NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (DIRECTLY OR INDIRECTLY) IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

FOR IMMEDIATE RELEASE           

31 March 2025

 Team Internet Group plc

("Team Internet" or the "Company" or the "Group")

Audited 2024 Annual Report

Notice of Annual General Meeting

Team Internet Group Plc (AIM: TIG, OTCQX: TIGXF), the global internet company that generates recurring revenue from creating meaningful and successful connections: businesses to domains, brands to consumers, publishers to advertisers, is pleased to announce its audited annual report for the financial year 2024 is now available on the Group's website at the following link: https://teaminternet.com/annual-interim-reports/. The annual report will shortly be posted to those shareholders who have opted to receive a hard copy.

The results for the financial year 2024 are in line with the Group's Trading Updates announcement issued on 24 March 2025. The Group remains confident in its ability to meet recently revised market expectations for 2025.

Financial summary

·    Gross revenue decreased by 4.1% to USD 802.8 million (FY2023: USD 836.9 million)

·    Net revenue (gross profit) decreased by 1.9% to USD 187.5 million (FY2023: USD 191.1 million), with gross margin increasing from 22.8% to 23.4%

·    Adjusted EBITDA⁽ⁱ⁾ decreased by 4.7% to USD 91.9 million (FY2023: USD 96.4 million), with adjusted EBITDA as a percentage of net revenue remaining close to 50% at 49.0% (FY2023: 50.4%)

·    Operating profit decreased by 82.1% to USD 8.2 million (FY2023 restated⁽ⁱⁱ⁾: USD 45.7 million), following USD 36.0 million of impairment charges primarily relating to the Group's Shinez I.O Ltd subsidiary, acquired in April 2024, without which operating profit would have been USD 44.2 million, 3.3% lower than FY2023

·    Due to the same impairment charges, a loss after tax of USD 17.7 million (FY2023 profit after tax restated: USD 25.1 million) was recorded

·    Adjusted EPS (diluted) decreased by 5.5% to USD 21.22 cents (FY2023 restated⁽ⁱⁱ⁾: USD 22.46 cents)

·    Adjusted operating cash flow increased by 7.0% to USD 99.1 million (FY2023: USD 92.6 million)

·    Adjusted operating cash conversion⁽ⁱⁱⁱ⁾ of 108% (FY2023: 96%)

·    Net debt^(iv) of USD 96.4 million (31 December 2023: USD 74.1 million, 30 June 2024: USD 109.9 million). Team Internet has continued to be cash generative in 2024, reducing net debt by USD 13.5 million in the second half of the year despite USD 12.0 million of shareholder distributions including payment of an interim dividend of 1 pence per share

·    Leverage increased to 1.2x adjusted EBITDA (31 December 2023: 1.0x)

·    Interest cover decreased to 5.9x (31 December 2023: 7.3x)

·    The directors do not propose a final dividend in respect of FY2024 as the Company rebalances short-term shareholder returns with deleveraging

Operational and corporate summary

·    The Group achieved record adjusted operating cash flow of USD 99.1 million

·    Acquisition of Shinez I.O Ltd ('Shinez') for an initial cash consideration of USD 31.8 million (net of cash acquired). Shinez has underperformed relative to expectations, primarily due to changes in its specific target markets. The restructuring plan for Shinez, which is now under new management, includes transitioning Shinez's business model from text-based to short-form video, aligning with consumer trends

·    In April 2024, the Group announced that its ordinary shares began trading on the OTCQX® Best Market ('OTCQX') under the symbol 'TIGXF'. OTCQX is the premier tier of OTC Markets where over 12,000 US and global securities trade. Trading on OTCQX will significantly enhance Team Internet's visibility and accessibility in the world's largest capital market

·    Despite a shifting digital landscape, which resulted in adjusted EBITDA declining 4.7%, Team Internet delivered record cash generation and maintained robust margins, proving the resilience of our model. Our ability to adapt and optimise ensures we remain well-positioned for future growth

