Team Internet H1 2025 presentation: Revenue falls 36% amid search monetization transition

Introduction & Market Context

Team Internet Group PLC (TIG) presented its H1 2025 results on September 1, 2025, revealing significant revenue and profit declines as the company navigates a strategic transformation of its search business. The company’s stock closed at $61.70 on August 29, down 2.06% for the day, and currently trades at approximately 6.4x earnings.

The presentation highlighted Team Internet’s ongoing transition from Google’s AdSense For Domains (AFD) to Related Search On Content (RSOC) monetization models, a shift necessitated by Google’s March 2025 decision to auto-opt advertisers out of the AFD program. This transition has substantially impacted the company’s financial performance in the short term while management positions for future growth.

Quarterly Performance Highlights

Team Internet reported gross revenue of $263.9 million for H1 2025, representing a 36% decline from $409.7 million in H1 2024. Net revenue fell 25% to $72.8 million, while adjusted EBITDA dropped 47% to $24.6 million. The company recorded an operating loss of $7.0 million, compared to an operating profit of $22.9 million in the same period last year.

As shown in the following financial performance highlights:

Despite these declines, the company maintained strong cash generation with operating cash flow at 109% of adjusted EBITDA. Net debt decreased slightly to $93.3 million, representing 1.7x trailing twelve-month adjusted EBITDA.

Team Internet operates through three business segments, each showing different performance trajectories:

Detailed Financial Analysis

The income statement reveals the extent of the revenue and profit decline, though the company highlighted improved gross margins of 27.6% compared to 23.8% in H1 2024. Operating expenses decreased by $0.8 million year-on-year, excluding foreign exchange impacts.

The company’s balance sheet shows total assets of $455.2 million, down 19% from H1 2024, with total equity declining 36% to $91.4 million. Despite these challenges, Team Internet maintained strong cash conversion metrics:

Strategic Initiatives

The most significant strategic shift is occurring in the Search segment, where Team Internet is transitioning from Google’s deprioritized AdSense For Domains model to a content-focused approach. This segment saw a 16% increase in visitor sessions but suffered a 47% decrease in revenue per thousand sessions. Notably, the share of next-generation monetization revenue increased from 4% to 24% year-over-year.

The company detailed its evolving monetization strategy, emphasizing the shift toward content-rich pages that improve user experience and attract new advertisers:

Meanwhile, the Domains, Identity & Software (DIS) segment showed resilience with slight revenue growth despite a 4% decrease in total domain years. The company is focusing on quality over quantity, with average revenue per domain year increasing 8% to $12.80.

The Comparison segment maintained stable performance with a 1% increase in visitor sessions and flat revenue per thousand sessions. The company highlighted early international expansion, with 5% of gross merchandise value now generated outside the DACH (Germany, Austria, Switzerland) region.

Forward-Looking Statements

Team Internet characterized 2025 as a transition year, with management expressing confidence in the company’s strategic repositioning and expectations for "renewed top-line growth in 2026." The presentation emphasized that the foundation has been set for future growth, with achievements across all segments despite the challenging financial results.

The company’s strategic focus remains on transforming its search business model, expanding internationally in the comparison segment, and enhancing value-added services in the domain business. Management highlighted that cash generation remains strong despite the profit decline, providing financial flexibility during this transition period.

While Team Internet faces significant short-term headwinds from the search monetization transition, the company’s diversified portfolio and strategic initiatives position it to potentially return to growth in 2026 if the transformation proves successful.

Full presentation:

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