29
January 2024
Team Internet Group
plc
("Team
Internet" or the "Company", or the "Group")
FY 2023 Trading
Update
Achieved record revenue and
Adjusted EBITDA in 2023
Team Internet Group plc (AIM: TIG), 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 trading update for the full year 2023.
The Company now expects to report record gross
revenue of c.USD 835 million, net revenue (gross profit) of
c.USD 190 million and adjusted EBITDA1 of c.USD 96
million for the financial year 2023. These represent increases of
c.15%, c.7% and c.12% respectively versus the prior year, ahead of
the recently upgraded market consensus2 for 2023.
Adjusted for acquisitions and FX, year-on-year organic
growth3 for 2023 was
c.12%.
Gross revenue growth breaks out as follows
between the Company's two reporting segments:
Segment
|
2023 Gross
revenue
|
2022 Gross
revenue
|
Growth
|
Online Marketing
|
USD 656 million
|
USD 575 million
|
14%
|
Online Presence
|
USD 179 million
|
USD 154 million
|
16%
|
Growth has been delivered almost equally (on a
percentage basis) by both reporting segments, Online Marketing and
Online Presence.
Net Debt4 was c.USD 74
million as at 31 December 2023 compared to USD 57 million
as at 31 December 2022, following USD 40 million of share
repurchases, USD 4 million payment of dividends and USD 22 million
settlement of deferred contingent consideration during 2023.
Adjusted operating cash conversion was near 100%.
CEO, Michael Riedl, stated, "As
we reflect on 2023, I am proud to announce that Team Internet has
not only met, but exceeded the ambitious goals we set at the
beginning of the year. The Company's investment in innovation led
to the launch of more new products than ever before. The Company
also signed up a record number of new demand and supply side
partners.
Our financial performance in 2023
stands as a testament to our strategic vision and operational
efficiency. We improved our Adjusted EBITDA-to-Gross Profit ratio
from 48% to 51%, reflecting our strong financial discipline and
focus on profitability.
The concurrent rise of social media
and user-generated content as dominant forms of online engagement,
coupled with the increasing emphasis on data privacy, uniquely
positions our Company. This landscape not only aligns with but
actively propels our AI-based contextual advertising solutions. As
such, we anticipate that these concurrent trends will significantly
bolster our performance and help us outperform in any
cycle."
Notice of Results
The Company confirms that it
will publish its audited annual report for the financial year
ending 31 December 2023 on Monday, 18 March 2024.
On the day of results there will be
a webinar / conference call for equity analysts at 9:30am, UK time,
and for private client investment managers at 11:30am, UK time.
Both events will be hosted by CEO Michael Riedl and CFO Billy
Green. To register for either event please contact Harry
Handyside at teaminternet@secnewgate.co.uk where further
details will be provided.
Furthermore, the company will hold
an Investor Meet Company session at 1pm on 18 March 2024. Investors
can sign up to Investor Meet Company for free to meet Team Internet
Group Plc via:
https://investormeetcompany.com/team-internet-group-plc/register-investor
Investors who already
follow Team Internet Group Plc on the Investor Meet
Company platform will automatically be invited. Questions can
be submitted pre-event via your Investor Meet Company dashboard up
until 9am the day before the meeting or at any time during the live
presentation.
The Company will also present at the
Berenberg UK Corporate Conference in Hertfordshire, UK, on 19 and
20 March 2024.
1 Parent, subsidiary and
associate earnings before interest, tax, depreciation,
amortisation, non-cash charges and non-core operating expenses.
Non-core operating expenses include items related primarily to
acquisition, integration and other related costs, which are not
incurred as part of the underlying trading performance of the
Group, and which are therefore adjusted for, in line with Group
policy.
2 Analyst consensus of
revenue and adjusted EBITDA for the financial year ending 31
December 2023 as of 28 January 2024 and last updated on 16
January 2024 is USD 820.2 million (analyst range of USD 782.9
million to USD 839.4 million) and USD 93.9
million (analyst range of USD 90.9 million to USD 97.9
million) respectively.
3 Organic growth is calculated
based on trailing twelve-month pro-forma revenue adjusted for
acquired revenue, constant currency FX impact and non-recurring and
non-cash items (c.USD 837 million and c.USD 744 million for
financial years 2023 and 2022 respectively).
4 Includes gross cash,
interest-bearing debt and prepaid finance costs.
-Ends-
For
further information:
Team Internet Group Plc
Michael Riedl, Chief Executive
Officer
William Green, Chief Financial
Officer
|
+44 (0) 203 388
0600
|
|
Zeus (NOMAD and Joint Broker)
Nick Cowles / Jamie Peel / James
Edis (Investment Banking)
Dominic King (Corporate
Broking)
|
+44 (0) 161 831 1512
+44 (0) 203 829 5000
|
Berenberg (Joint Broker)
Mark Whitmore / Richard Andrews /
Alix
Mecklenburg-Solodkoff
|
+44 (0) 20 3207 7800
|
SEC
Newgate (for Media)
Bob Huxford / Alice Cho /
Harry Handyside / Tom Carnegie
|
+44 (0) 203 757 6880
teaminternet@secnewgate.co.uk
|
About Team Internet Group plc
Team Internet (AIM: TIG) 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: high-growth digital advertising (Online Marketing segment)
and domain name management solutions (Online Presence segment). The
Company's Online Marketing segment creates 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 Online Presence 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 high-quality earnings come from subscription recurring
revenues in the Online Presence segment and revenue share on
rolling utility-style contracts in the Online Marketing segment.
For more information please
visit: www.teaminternet.com