Team Internet Group PLC: A Digital Powerhouse Unleashed!

Ladies and gentlemen, buckle up! We've got a digital dynamo on our hands with Team Internet Group PLC's Financial Year 2024 Trading Update. This isn't just any company; it's a global internet titan generating recurring revenue from creating meaningful and successful connections. Let's dive in and see what makes this stock a must-own!

First things first, the numbers are in, and they're impressive! For the financial year 2024, Team Internet expects to report gross revenue of c.USD 803 million, net revenue of c.USD 188 million, and adjusted EBITDA of c.USD 92 million. That's right, folks! We're talking about a company that's not just surviving but thriving in the digital landscape.

Now, let's break down the segments. The Domains, Identity & Software (DIS) segment delivered above-market revenue growth of 7%, with expanding margins driving a 9% increase in net revenue and a 46% improvement in EBITDA. This segment is all about efficiency gains and operational leverage, folks! They've consolidated their subscription-based platforms and Software-as-a-Service (SaaS) businesses into a streamlined offering. That's what I call smart business!

But wait, there's more! The Comparison segment demonstrated exceptional performance, with revenue growth of 43% and EBITDA increasing by 89% year-on-year. This segment benefits from an AI-native platform, which has enabled faster internationalisation, including new launches in Italy, Spain, and a relaunch in France. More country launches are scheduled for the current year. This is a segment on fire, folks!

Now, let's talk about the Search segment. It faced a challenging market in the second half of 2024, leading to a 15% contraction in net revenue. But don't worry, folks! The Group has prioritised improved customer experience and brand trust over volume growth to strengthen long-term sustainability. This is a long-term play, and it's paying off!



Capital allocation and financial position? Check! Net Debt was c.USD 97 million as at 31 December 2024 compared to USD 74 million as at 31 December 2023. This is after the impact of USD 21 million of share repurchases, USD 10 million payments of dividends, and USD 32 million of acquisition consideration, net of cash acquired, during 2024. The Group expects to record a non-cash impairment charge in respect of the acquisition of Shinez I.O Ltd. ("Shinez") in its audited FY 2024 accounts. Legal action against the sellers of Shinez is ongoing. The restructuring plan for Shinez, which is now under new management, includes transitioning Shinez' business model from text-based to short-form video, aligning with consumer trends. This is a company that's not afraid to make tough decisions and adapt to the market!

Adjusted operating cash flow reached a record high of c.USD 95 million, representing an adjusted operating cash conversion of 103%. This reflects prudent management of working capital. CEO Michael Riedl stated, "We are reflecting on a year of significant developments for Team Internet. Despite modest contractions in Group revenue and EBITDA, we ended the year with record operating cash flow and the most balanced earnings composition in our history. This underscores the resilience and potential of our diversified business model."

So, what's the bottom line? Team Internet Group PLC is a digital powerhouse with a diversified business model, strong cash flow, and a strategic focus on AI-driven monetization and cost efficiency. This is a company that's not just surviving but thriving in the digital landscape. You need to own this stock, folks! It's a no-brainer!