Digital marketing specialist Team Internet has said it is on track to meet expectations for the full year on the back of steady earnings growth and a boost from a major acquisition last month.
The AIM-listed firm’s pretax profit came in at $7.1m (£5.7m) for the first three months of 2024, up 65 per cent from the same period last year. Meanwhile, its operating profit rose 44 per cent to $11.1m (£8.9m).
Team Internet, which said it “prioritises earnings growth over top-line growth”, saw organic revenue growth of around eight per cent over the 12 months ending on 31 March 2024, while gross revenue ticked up one per cent to $195.9m (£156.4m) year-on-year. Its net revenue increased four per cent to $47.6m (£38m).
The firm’s gross margin rose to 24.3 per cent from 23.5 per cent a year ago. Its adjusted earnings before tax (EBITDA) increased four per cent to $22.2m (£17.7m).
Team Internet’s adjusted operating cash conversion fell to 80 per cent from 94 per cent year-on-year, which it pinned on cash receipts from a “significant business partner” being collected in April rather than March due to Easter public holidays coinciding with the end of the quarter. It expected cash conversion to normalise closer to 100 per cent over the rest of 2024.
Michael Riedl, chief executive of Team Internet, said on Monday: “I am pleased to report that the emphasis on holistically managing for earnings and cash flow continues to yield substantial benefits. This holds true even as we tailor the growth of our Online Marketing sector to align with our enhanced focus on sustainability and customer experience.”
Last month, Team Internet acquired online marketing business Shinez for $43.2m (£34.5m).
Riedl said that following the merger, Team Internet had “a robust platform addressing the ‘Awareness’ stage of the advertising funnel, complementing our existing offerings, TONIC and VGL, which focus on ‘Consideration’ and ‘Conversion’, respectively”.
“We now undoubtedly hold the most comprehensive product offering among our peers,” he added.