Team Internet Reports Profit in H1 2024, Driven by Organic Growth and Strategic Investments

3 min read | August 12, 2024 03:01 AM PDT | By Team Kalkine Media

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Team Internet Reports Profit in H1 2024, Driven by Organic Growth and Strategic Investments — Image source: Phongphan

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Team Internet Group Plc (LSE:TIG, OTCQX: TIGXF), a global internet company known for generating recurring revenue through successful business-to-domain, brand-to-consumer, and publisher-to-advertiser connections, has announced its unaudited financial results for the six months ending June 30, 2024 ("H1 2024"). The results reflect solid growth across multiple financial metrics, driven by the company's strategic investments and focus on earnings growth.

Financial Performance Highlights

Team Internet's financial performance in H1 2024 demonstrates the company's resilience and ability to generate consistent revenue growth in a competitive market. Key financial highlights include:

Organic Gross Revenue Growth: The company achieved approximately 9% organic gross revenue growth for the trailing twelve months ending June 30, 2024 ("TTM 2024"). This reflects the company's ability to expand its revenue base organically, without relying on acquisitions or one-time gains.
Gross Revenue: Team Internet's gross revenue for H1 2024 increased by 3% to USD 409.7 million, compared to USD 396.4 million in the same period in 2023. This growth underscores the company's ability to maintain and expand its revenue streams in a challenging market environment.
Net Revenue (Gross Profit): The company reported a 7% increase in net revenue, reaching USD 97.7 million in H1 2024, up from USD 91.2 million in H1 2023. The gross margin improved from 23.0% to 23.8%, representing a relative 3.5% uplift, which highlights the company's focus on profitability.
Adjusted EBITDA: Adjusted EBITDA increased by 4% to USD 46.6 million, up from USD 44.6 million in H1 2023. The EBITDA margin also saw a slight increase from 11.3% to 11.4%, demonstrating strong operational efficiency and profitability.
Operating Profit: Operating profit rose by 13% to USD 22.9 million, compared to USD 20.2 million in the previous year. This significant increase reflects the company's effective cost management and strategic investments in key growth areas.
Profit Before Tax: Profit before tax increased by 8% to USD 14.4 million, up from USD 13.3 million in H1 2023. This growth is indicative of the company's strong financial health and ability to generate sustainable profits.
Profit After Tax: Profit after tax saw a 4% increase, reaching USD 9.8 million, compared to USD 9.4 million in the same period last year. This growth, while modest, continues to build on the company's solid foundation of profitability.

Strategic Initiatives and Future Outlook

Team Internet's strong financial performance in H1 2024 can be attributed to its strategic focus on product innovation, vertical integration, and international expansion. The company has made significant investments in these areas, positioning itself for continued success in the global market.

The Directors of Team Internet have expressed confidence in the company's ability to meet market expectations for the full year. Despite prioritizing earnings growth over top-line growth, the company has managed to maintain a robust 9% organic revenue growth on a pro forma basis for TTM 2024. The healthy adjusted EBITDA conversion rate of 48%, slightly down from 49% in H1 2023, demonstrates the company's commitment to maintaining strong profit margins while investing in future growth.

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