Team Internet Group PLC (AIM:TIG, OTCQX:TIGXF) showcased its financial achievements and strategic directions during the Proactive One2One Investor Forum. The CFO, William "Billy" Green, alongside the Head of Investor Relations, Martin Surzyn, delineated the company's operations across two main segments: the longstanding online presence business and the burgeoning online marketing sector.
The latter has significantly contributed to Team Internet's growth, with a 14% increase in gross revenue to £657 million in FY23, and nearly 6 billion facilitated online consumer journeys. The online presence segment, operating under the brand CentralNic, is recognised for its domain provision services.
A notable emphasis was placed on the company's robust growth, underpinned by a 15% revenue increase in FY23, primarily attributed to organic growth within both operational segments. The presentation highlighted the strategic significance of industry megatrends, notably the shift towards social media and the consequent advertiser reliance on Team Internet's ad tech platform, Tonic, to bridge consumer engagement from social platforms to Google's advertising ecosystem.
The financial discourse underscored the company's high cash conversion rate, nearly 100%, and a strong balance sheet that supports dividend payments, share buybacks, and M&A activities.
The recent completion of a significant acquisition was highlighted, further diversifying Team Internet's online marketing capabilities and introducing a new PPM revenue model to its portfolio.
The leadership underscored a consistent track record of revenue growth, with a five-year CAGR of 25%, and a progressive dividend policy, indicating a doubling of dividend payouts to two pence per share for FY23.
The strategic share buyback programme was detailed, reflecting a commitment to enhancing shareholder value. Additionally, the presentation touched upon the company's debt management strategy, aiming to maintain a net debt to adjusted EBITDA ratio below 1:1, aligning with its prudent financial stewardship.
