Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Very interesting/intriguing news today that TIG shares have begun trading in the USA on the OTCQX, which is the premier tier of the OTC market:
"Trading on OTCQX will significantly enhance Team Internet's visibility and accessibility in the world's largest capital market"
Apparently TIG "has received interest from numerous US investors in the past and, in recent months, has hosted several meetings with US investors".
Given the CEO's comments below, perhaps this will presage an eventual move to a full US listing either away from AIM or a more premium market listing on the NASDAQ?
I wouldn't blame TIG for looking in that direction given the substantial discount compared to its US peers:
Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Commencement-of-Trading-on-OTCQX/93628568
"Michael Riedl, CEO, of Team Internet, commented: "As we mark the beginning of our trading on OTCQX, we are not just opening a new chapter for Team Internet. We reinforce our commitment to enhancing shareholder value and expanding our footprint in the United States, a market that represents nearly 50% of our revenue. This move reflects our robust performance and the investor confidence we have been fortunate to build, especially within the US, over the past year. We recognise the importance of making our shares more accessible and appealing to US investors, and qualifying to trade on OTCQX is a strategic step in that direction. We are eager to welcome new investors and invite them to join us in this exciting journey."
Just noticed that in the last 2 days RNS filings that they've started to cancel shares (which were held in treasury). Not sure why they would cancel some each day rather than in one block. Seems a bit strange.
Continuing the move up - buying coming in at the full 145p offer now.
CEO and CFO are continuing to focus on the business and accounting. The sketchy part of Adjustments (non core opex) continues to reduce. AMORTISATION should remain fairly stable you despite the shinez acquisition which imo really moves the needle specially on reducing the reliance on google.
Reported profitability is firmly anchored.
Last year was a tough macro backdrop but still TIG delivered double digit organic growth.
All lights turned to green. I am very bullish over the next 12 to 24months.
Moving up again this afternoon, up 3.2p, and at the highest it's been since last March.
Up 2p to 141.5p, and on lots of volume too with 212k shares traded already. Looking good. Yet still ridiculously cheap imho.
It's about time. The great mgmt and value they are building have been evident for some time, now the numbers are reflecting the progress that has been made.
Now up 3.5p on over 2.4m shares traded. Looks like the dam is breaking....
Up 2p on almost 1.3m shares traded already today. Perhaps the excellent recent news flow is finally seeing the message and value here hit home.
New Edison research is out post-results (not yet incorporating the acquisition).
TIG beat forecasts on almost all metrics, with 22.4c EPS beating the 21.4c EPS forecast.
Curent year basic EPS has now been upgraded to 26.76c EPS (from 25c EPS). i.e 21.07p EPS and a P/E of 6.4.
Next year's forecast basic EPS is now 28.12c EPS:
Https://www.edisongroup.com/research/growth-and-returns-acquisition-bolsters-outlook/33362/
"Valuation:
Shinez brings US$1bn+ revenue potential Across FY24e and FY25e, the group remains at a steep discount versus peers, despite delivering faster FY23 revenue growth and margin expansion. Pro-forma with Shinez, US$1bn+ mid-term revenue seems achievable. Combined with continued operationally geared organic growth, this could drive stock upside"
...and this was after yesterday's results, so even before today's highly earnings-enhancing acquisition:
hTTps://citywire.com/investment-trust-insider/news/expert-view-barclays-marshalls-crh-currys-team-internet-group/a2438521?page=5
"Berenberg sees value in Team Internet Group
Internet services company Team Internet Group (TIG) is delivering ‘resilient growth’ and is expected to hit current market expectations, says Berenberg.
Analyst Ciaran Donnelly retained his ‘buy’ recommendation and increased the target price from 180p to 185p on the stock, which softened 1% to 135p after full-year 2023 results on Monday.
The results were ‘marginally ahead of the numbers in its trading update of 29 January’. Revenues were up 13% at $836m – the online marketing division grew gross revenues by 14.3% to $657.1m, while the online presence division grew gross revenues by 17.1% to $179.8m.
‘These results are 7% ahead of our forecasts for gross sales and 6% ahead for adjusted earnings,’ said Donnelly.
‘In terms of the full-year 2024 outlook, management is confident it will meet current market expectations. We update our full-year 2023 forecasts to reflect the results and make minimal changes to full-year 2024 and full-year 2025 forecasts.’
Donnelly increased the target price as he said the valuation was an ‘undemanding’ 8.2 times full-year 2024 price to earnings and the shares offer a free cashflow yield of 14%."
Zeus Capital are very bullish about today's new acquisition - extracts:
"Online Marketing bolt-on
Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong track record, cash generation and growth opportunities are not reflected in its 4.8x 2024 EV/EBITDA multiple."
"¨ Transaction details: The $41.8m initial consideration, funded with existing cash reserves and debt from its RCF, is equivalent to 4.0x adjusted FY23 EBITDA of $10.4m and generates a FCF yield of over 20% based on FY23 figures. The deal is expected to create mid-single digit percentage EPS accretion on combined pro-forma numbers for FY23, before the impact of synergies. An additional $12.3m of contingent consideration is tied to ambitious financial targets over two years, which we would expect to enhance the accretion if met. With the Group currently trading on an FY24 EV/EBITDA multiple of 4.8x and generating a FCFF yield of 16.9%, we think this acquisition presents better returns to shareholders than further share buybacks at this time.
