% at 59.8p.
Reporting by Josh White for Sharecast.com.
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