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Team Internet Group PLC said a ‘bold but necessary’ strategic shift led to a sharp drop in half-year revenue, but it remains confident in restoring ‘historical profitability over time’. The London-based internet services company reported a pretax loss of $14.1 million in the six months to June 30, swung from a profit of $9.8 million a year prior. In the half-year, Team Internet recorded foreign exchange losses of $6.0 million compared to a gain of $0.8 million a year ago and a $0.8 million impairment charge compared to nil. Gross revenue slumped 36% to $263.9 million from $409.7 million a year prior, which Team Internet reflected the planned transition away from AdSense for Domains. Team Internet said, as anticipated, the accelerated shift from AFD to related search on content is materially reducing revenue and earnings before interest, tax, depreciation and amortisation in the Search segment. However, it stressed this was planned and reflected in previous guidance. ‘Management is confident in being able to restore historical profitability over time,’ the firm added. Shares in the firm were down 5.0% at 58.59 pence each in London on Monday morning. Revenue in Search slumped 52% to $132.1 million with adjusted Ebitda down 73% to $8.5 million. Group adjusted Ebitda nearly halved to $24.6 million in the half-year from $46.6 million a year ago. ‘The first half of 2025 was a period of strategic transformation. Each segment has been repositioned to be more resilient, with modernised products, expanded addressable markets and a streamlined cost base. Most of the financial benefits of these initiatives will crystallise during the course of H2 2025,’ Team Internet said. In Domains, Identity & Software, Team Internet reported an ‘unprecedented’ number of net contract wins in the first half which ‘provide visibility’ into continued net revenue growth in 2026 and beyond. Comparison softened early in the first half and returned to growth towards the end of the period based, Team Internet added. Chief Executive Michael Riedl said Team Internet took ‘bold but necessary steps’ in the first half of 2025 to ‘modernise’ products, expand its addressable market, and improve its cost base. ‘Our performance improvement programme is targeting a $24 million reduction in the 2026 cost base versus 2024, on a like-for-like basis,’ he added. In 2024, operating costs in the business totalled $178.7 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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