Team Internet Reports H1 2025 Results: Revenue Decline Offset by Resilient Cash Flow and Strategic Shifts

The group reports net current liabilities of USD 12.8 million at 30 June, but this includes USD 25.9 million of non-cash items such as deferred revenue and payments on account. Excluding those, net current assets are USD 13.1 million. A contingent tax liability of USD 5.2 million has been disclosed – the risk is not considered probable but is not remote either.

Strategy and outlook: what management is guiding for H2 2025

Management describes H1 as a period of strategic transformation, with most benefits to appear through H2 2025. The outlook by segment is clear:

• DIS – continued double-digit EBITDA growth, supported by an unprecedented number of net contract wins in H1 2025 and full benefits from platform consolidation rolling through H2.
• Comparison – normal second-half weighting expected. As international portals mature, the segment should shift from investment mode to cash contribution, a pattern already shown in France.
• Search – pivoting social-to-search workflows from AFD to RSOC, plus scaling commerce media and viral video solutions. Next-generation monetisation grew 160% year-on-year and management sees early signs of net revenue growth compared to late H1 2025.

The board continues to review options to maximise shareholder value, including capital allocation and asset ownership, while prioritising sustainable growth and margin improvement.

My take: positives and pressure points

On the positive side, the cash engine is intact. A 109% cash conversion rate and a lower net debt figure in a transition year signal good control. DIS looks like a dependable anchor – winning the .co registry for a decade is a strong proof point. Comparison’s internationalisation is gathering pace with clear milestones: France already profitable and others close behind.

The pressure remains in Search, where the industry shift is real. AFD RPM down 46% is painful, but the pivot is gaining traction, with RSOC and other next-gen formats already at 24% of segment revenue and growing quickly. The margin rebuild will take “several quarters” by management’s own description, so patience is required.

Non-core costs and FX dragged reported earnings, and leverage ticked up as TTM EBITDA fell. Those are watchouts. The contingent tax issue of USD 5.2 million is not a show-stopper, but it is another item to track.

Key watch items for investors in H2 2025

• RSOC mix and monetisation – does next-generation revenue keep rising from 24%, and do campaign margins improve as user engagement beds in.
• DIS contract ramp – timing and revenue contribution from the new wins, including the .co TLD, and whether double-digit EBITDA growth is delivered.
• Comparison seasonality and international breakeven – France should stay profitable, while Italy and Spain aim for breakeven; the new UK portal’s early traction will be informative.
• Cash discipline – sustaining strong cash conversion while investing in product and expansion.
• Leverage path – progression back towards lower leverage as profitability recovers, and interest cover staying comfortable.
• Resolution of the disclosed tax contingency – no guidance on timing, so any update will matter.

Bottom line: a deliberate reset with improving signals

H1 2025 shows a business taking its medicine: lower reported profits today to modernise the ad stack and sharpen the cost base. The numbers are not pretty, but the cash tells a more resilient story. If RSOC adoption continues to accelerate, DIS keeps compounding with sticky infrastructure revenues, and Comparison’s international rollout turns from drag to driver, the ingredients are there for recovery through H2 and into 2026.

I see a balanced risk-reward for patient investors. Execution in Search is the swing factor, but there is visible progress, a stronger contract book in DIS, and solid liquidity to navigate the rest of 2025.