Team Internet Group (TIG) Q2 2024 earnings summary

Executive summary

• Operates in Digital Audience Matching and Digital Identity Solutions with recurring revenue and global reach.

• Achieved year-on-year growth in all key financial metrics for H1 2024, including 7% net revenue growth and 13% increase in operating profit.

• AI integration drives productivity, customer engagement, and product innovation.

• Strategic acquisitions and operational efficiency supported margin improvement and profitability.

• Directors remain confident in meeting full-year market expectations.

Financial highlights

• Gross revenue rose 3% year-over-year to $409.7m; net revenue up 7% to $97.7m.

• Adjusted EBITDA increased 4% to $46.6m; operating profit up 13% to $22.9m.

• Adjusted EPS grew 14% to $11.07; profit after tax up 4% to $9.8m.

• Net debt at $109.9m, reflecting acquisitions, share buybacks, and dividend payments.

• Cash conversion remained robust at 87% of adjusted EBITDA.

Outlook and guidance

• Confident in meeting FY24 market expectations: revenue consensus at $957.6m and adjusted EBITDA at $108.9m.

• Analyst forecasts for FY24: gross revenue $931m–$984m, adjusted EBITDA $105m–$115m.

• Maintains robust 9% organic revenue growth on a pro forma TTM basis.

• Fully funded to invest in growth and return cash to shareholders; interim dividend of 1.0p per share planned.

• Strategic focus on product innovation, vertical integration, and international expansion.