Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF) is predicting a return to double-digit earnings growth in 2026 after a testing period marked by a downturn in digital advertising.
The group, which helps connect businesses to domains and runs comparison and search tools for advertisers, said trading in 2024 was steady but weighed down by shifting market dynamics in its Search business.
Adjusted EBITDA fell 4.7% to $91.9 million on revenue of $802.8 million, down 4.1% on the year. Net revenue, which strips out some third-party costs, dipped 1.9% to $187.5 million.
The company posted an operating profit of $8.2 million, down from a restated $45.7 million in 2023. Stripping out a $36 million impairment largely related to the Shinez business, operating profit was $44.2 million, a modest drop of 3.3%.
The Search division, which generates advertising revenue through publisher websites, saw both revenue and profitability decline markedly.
Revenue fell 11.1% to $537.1 million and EBITDA dropped 24.1% to $56.4 million as the business responded to what the company called “a difficult reset” triggered by recent changes in the digital advertising landscape.
Team Internet said the changes had long been anticipated and would lead to a leaner, more focused model over time.
Chief executive Michael Riedl said: “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.”
Those parts of the business did better. The Domains, Identity and Software segment grew revenue by 7.4% and increased EBITDA by 50.4% to $19.4 million. The Comparison segment also performed strongly, with EBITDA up 75% to $16.1 million.
The group swung to a post-tax loss of $17.7 million, down from a $25.1 million profit the year before, again due to the impairment charge.
Even so, it generated record cash, with adjusted operating cash flow up 7% to $99.1 million and conversion rising to 108%.
Net debt stood at $96.4 million at year-end, down from $109.9 million at the half-year but higher than the $74.1 million recorded twelve months earlier. The company is not proposing a final dividend, opting to focus on paying down debt.
Analysts expect adjusted EBITDA to be in the range of $60 million to $62 million in 2025 after which trajectory should be upward.