Team Internet launches strategic review after 'number' of approaches

(Sharecast News) - Team Internet Group announced the launch of a strategic review on Tuesday, aimed at realising the value of its portfolio, following a series of inbound approaches and what it described as a disconnect between its market valuation and the intrinsic worth of its businesses. The AIM-traded digital platform operator said it was exploring divestments or strategic partnerships across substantially all parts of the business in separate transactions, designed to highlight the standalone value of its market-leading platforms.

It said the review would not include a sale of the company itself under the UK Takeover Code.

Discussions were said to be most advanced within the domains, identity and software (DIS) segment, where the group had appointed a tier one financial adviser to explore options including a sale.

Team Internet said the unit had delivered strong year-on-year growth and improving margins, and that it "could command a valuation materially exceeding the Company's current market capitalisation".

The group also provided an update on its search segment, which it said had faced headwinds after Google accelerated the phase-out of its AdSense for Domains product and introduced new advertising policies.

It said the changes had delayed growth in Related Search on Content (RSOC), though the company said RSOC volumes had grown more than 200% sequentially since the first half.

Team Internet said it was now refocusing the division on direct-to-advertiser and commerce media operations while expanding partnerships with alternative feed providers.

The segment would be classified as an asset held for sale as part of the review.

In its comparison business, performance had improved following earlier challenges, with international operations now contributing to profitability and accounting for a growing share of revenue.

For 2025, Team Internet said it expected adjusted EBITDA of $40m to $45m, down from $92m in 2024, reflecting the transition within search.

The DIS unit was forecast to contribute $21m to $22m, comparison $11m to $13m, and Search $8m to $10m.

From 2026 onwards, the company said it expected to return to double-digit earnings growth, supported by continued strength in DIS, recovery in comparison, and scaling of its restructured search operations.

"One year after initiating a comprehensive review of Team Internet's asset ownership, we are now taking the logical next step: a strategic review aimed at unlocking the full value of our portfolio," said chief executive Michael Riedl.

"Each of our businesses operates in structurally attractive markets, and we believe the sum of their parts is worth considerably more than the group's current market valuation.

"While we continue to firmly believe in the long-term prospects of our partnership with Google and the RSOC product, the near-term changes to the AFD framework and new policies such as RAF and RAC have brought forward the need to pivot our strategy.

"We are now focusing the business more on our captive direct-to-advertiser and commerce media operations and on partnerships with alternative feed providers."

Riedl said the group's combination of "resilient performance in DIS, improving trends in Comparison, and the structural evolution of Search" gave him confidence that all its businesses had strong outlooks for 2026 "either within or outside the group".

At 1525 GMT, shares in Team Internet Group were up 13.95% at 49p.

Reporting by Josh White for Sharecast.com.