Team Internet Group (LON: TIG), the London-listed internet company behind domain, comparison and search advertising businesses, published unaudited interim results earlier today confirming it swung back to a group operating profit for the first time in two years.
Shares stood at 42.5p in early trade, up 1.19% from Friday’s close of 42p, within a 52-week range of 31p to 65p. The muted move suggests the market saw the update as broadly in line with expectations rather than a surprise.
Gross revenue fell 32% to $179.1m from $263.9m a year earlier, but the decline was largely deliberate: the Search division has been winding down its old AdSense-for-Domains model in favour of a new one, shrinking that segment’s top line while Search itself returned to profitability in June. Management said the Domains, Identity & Software (DIS) unit, which distributes domain names and registry services, and the Comparison business both grew over the period.
That mix shift helped the group post a $3.0m operating profit, reversing a $7.0m loss a year earlier, even as adjusted EBITDA, underlying profit before interest, tax and one-off costs, dipped to $19.5m from $24.6m. The loss after tax narrowed to $6.0m from $14.1m, while adjusted diluted earnings per share fell to 3.24 cents from 5.93 cents. Chief executive Michael Riedl said: “Trading in the first half was in line with market expectations: DIS grew strongly, Comparison is growing into our second earnings pillar, Search returned to profit in June, and the Group delivered its first half-year operating profit in two years.”
Net debt climbed to $117.6m from $87.6m, driven by a one-off working-capital hit and a large tax payment, though management guided to a significant reduction in the second half.
The bigger swing factor for the shares remains the strategic review of Domains, Identity & Software. Management said the process is at an advanced stage, expected to be concluded around year-end, with a valuation above $160m still anticipated — though completion is not yet certain.