Team Internet Group (TIG) Q3 2024 earnings summary

Executive summary

• Team Internet operates in Digital Audience Matching (Online Marketing) and Digital Identity Solutions (Online Presence), both with recurring revenue models and global reach.

• Gross revenue for YTD Sep 2024 was $615.1m, up 1% year-over-year, with net revenue at $143.6m, up 4%.

• Adjusted EBITDA reached $70.1m (+2%), and adjusted EPS was 16.83 cents (+7%).

• The company maintains a strong cash position and robust cash conversion, supporting both investment and shareholder returns.

• Profit after tax declined 7% to $11.9m, mainly due to higher amortisation charges.

Financial highlights

• Gross revenue: $615.1m (+1% YoY); net revenue: $143.6m (+4% YoY); adjusted EBITDA: $70.1m (+2% YoY).

• Operating profit was $31.2m, nearly flat year-over-year; profit after tax was $11.9m, down 7%.

• Gross margin improved to 23.3% from 22.6% YoY; adjusted EBITDA margin stable at 49%.

• Net debt stood at $99.7m, down from $109.9m at 30 June 2024, reflecting strong cash generation and outflows for acquisitions, buybacks, and dividends.

• Cash conversion from operations was 91% of adjusted EBITDA; adjusted free cash conversion was 55%.

Outlook and guidance

• Directors expect record profits in 2024 and 2025, though at more moderate growth rates.

• Adjusted EBITDA for 2024 is projected at approximately $97m.

• The company is fully funded to execute its strategy, balancing investment and cash returns to shareholders.

• Core businesses remain resilient; Shinez acquisition yet to contribute to EBITDA but operational improvements underway.

• Focus on maximising shareholder value through balance sheet optimisation, buybacks, dividends, and asset review.