Q&A

Team Internet Group is a global internet company that makes its money through domain name distribution, online product comparison and AI-driven customer digital marketing solutions. It has three divisions: Domains, Identity and Software (DIS), Comparison and Search. In its 7 September 2026 interim results, the company said its earnings rest on recurring subscriptions in DIS and on success-based commissions in Comparison and Search, earned under revenue-share arrangements, mainly when consumers complete purchases. DIS, the company's core asset, is the subject of a strategic review that includes a potential divestment. A 10-year deal to run the .co top-level domain improves DIS's growth prospects; Team Internet and Equipo PuntoCo retain 8% of .co gross revenues. Search matches audiences with advertisers across platforms not natively integrated. Comparison includes Vergleich (VGL) in Germany, and its core market is DACH (Germany, Austria and Switzerland). In H1 2026, Comparison was particularly strong and is increasingly emerging as the key growth pillar of the post-DIS business.

Team Internet Group's gross revenue was $481.9m in FY25, down from $802.8m in FY24. This was almost entirely due to Google's discontinuation of AdSense for Domains (AFD), which was the Search division's largest platform, which has not been offset by uptake of newer platforms, such as Related Search on Content (RSoC). Excluding Search, the group's FY25 gross revenue would have been $259.9m, down 2.2% year-on-year, while net revenue would have increased 0.4% to $96.4m, highlighting the relative resilience of the remaining businesses. We place little weight on gross revenue as a valuation metric due to the significantly different margin profiles between divisions. Domains, Identity and Software (DIS) net revenue increased 3% to $75.6m in FY25 while Comparison net revenue fell 7% to $20.8m in FY25. We forecast revenue of $386.0m in FY26 and $412.1m in FY27.

Team Internet Group's latest results, for H1 2026, showed combined EBITDA up 37% in its DIS and Comparison divisions. The results were in line with the July trading update and encouraging overall. Domains, Identity and Software (DIS) net revenue rose 8% to $40.8m and adjusted EBITDA 28% to $13.7m, while Comparison net revenue rose 38% to $12.4m and adjusted EBITDA 56% to $8.4m. Search returned to EBITDA profitability in June, with legacy AdSense for Domains (AFD) revenue negligible in H1. Net debt was $118m at June 2026, up from December mainly because of planned tax payments and the non-renewal of a registry contract, which released associated working-capital financing. With H2 typically stronger, the results provide good support for our unchanged EBITDA forecasts.

We value Team Internet Group using the peer-based sum-of-the-parts (SOTP) framework set out in our 7 September 2026 note. For Domains, Identity and Software (DIS), applying the peer median multiple to our FY26e EBITDA forecast implies 63–72p/share. We value Comparison at $94–104m, or 28–31p/share, on a relatively modest 5–6x EBITDA multiple, and Search at 2–4p/share on a low multiple of earnings, which could turn out to be at trough levels. After deducting $118m of June 2026 net debt, our FY26e SOTP implies a value of 60–70p/share. Further upside could come from a stronger-than-expected DIS disposal price, continued growth and margin expansion in Comparison, further recovery in Search, post-disposal cost rationalisation and potential proceeds from the group’s antitrust damages claims.