Team Internet Group (LSE:TIG) reported first-half 2026 results in line with market expectations, with revenue declining as legacy AdSense for Domains income reduced to an immaterial level. Despite the lower top-line performance, the company delivered stronger profit margins, supported by growth across its DIS and Comparison businesses and improving performance within its Search division.
Management said the Search business returned to profitability in June following the completion of a major operational transition and cost optimisation programme, reinforcing confidence in a stronger performance during the second half of the year.
Margin improvement offsets revenue decline
Gross revenue for the first half totalled US$179.1 million, while adjusted EBITDA came in at US$19.5 million.
Although earnings declined year-on-year, net revenue margins improved significantly to 34.1%, reflecting the changing mix of the business and the benefits of operational efficiencies. The company also noted that its financial performance remains weighted towards the second half of the financial year, in line with normal seasonal trends.
Strategic review and deleveraging remain priorities
Net debt increased to US$117.5 million during the period, primarily as a result of tax settlements and working capital movements rather than additional borrowing.
The board expects leverage to reduce significantly during the second half as cash generation improves. At the same time, Team Internet continues to progress its strategic review of the DIS division while also managing changes to its board, including the retirement of non-executive director Claire MacLellan.
Management believes these initiatives will help strengthen the group’s long-term operating model and capital position.
Financial outlook remains mixed
The company’s financial outlook continues to reflect declining revenue, wider losses and higher leverage following a reduction in shareholder equity. However, the business continues to generate positive cash flow, albeit at lower levels than previously.
Technical indicators remain moderately supportive over the near term, while valuation continues to be affected by negative earnings despite the company maintaining a modest dividend yield.
About Team Internet Group
Team Internet Group is a global internet services company focused on online identity and digital discovery solutions. The business operates through two principal segments: DIS, which provides domain name management, identity and software services, and its Comparison and Search divisions, which deliver digital advertising solutions. The group generates a significant proportion of its income through recurring subscriptions and revenue-sharing arrangements with business and consumer customers worldwide.
Leave a Reply