Team Internet announced that it is on track to meet its full-year expectations, driven by steady earnings growth and a significant boost from a major acquisition last month.
The AIM-listed firm’s pretax profit reached $7.1m (£5.7m) for the first quarter of 2024, marking a 65 per cent increase from the same period last year. Meanwhile, its operating profit rose by 44 per cent to $11.1m (£8.9m).
Team Internet, which emphasises earnings growth over top-line growth, experienced organic revenue growth of approximately eight per cent over the 12 months ending 31 March 2024. Gross revenue increased by one per cent to $195.9m (£156.4m) year-on-year, and net revenue rose by four per cent to $47.6m (£38m). The firm’s gross margin improved to 24.3 per cent from 23.5 per cent a year ago. Its adjusted earnings before tax (EBITDA) also saw a four per cent increase to $22.2m (£17.7m).
However, Team Internet’s adjusted operating cash conversion decreased to 80 per cent from 94 per cent year-on-year. The company attributed this decline to cash receipts from a “significant business partner” being collected in April rather than March, due to Easter public holidays coinciding with the end of the quarter. It expects cash conversion to normalise closer to 100 per cent for the remainder of 2024.
Michael Riedl, chief executive of Team Internet, stated on Monday: “I am pleased to report that our focus on managing earnings and cash flow holistically continues to deliver substantial benefits. This remains true as we adjust the growth of our Online Marketing sector to align with our enhanced focus on sustainability and customer experience.”
Last month, Team Internet acquired online marketing business Shinez for $43.2m (£34.5m). Riedl noted that following the merger, Team Internet now has “a robust platform addressing the ‘Awareness’ stage of the advertising funnel, complementing our existing offerings, TONIC and VGL, which focus on ‘Consideration’ and ‘Conversion’, respectively”.
“We now undoubtedly hold the most comprehensive product offering among our peers,” he added.
Team Internet plc (LON:TIG) – formerly CentralNic – is a global internet solutions group headquartered in London. Leveraging world-class technologies and industry leading teams, they have been transforming the way organisations, brands, publishers and consumers connect and thrive online.
