Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF) has insisted its business remains resilient and well-positioned for growth, pointing to a pipeline of new contracts, international expansion and a shift towards new search technology.
The AIM-listed internet services group said the first half of the year had been one of “strategic transformation”, with modernised products, expanded markets and a leaner cost base.
Management said most of the benefits from these changes would start to flow through in the second half of 2025.
The company, which makes money from domains, e-commerce comparison sites and search advertising, reported gross revenue of $263.9 million for the six months to June, down from $409.7 million a year earlier.
Net revenue fell to $72.8 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to $24.6 million from $46.6 million.
Despite this, adjusted operating cash flow remained strong at $26.9 million. Net debt narrowed to $93.3 million after $6.7 million in share buybacks, with $155 million of liquidity available.
The group secured a 10-year contract to operate Colombia’s .co internet domain and expanded its comparison sites into France, Italy, Spain and the UK. Meanwhile, its transition to “RSOC”, a newer model of generating advertising revenue, gathered pace, with next-generation formats now making up nearly a quarter of sales in its search division.
TI said it remained confident in the outlook, citing “resilient infrastructure revenues in DIS, profitable scaling in Comparison, and the structural shift to RSOC in Search, all underpinned by disciplined execution”.
CEO Michael Riedl said: "The first half of 2025 was defined by disciplined execution of our transformation strategy, in response to changing market circumstances in Search.
"We took bold but necessary steps to modernise our products, expand our addressable market, and improve our cost base. Our performance improvement programme is targeting a $24 million reduction in the 2026 cost base versus 2024, on a like-for-like basis."