Sparks

Team Internet’s H1 results were in line with the July trading update and encouraging overall.

While group net revenue declined 16% to $61.0m and EBITDA 21% to $19.5m, the declines were entirely attributable to the transition in Search, with DIS and Comparison both growing strongly.

DIS delivered a solid performance, with net revenue up 8% to $40.8m and EBITDA up 28% to $13.7m, despite lower gross revenue, reflecting the focus on higher-value accounts, growth in value-added services and ongoing operational rationalisation. Importantly, the DIS strategic review is at an advanced stage, with discussions continuing with multiple parties; management continues to expect a valuation materially above $160m, with completion around year-end.

Comparison is emerging as the key pillar of the post-DIS business, with net revenue up 38% to $12.4m and EBITDA up 56% to $8.4m. The business remains predominantly DACH-focused at this stage, but new acquisition channels, including Google Shopping ads, and the early profitability of France reinforce its potential to build international revenues without significant margin compression.

Search has now completed its transition away from AFD and returned to profitability in June, although RSoC remains relatively immature and revenue progression is likely to remain uneven as workflows are refined.

Net debt was $117.5m at June, up from $87.6m at December, but management expects a significant reduction in H2. With H2 typically stronger, estimates look generally well supported.