·    Short-term recalibration is essential for long-term success. By focusing on high-quality revenue streams, AI-driven efficiencies, and strategic cost discipline, we are building a leaner, more resilient business primed for sustainable growth

·    2024 was a year of strategic transformation-expanding AI-driven monetisation, increasing direct advertiser relationships, and enhancing our tech stack to drive efficiency. Our Domains, Identity & Software and Comparison segments outperformed expectations, setting the stage for further expansion in 2025

Annual General Meeting

The Company also announces that its 2025 Annual General Meeting ("AGM") will be held at 09.00 BST on Monday, 28 April 2025 at the Company's registered office at 4th Floor, Saddlers House, 44 Gutter Lane, London, ECV 6BR.  The notice of AGM document will shortly be available on the Company's website at https://teaminternet.com/constitutional-documents-and-circulars/.

The Company is offering facilities for shareholders to attend by conference call to ask questions in real time should they wish to do so.

Shareholders will be able to follow the proceedings of the AGM over the online Investor Meet Company platform by registering in advance via the following link: https://www.investormeetcompany.com/team-internet-group-plc/register-investor  

Shareholders who already follow TEAM INTERNET GROUP PLC on the Investor Meet Company platform will automatically be invited.

Shareholders are invited to submit any questions in respect of the meeting for the Board to consider. Questions may be submitted in advance up until 09:00 BST the day before the meeting or during the meeting over the Investor Meet Company platform following registration, and the Board will aim to respond to any such questions relevant to the business of the meeting.

Shareholders taking part via the Investor Meet Company platform will not be able to speak or vote on the AGM resolutions. Shareholders are therefore strongly encouraged to exercise their voting rights by completing and submitting a Form of Proxy. It is highly recommended that Shareholders submit their Form of Proxy as early as possible to ensure that their votes are counted at the AGM. Shareholders are strongly encouraged to appoint the Chairman as your proxy to ensure that each Shareholder's vote will be counted in the event of restrictions on shareholders and proxies attending the AGM in person.

Michael Riedl, CEO of Team Internet, commented:

"With our audited 2024 results now confirmed, we can look back on a year of strategic realignment and operational resilience. Headwinds in the Search segment led to reduced earnings but record adjusted operating cash flow, improving margin quality, and outperformance in our DIS and Comparison segments underscore the strength of our diversified model.

As we continue the disciplined execution of our strategy in 2025, we remain focused on innovation, efficiency, and value creation - positioning Team Internet to return to double-digit EBITDA growth from 2026 onwards."

Enquiries

For further information, please contact:

Team Internet Group plc                                                                                              +44 (0) 203 388 0600

Michael Riedl, Chief Executive Officer

William Green, Chief Financial Officer

Zeus Capital Limited (NOMAD and Joint Broker)

Nick Cowles / James Edis (Investment Banking)                                                                 +44 (0) 161 831 1512

Dominic King (Corporate Broking)                                                                             +44 (0) 203 829 5000       

Berenberg (Joint Broker)                                                                                             +44 (0) 203 207 7800

Mark Whitmore / Richard Andrews

SEC Newgate (for media)                                                                                             +44 (0) 203 757 6880

Bob Huxford / Tom Carnegie / Harry Handyside                                 teaminternet@secnewgate.co.uk

⁽ⁱ⁾Earnings before interest, tax, depreciation, amortisation and impairment, non-core operating expenses, foreign exchange gains and losses, and share-based payment expenses

⁽ⁱⁱ⁾Information on prior period restatements was included in our Nine months ended 30 September 2024 interim report and is included in our Annual Report

⁽ⁱⁱⁱ⁾Adjusted operating cash conversion refers to the percentage of Adjusted EBITDA that is converted into operating cash in the period. Operating cash flows are adjusted for non-recurring working capital items, such as the settlement of acquisition costs included within the balance sheet of acquired entities. See note 9

^(iv)Includes cash (USD 88.3m), bank debt and prepaid finance costs (USD 184.9m) and hedging assets (USD 0.2m) as of 31 December 2024 (31 December 2023 cash (USD 92.7m), bank debt and prepaid finance costs (USD 166.6m) and hedging liabilities (USD 0.2m))

Forward-Looking Statements

This document includes forward-looking statements. Whilst these forward-looking statements are made in good faith, they are based upon the information available to Team Internet at the date of this document and upon current expectations, projections, market conditions and assumptions about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about the Group and should be treated with an appropriate degree of caution.

