Only 1% year-over-year growth in Q1, but profitability up sharply.
Team Internet Group (AIM: TIG, OTCQX: TIGXF, formerly called CentralNic) revealed its Q1 earnings today.
The high-growth revenue of past years has now dwindled, but profitability is up.
Team Internet said gross revenue of $195.9 million increased just 1% in Q1 compared to a year ago.
However, operating profit jumped 44% to $11.1 million, and the company reported a 62% increase in profit after tax at $4.7 million.
In the Online Marketing segment, visitor sessions increased 19% to 6.0 billion for the trailing twelve months. Revenue per thousand (RPM) for this period decreased to $91. For all of 2023, the RPM was $95.
In its annual report released earlier this year, Team Internet said it expected the RPM to stabilize. While it has fallen further, it’s important to note that the company has some control over RPM because it makes its money through advertising arbitrage. It can add segments and topics that make a lower RPM, and as long as these are higher than its cost of traffic, it still turns a profit. So, RPM might not be the most valuable number by which to judge its traffic business.
The company stopped focusing as much on growth by acquisition over the past couple of years and instead has shifted to profitability and returning capital to shareholders through stock buybacks and dividends. It will pay a 2.0 pence dividend on May 28.
Tyler Fields is your internet guru, delving into the latest trends, developments, and issues shaping the online world. With a focus on internet culture, cybersecurity, and emerging technologies, Tyler keeps readers informed about the dynamic landscape of the internet and its impact on our digital lives.
