Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF) turned in nine-month numbers that it said showed the resilience of the business and the benefits of its acquisition strategy, with record levels of profitability set to be maintained.
Gross revenue increased by 1% to $615.1 million and net revenue by 4% to $143.6 million, with an improvement in gross margin from 22.60% to 23.30%.
The Online Marketing segment saw a 15% increase in the number of visitor sessions for its core TONIC and ParkingCrew products for the trailing twelve-month period to end-September.
This was as revenue per thousand sessions (RPM) decreased by 18% to $79 in the quarter for Online Marketing, and rose 19% to $246 for the product comparison business, VGL, as visitor sessions climbed 33%.
Group adjusted EBITDA grew by 2% to $70.1 million, maintaining an adjusted EBITDA margin of around 49%.
CEO Michael Riedl said: "Team Internet has delivered a resilient performance in our core businesses within a dynamic market environment and the group is poised to maintain record levels of profitability."
The recent acquisition of digital marketing and content publication specialist Shinez has not yet contributed to EBITDA, but Riedl said he is "confident in its strategic value to our long-term objectives" as its operating model and cost base are adjusted to improve performance.
In contrast, the Comparison business, created from the acquisition of VGL Publishing in 2022, has grown significantly.
"Our focus is now more than ever on realising synergies through strategic integration, enhancing value across the sum of the parts of our established assets and accelerating shareholder returns. With our ongoing commitment to innovation and operational excellence, we are well-positioned to return to higher growth in profit and cash flow," said Riedl.
The board said the group remains on track to produce record profits in 2024 and 2025, albeit at more moderate growth rates than originally anticipated. For the current year. adjusted EBITDA of $97 million is guided.
He said the group had pursued higher traffic quality metrics and put less reliance on short-form video during the period, in line with market best practice, which resulted in volume growth remaining healthy but lower RPM.
But he added that the launch of the search-on-content business model is a "key and significant investment" in the last eighteen months, which is expected to assist the group in improving both metrics over time.
Profit before tax decreased 9% to $18.30 million in the nine-month period, while adjusted diluted earnings per share showed a positive growth of 7% to 16.83 cents.
Net debt was reported at $99.70 million, with the company reducing its debt by $10.20 million in Q3 2024.
Post-period, the company made a payment of $3 million related to the acquisition of MA Aporia.