Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Group revenue was USD 263.9m, with gross margin improving to 27.6% despite the planned reduction in legacy monetisation.

  • Team Internet secured a 10-year contract to operate Colombia’s .co domain and expanded Comparison internationally, with France.

Team Internet Group plc (AIM:TIG), a global internet company connecting businesses to domains, brands to consumers, and publishers to advertisers, has reported its unaudited financial results for the six months ended 30 June 2025. The period marked a transition phase, with lower revenue from legacy operations offset by strategic repositioning across its three business segments.

Financial Results

Gross revenue for H1 2025 was USD 263.9 million, compared with USD 409.7 million in H1 2024, reflecting the planned transition away from legacy AFD monetisation. Net revenue (gross profit) was USD 72.8 million, down from USD 97.7 million in H1 2024, though gross margin expanded from 23.8% to 27.6%.

Adjusted EBITDA stood at USD 24.6 million versus USD 46.6 million a year earlier, representing 33.8% of net revenue. Core operating expenses reduced to USD 48.2 million from USD 51.1 million. The Group recorded an operating loss of USD 7.0 million, compared with an operating profit of USD 22.9 million in H1 2024, reflecting lower EBITDA and non-cash charges, including impairments and foreign exchange losses.

Loss after tax was USD 14.1 million, against a profit of USD 9.8 million in the prior year. Adjusted diluted earnings per share were 5.93 cents, down from 10.92 cents. Adjusted operating cash flow was USD 26.9 million, compared with USD 40.6 million, with cash conversion improving to 109% from 87%.

Net debt reduced to USD 93.3 million from USD 109.9 million at 30 June 2024, despite USD 6.7 million being returned to shareholders via buybacks. The Group reported access to USD 154.9 million in liquidity, with leverage at 1.7x adjusted EBITDA for the trailing twelve months to 30 June 2025.

Operational Progress

In Domains, Identity & Software (DIS), Team Internet secured multiple international accounts, including a 10-year consortium agreement to operate Colombia’s .co top-level domain.

The Comparison segment continued its international expansion. The relaunched France portal achieved profitability, while Italy and Spain are nearing breakeven. A new UK portal was launched during the period. International GMV accounted for 5% of segment GMV, compared with near zero in H1 2024.

In Search, the transition from AFD to RSOC progressed, with RSOC and other next-generation monetisation models growing their gross revenue share from 4% to 24%. These formats, including commerce media and viral video solutions, grew 160% year-on-year, underscoring the segment’s shift toward more sustainable growth.

Outlook

Management noted that most of the benefits from H1 2025 restructuring will materialise in the second half of the year. DIS is positioned for continued double-digit EBITDA growth as new contracts become revenue generating. Comparison is expected to contribute more meaningfully to cash flow as international portals mature. Search is forecast to benefit from RSOC-led revenue recovery and optimisation of next-generation monetisation models.