Team Internet Group (TIG) [LON:TIG], formerly known as CentralNic LON:CNIC, the AIM-listed software and computer services company published its unaudited financial results for the six-months to end-June today (12th August).
The London-based company changed its name last October and has had a good half-year with increases in revenue and in profits. The digital marketing company was established in 1996, and its main purpose is to use the internet to help companies grow their business.
- Could EngageXR be a good option for investors in 2025?
- TruFin rebounds from Lloyds Bank contract loss
- Quadrise shares up over 300% in two-months
TIG creates websites, advises companies on their digital marketing strategy and sets up online stores for them. The company started up as a web services company and then developed its own proprietary software platforms for the global distribution of domain names. In the last decade, the company also started to offer services in marketing, policy and online abuse management.
The company reported that its net revenue had increased 7% year-on-year to USD97.7m (GBP76.5m) with operating profit up 13% to y-o-y to USD22.9m, adjusted earning up 4% to USD46.6m and profit before tax of USD14.4m, an 8% improvement y-o-y.
TIG’s year-on-year growth ahead of expectations
Michael Riedl, Team Internet’s chief executive said in a statement to the market this morning: “Team Internet has delivered another strong set of trading results for the first half of the year. Year-on-year growth in trading results for 2Q24 was slightly ahead of that seen in 1Q24, with growth across revenue, net revenue and adjusted EBITDA, demonstrating momentum as we move into the second half of the year.”
In April the digital marketing business acquired Shinez for USD43.2m. Shinez was an online marketing business that specialized in creating and promoting engaging content across various platforms like social media, search engines, and native networks. They owned popular websites in different niches, such as fashion, food, and travel and Riedl said at the time: “With Shinez joining Team Internet, we now have 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.”
As previously reported, TIG focuses on digital advertising and domain name management, in addition to associated products and services, including web hosting and domain parking. The firm aims ‘to enable the global online economy to realise its full potential by providing the world’s most popular platforms and connecting customers with the tools to achieve their online aspirations’.
- Stock recommendations by Bridgewise. Try a free trial of Data+ for a deeper look.
Team Internet dividends and buybacks
On the back of its positive results, TIG is expecting to declare an interim dividend of 1p/share (not a huge amount of money, but it’s not often that ‘growthy’ digital/online business offer up any dividends at all). The group successfully completed its first share buyback programme of GBP4m worth of ordinary shares in January 2023, and a second share buyback programme commenced in May 2023 and was increased to GBP 34m worth of ordinary shares in July 2023.
The company opened the week (12th August) at 187.26p. The company’s shares are up 47.4% over one-year and up 53.5% year-to-date. TIG’s shares have ranged between 112.34p and 207.5p over a 52-week period. The company has a market capitalisation of GBP492.5m.
Dan Ridsdale, an analyst for Edison said in a May research note: “On our revised estimates, Team Internet trades at an EV/EBITDA multiple of 5.2x and a P/E of 7x. On a fundamental basis, we believe that this remains too low for a business with Team Internet’s track record, prospects and cash generation. It is at a slight discount to global ad-tech peers to the online marketing business and a very significant discount to the online presence peers.”
