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(Sharecast News) - Shares in Team Internet Group sparked on Monday, after the AIM-listed business confirmed full-year trading had met guidance despite tough market conditions.
Updating on the year to 31 December, the business - a specialist in domain management and digital advertising - said revenues had tumbled 40% to $481.9m while adjusted earnings before interest, tax, depreciation and amortisation had slumped 54% to $42.7m.
Team Internet has previously called 2025 an "exceptionally challenging year" after it was hit by tough market conditions alongside broader industry-wide changes. However, the figures were ahead of consensus. Analysts had expected revenues to come in at $465m and adjusted EBITDA at $42m.
Team Internet also flagged strong cash generation during the year alongside "improving" gross margins "despite a challenging transition year for the search segment".
As at 1130 GMT, the stock was up 5% at 41.35p.
Michael Riedl, chief executive, said the fourth quarter had been particularly strong. He continued: "Our core platforms remain robust. Domains, identity and software and comparison have delivered a combined EBITDA compound annual growth rate of 26% since 2023, and now generate approximately 80% of group EBITDA, representing the high quality of earnings within the group.
"In search, we are advancing a product evolution designed to position the business for greater resilience and long-term sustainability."
Looking to the current year, Riedl said the firm viewed 2026 "with confidence", noting: "Continued operational recovery, combined with disciplined capital allocation and potential strategic portfolio actions, create opportunities to unlock and grow shareholder value in lie with the board's ongoing strategic focus."
Team Internet first announced in November a strategic review of the business, arguing that its share price did not reflect the intrinsic value of its individual businesses, despite each of them being a leader in structurally-growing digital markets.
It had also received a number of approaches, with particular focus on its domains, identity and software segment.
Team Internet confirmed on Monday that discussions in relation to a disposal of the segment "continue to progress well", with the board confident that any transaction would "deliver a value-maximising outcome in excess of the group's current market capitalisation".
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