Team Internet Group PLC Announces FY 2023 Trading Update

Team Internet Group plc
("Team Internet" or the "Company", or the "Group")

FY 2023 Trading Update
Achieved record revenue and Adjusted EBITDA in 2023

LONDON, UK / ACCESSWIRE / January 29, 2024 / 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

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SOURCE: Team Internet Group PLC

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