Team Internet Group — Ten-year deal to run the .co domain

Team Internet Group (AIM: TIG)

Last close As at 12/06/2025

GBP0.64

0.50 (0.79%)

Market capitalisation

GBP173m

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Research: TMT

Team Internet Group — Ten-year deal to run the .co domain

Team Internet’s 10-year deal to run the .co top-level domain (TLD) enhances the growth prospects for Domains, Identity and Software (DIS), the group’s highest-quality division in terms of revenue diversity and visibility. Growth prospects may strengthen with ICANN’s planned new Generic Top-Level Domains (gTLD) Program, scheduled for 2026. This is welcome news at a time when visibility for Search is low. Our estimates are unchanged, but we see upside potential to our 55p/share sum-of-the-parts (SOTP) valuation for DIS as prospects strengthen, and believe that the current valuation factors in modest prospects for DIS and Comparison and no value for Search.

Written by

Dan Ridsdale

Head of Technology

Software and comp services

Contract win

12 June 2025

Price 63.00p
Market cap £155m

GBP/ US$1.36

Net cash/(debt) at 31 December 2024

$(96.4)m

Shares in issue

246.2m
Free float 100.0%
Code TIG
Primary exchange AIM
Secondary exchange N/A
Price Performance

Business description

Team Internet Group is a global internet company that generates revenue through domain name distribution, online product comparison and AI-driven customer digital marketing solutions. The company’s mission is to ‘create meaningful connections’ by enhancing user experiences and by fostering deeper engagement through innovative technology.

Analyst

Dan Ridsdale
+44 (0)20 3077 5700

Team Internet Group is a research client of Edison Investment Research Limited

Note: PBT and diluted EPS are normalised, excluding amortisation of acquired intangibles, share-based payments and exceptional items.


Year end Revenue ($m) EBITDA ($m) PBT ($m) EPS (¢) DPS (¢) EV/EBITDA (x) P/E (x) Yield (%)
12/23 836.9 96.4 77.5 22.48 2.00 3.2 3.8 2.3
12/24 802.8 91.9 71.4 21.22 1.00 3.3 4.0 1.2
12/25e 732.7 60.0 45.0 13.60 0.00 5.1 6.3 N/A
12/26e 765.8 67.1 57.4 17.33 0.00 4.6 4.9 N/A

Team Internet has announced that Colombia’s Ministry of Information and Communications Technology has awarded it, in partnership with Colombian domain registrar CCI REG, a 10-year contract to manage and operate its top-level domain, .co. Originally designated as Colombia’s country-code domain, .co has evolved into a globally recognised alternative to .com, favoured by startups, entrepreneurs and digital-first businesses for its brevity, credibility and availability. Team Internet already operates Slovakia’s .sk domain and several regional TLDs. This win underscores its ability to compete for, secure and manage nationally significant domain assets, and should enhance its positioning in future tenders.

Team Internet and CCI REG have established a new company, Equipo PuntoCo, which will manage the relationship with the Colombian registrar. Under the agreement, Equipo PuntoCo and TIG will retain 8% of gross revenues with the remainder flowing to the Colombian government.

No additional financial metrics have been disclosed, but the contract is expected to generate recurring, high-margin revenues. Revenue contribution is unlikely to begin before Q425, so the impact on current-year financials will be minimal. However, with FY26 likely to see the full benefit, our current forecast of 3% growth for DIS in FY26 may prove conservative.

It is worth noting that DIS could also benefit in FY26 and beyond from the ICANN (the organisation that oversees global domain names and the internet address system) initiative to enable the expansion of the internet’s domain name system through introducing new top-level domains.

These developments for DIS are welcome as visibility in the Search business remains low, due to the ongoing transition from AdSense for Domains to Related Search on Content. The same is true to a lesser extent in Comparison, where growth is increasingly reliant on international expansion. Our SOTP valuation attributes $185m (£133m, or 55p/share) to the DIS division, based on a conservative 8x FY26 EBITDA multiple. Applying a 6x multiple to Comparison values it at $95m (36p/share). After accounting for FY24 net debt of $96m (28p/share), this implies that the market is currently assigning little to no value to the Search business.


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