Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF, FRA:4CN) told investors it expects FY2025 trading to land at or above the level anticipated by City analysts. Meanwhile, it added that talks over a potential disposal of its Domains, Identity & Software business are continuing to progress.
The board said any transaction would deliver a value-maximising outcome in excess of the group’s current market capitalisation.
The AIM-listed internet group, in Monday's trading update, noted that gross revenue for the year is seen at around US$481.9 million, down from US$802.8 million a year earlier.
Net revenue, meanwhile, amounted to US$136.2 million, from US$187.5 million, and earnings (adjusted EBITDA) are expected to total US$42.7 million from US$91.9 million. Even so, gross margin improved to 28.3% from 23.4%, and adjusted operating cash flow came in at US$66 million.
The main drag on performance was Search, where the shift away from legacy monetisation channels cut revenue and profitability in the short term.
The firm noted that search revenue fell 59% to US$222 million and adjusted EBITDA slumped 84% to US$9 million, though the share of next-generation monetisation revenue in the segment climbed to 39.1% from 4.7%.
DIS ( Domains, Identity & Software) was steadier, with net revenue rising 3% to US$75.6 million and adjusted EBITDA up 10% to US$21.4 million, while Comparison revenue rose 4% to US$65.3 million.
"Team Internet's strongest performance in FY25 was delivered in the final quarter, following a year characterised by strategic transition within the Search segment and continued momentum in our core platforms," chief executive Michael Riedl
"Our core platforms remain robust. DIS and Comparison have delivered a combined EBITDA CAGR of 26% since 2023 and now generate approximately 80% of Group EBITDA, representing the higher quality of earnings within the Group. In Search, we are advancing a product evolution designed to position the business for greater resilience and long-term sustainability."
Riedl added: "our key performance indicators demonstrate continued strategic progress across the portfolio.
"Looking ahead, we view the year with confidence. Continued operational recovery, combined with disciplined capital allocation and potential strategic portfolio actions, creates opportunities to unlock and grow shareholder value in line with the Board's ongoing strategic focus."
Net debt narrowed to US$87.6 million at year-end from US$96.4 million, after US$6.9 million of shareholder distributions.