¨ Forecasts: Shinez reported $100m in gross revenue $17.2m in net revenue and $10.4m in Adjusted EBITDA for 2023. On a pro forma basis, Team Internet estimates the enlarged Group would have generated gross revenue, net revenue and Adjusted EBITDA of approximately $948m, $208m and $107m, respectively. The impact of the accretive acquisition will be incorporated into Zeus estimates upon the transaction’s completion, expected in late April/early May 2024. For FY24, we expect to add approximately half of Shinez’s $10.4m FY23 adjusted EBITDA to the Group forecasts for FY24. The deal is expected to create high-single digit percentage EPS accretion on combined pro-forma numbers for FY23, before accounting for potential synergies.
¨ Valuation: We continue to believe Team Internet shares are very attractively valued. The shares trade at only 4.8x EV/ EBITDA 2024 and 6.7x PE, with a 16.9% FCFF yield. In comparison, Online Presence peers trade at 9.2x EV/EBITDA 2024 and Online Marketing peers trade at 7.2x, 95% and 53% valuation premiums to Team Internet."
Https://www.proactiveinvestors.co.uk/companies/news/1043414/team-internet-celebrates-milestone-year-with-strong-2023-financial-performance-doubles-dividend-1043414.html
https://www.proactiveinvestors.co.uk/companies/news/1043454/team-internet-group-swoops-for-online-advertising-specialist-in-41m-deal-1043454.html
Blimey, this could take us close to being a Billion dollar business in 2024! Exciting times.
TIG is making major strides. We need the SP to catch up quickly or the BoD will be fighting off low-ball take over offers.
Wow.....major news out of strategic acquisition
Big acquisition news this morning - $41.8m paid for Shinez on a bargain multiple of only 4 times EBITDA.
Plus:
- "this acquisition is expected to significantly enhance earnings per share" by around 8%-9%, i.e high single-digits, this year
- substantially increases diversification away from Google, which is excellent news
- there should as always be loads of synergies in diverting traffic via TONIC etc
Hopefully this should excite the markets.
Team Internet Group plc posted solid audited FY23 results this morning. Revenue increased by 15% to $836.9m adjusted EBITDA increased by 12% to $96.4m, operating profit increased by 26% to $42.3m while PBT increased by 98% to $29.3m. Adjusted EPS for the year rose 32% to 23.22c while a final dividend of 2.0p was proposed, up 100% as the group continues to pursue the progressive dividend policy launched in 2022. Net debt increased by 31% to $74.1m primarily due to $39.7m of cash share repurchases. Valuation remains compelling with forward PE ratio at just 7.5x in the top decile for Software & IT Services companies. The share price lacks some positive momentum and has been drifting sideways in range for a couple of years. There is no rush to buy at the moment, but the share is certainly worth monitoring and will be well worth owning once it does start moving....
....from WealthOracle
wealthoracle.co.uk/detailed-result-full/TIG/833
I wonder if the struggle TIG has to grow its share price is because it’s a bit of a confused story? By combining Online Presence and Marketing it can’t be compared neatly to its competitors. And is it a growth or an income stock? Clearly neither at the moment. A further increase in dividend to say 4p might make it more attractive to income funds, but it won’t be at the moment. Even as a “hybrid”, at some point a satisfactory level of dividend EPS growth will inexorably lead to a share price response but how long? Any merit in separately listing the Marketing and Presence businesses? Or a NASDAQ listing?
A completely bizarre start today, presumably caused by short-term traders. And an opportunity for those wishing to buy!
Zeus have raised their forecasts for this year yet again and acknowledged the beating of their already raised expectations for last year:
They now forecast 25.4c EPS this year, rising to 27.3c EPS next year.
The dividend is also now forecast to rise to 2.2p this year. And net debt is to fall dramatically to £23.2m.
Brief extracts:
"Assisted by share buybacks in the period, adjusted basic EPS increased by 17.2% to 23.2 US cents, 3.6% ahead of our recently upgraded estimate. With these results, Team Internet extends its track record of upgrading and outperforming expectations."
"Record results
Team Internet’s FY23 results confirmed another strong year of trading from its
Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash generation and growth opportunities, both organic and inorganic, are not reflected in its 4.8x 2024 EV/EBITDA multiple."
"Outlook: Management remains confident in meeting market expectations for FY24. With Zeus estimates at the bottom of the consensus range, we increase FY24 EBITDA by $1.0m (1%) to $98.3m, which may still prove to be conservative. EPS growth, now +9.5% yoy, is enhanced by the full year impact of share buybacks. We increase FY24 DPS from 1.8p to 2.2p. Forecast changes are summarised on page 3. FY26 forecasts are also introduced today, showing 6% net revenue growth and further margin expansion.
Valuation: We continue to believe Team Internet shares are very attractively valued. Despite the strong operating performance and financial results, the share price is broadly flat on 12 month basis. The shares trade at only 4.8x EV/ EBITDA 2024 and 6.8x PE, with a 16.7% FCFF yield. In comparison, Online Presence peers trade at 9.2x EV/EBITDA 2024 and Online Marketing peers trade at 7.3x, 91% and 52% valuation premiums to Team Internet."
"For the year ended 31 December 2023, there was one customer that represented more than 10% of the Group's revenue, amounting to USD 566.9 million (2022: USD 492.8 million) across two segments, Online Marketing: USD 558.9 million (2022: 483.2 million) and Online Presence: USD 8.0 million (2022: USD 9.6 million). The customer is an aggregator who does not procure the services for its own use but provides access to an estimated three to four million end customers who order and consume the services."
I always assumed that this was Google but doesn't quite tie in with the 3-4m customers line. Any ideas?
Good results but as usual share price is down , why?
Wow
Everything Company has to find true value in the end or it'll be taken over.
There's a good return to be made, it's just how and when.