Team Internet Group Beats FY 2025 Forecasts; Strategic DIS Segment Disposal Advances

FY25 trading update: beats forecasts with fatter margins and strong cash

Team Internet Group has delivered an FY25 that lands above or at the top end of City expectations. Management says FY26 trading is in line with market expectations, which helps keep a floor under sentiment.

The year was a transition, especially in Search, but gross margin improved and cash generation was solid. The company also nudged net debt down while paying shareholders, which is exactly the sort of discipline investors want to see.

Headline numbers and how they stack up against consensus

All figures are unaudited. “Net revenue” here is gross profit, and “adjusted EBITDA” strips out non-core items such as share-based payments and FX.

Standouts: net revenue came in above the top of the published analyst range, adjusted EBITDA was close to the top end, and margins improved despite the Search reset.

Segment performance: DIS resilient, Comparison steady, Search in overhaul

Management called FY25 a transition year, with the biggest change inside Search as the business moves from legacy monetisation to next-generation solutions like Related Search on Content and commerce media.

From the CEO: DIS and Comparison together have delivered an EBITDA CAGR of 26% since 2023 and now generate approximately 80% of Group EBITDA. That tells you where the higher-quality earnings sit today.

KPIs underline quality shift and diversification

• DIS: Processed domain registration years fell 7% to 12.3 million, but average revenue per domain year rose 2% to USD 12.64. Value-added services revenue mix increased to 17.8% (up 1.7 percentage points), a healthy nudge towards stickier, higher-margin business.
• Comparison: Visitor sessions decreased 10% to 169.4 million, yet revenue per thousand impressions ticked up 3% to USD 257. Notably, GMV outside the DACH region jumped to 4.8% from 0.4%, signalling early-stage international traction.
• Search: Visitor sessions fell 19% to 5.5 billion and revenue per thousand impressions dropped 51% to USD 34. The bright spot is mix: next-generation monetisation rose from 4.7% to 39.1% of the segment, a rapid pivot that should improve resilience over time.

Margins, cash and balance sheet: the quiet positives

Gross margin lifted from 23.4% to 28.3%, a meaningful improvement given the revenue reset. Adjusted operating cash conversion of 155% (from 108%) shows a disciplined grip on working capital and costs.

Net debt was reduced to USD 87.6 million at year-end from USD 96.4 million, even after USD 6.9 million of shareholder distributions. The company remains cash generative, which gives optionality for investment and strategic moves.

Strategic review: DIS disposal talks moving forward

Discussions to dispose of the DIS segment are “progressing well”. The Board says it remains confident that any transaction would deliver a value-maximising outcome in excess of the Group’s current market capitalisation. If achieved, that would be a powerful validation of the embedded value in the portfolio.

Price, structure and timing are not disclosed. Investors should expect further updates as talks advance.

What this means and why it matters

• Beat where it counts: Net revenue landed above the analyst range and EBITDA was near the top, despite Search headwinds. That supports the “strongest in Q4” message from management.
• Quality mix improving: More value-added services in DIS and a faster shift to next-gen monetisation in Search indicate a higher-quality revenue base over time.
• Cash discipline: 155% cash conversion and lower net debt give the Group room to manoeuvre through the Search transition and the strategic review.
• Potential catalyst: A DIS sale at a value above the Group’s market cap would be a major re-rating event. However, terms are unknown and not guaranteed.

Jargon buster

• Adjusted EBITDA: a profit measure before interest, tax, depreciation and amortisation, and excluding items management views as non-core. Useful for judging underlying performance.
• Net revenue (gross profit): revenue after traffic acquisition or direct costs. It is a better guide to unit economics than gross revenue in ad-driven businesses.
• Cash conversion: how effectively EBITDA turns into operating cash flow. Above 100% is typically strong.

Risks and watchpoints

• Search transition: RPM fell 51% to USD 34 and sessions declined 19%. Execution risk remains until next-generation monetisation fully scales.
• DIS sale uncertainty: Valuation, timing and conditions are not disclosed. Transaction risk and post-sale shape of the Group are open questions.
• FY25 figures unaudited: The audited annual report is still to come.

Catalysts to monitor in 2026

• Audited FY25 results and any changes to figures disclosed here.
• Further updates on the DIS disposal, including price, structure and timing.
• Evidence of Search recovery as next-gen monetisation grows beyond the current 39.1% mix.
• Cash generation and net debt trajectory, given 155% cash conversion in FY25.
• Performance of Comparison outside DACH after GMV ex-DACH rose to 4.8%.

My take

This is a cleaner update than many expected. The company beat where it mattered, expanded margins and threw off cash while reshaping Search. If management can secure a strong price for DIS and keep the Search pivot on track, there is a plausible path to rerating.

The flip side: Search still drags, and the DIS sale terms are the swing factor. For now, the balance of evidence is positive, with Q4 momentum and cash conversion doing the heavy lifting.