About Team Internet Group plc

Team Internet (AIM: TIG, OTCQX: TIGXF) creates meaningful and successful connections from businesses to domains, brands to consumers, publishers to advertisers, enabling everyone to realise their digital ambitions. The Company is a leading global internet solutions company that operates in two highly attractive markets: domain name management, identity and software solutions (DIS segment) and high-growth digital advertising (Comparison and Search segments). The DIS segment is a critical constituent of the global online presence and productivity tool ecosystem, where the Company serves as the primary distribution channel for a wide range of digital products. The Company's Comparison and Search segments create privacy-safe and AI-generated online consumer journeys that convert general interest online media users into confident high conviction consumers through advertorial and review websites. The Company's high-quality earnings come from subscription recurring revenues in the DIS segment and revenue share on rolling utility-style contracts in the Comparison and Search segments.

For more information please visit: www.teaminternet.com  

MANAGEMENT COMMENTARY ON GROUP PERFORMANCE

Introduction

We reported gross revenue of USD 802.8 million and net revenue of USD 187.5 million, with adjusted EBITDA of USD 91.9 million.

While Search net revenue declined by 14.6% due to product evolution and cyclical weakness in click prices, our Domains, Identity & Software (DIS) and Comparison segments outperformed expectations, with both segments delivering growth in the year and together contributing 51.2% of net revenue in 2024, up from 43.9% in 2023. These segments remain poised for further expansion in 2025.

This shift underscores the increasing resilience of our business model, as we continue to diversify revenue streams and strengthen our position across all segments.

Performance review

The Group's financial performance during the period is reflected in the key financial metrics listed below:

Segment Highlights

The Group committed to providing greater information by reporting on the profitability of each reporting segment, as well as separating out our Comparison business, which has grown so favourably that it now qualifies as a separate reporting segment.

The Group's new reporting segments performed as follows during financial years 2023 and 2024:

Notes for new reporting segments

^A Comprises the former Online Presence segment and the Voluum SaaS business

B Comprises VGL Publishing AG and its affiliates and businesses, operating product comparison websites such as Vergleich.org

^C Represents the former Online Marketing segment, less Comparison and Voluum

Outlook

Current analyst consensus for 2025 adjusted EBITDA is between USD 60 million and USD 62 million, with a return to double-digit Group earnings growth from 2026 onwards.

We look forward to providing our next update when the Company publishes its results for the six months ended 30 June 2025 around the end of August 2025.

Michael Riedl

Chief Executive Officer

·      Share capital represents the nominal value of the Company's cumulative issued share capital.

·      Share premium represents the cumulative excess of the fair value of consideration received for the issue of shares in excess of their nominal value less attributable share issue costs and other permitted reductions. The Company's share premium was cancelled in full during 2023.

·      Merger relief reserve represents the cumulative excess of the fair value of consideration received for the issue of shares in excess of their nominal value less attributable shares issue costs and other permitted reductions, where the consideration for the shares in another company includes issued shares, and 90% of the equity is held in the other company

·      Share-based payment reserve represents the cumulative value of share-based payments, excluding related employment taxes, recognised through equity and deferred tax assets arising thereon.

·      Cash flow hedging reserve represents the effective portion of changes in the fair value of derivatives.

·      Foreign exchange translation reserve represents the cumulative exchange differences arising on Group consolidation.

·      Retained earnings represents the cumulative value of the profits not distributed to Shareholders but retained to finance the future capital requirements of the Group.