(Sharecast News) - Team Internet Group said in a trading update on Monday that it anticipated reporting record-breaking gross revenue of $835m for 2023, making for a 15% increase compared to the prior year.
The AIM-traded firm said net revenue, or gross profit, was expected to reach around $190m, reflecting 7% growth, while adjusted EBITDA was projected to have improved 12% to $96m.
Those figures surpassed the recently-upgraded market consensus for 2023, indicating robust financial performance.
When adjusted for acquisitions and foreign exchange fluctuations, Team Internet's organic growth for 2023 stood at about 12%.
The company said online marketing was expected to report gross revenue of $656m for 2023, a 14% increase from the prior year's $575m, while online presence was projected to generate gross revenue of $179m, making for 16% growth from the $154m it recorded in 2022.
Despite its financial results, Team Internet's net debt as of 31 December had expanded to $74m, widening from $57m at the end of 2022.
The board put the increase down to share repurchases totaling $40m, dividend payments of $4m, and the settlement of deferred contingent consideration, which added up to $22m during 2023.
Nevertheless, the company said it achieved an adjusted operating cash conversion rate close to 100%.
"As we reflect on 2023, I am proud to announce that Team Internet has not only met, but exceeded the ambitious goals we set at the beginning of the year," said chief executive officer Michael Riedl.
"The company's investment in innovation led to the launch of more new products than ever before.
"The company also signed up a record number of new demand and supply side partners."
Riedl said the firm's financial performance in 2023 stood "as a testament" to its strategic vision and operational efficiency.
"We improved our adjusted EBITDA-to-gross profit ratio from 48% to 51%, reflecting our strong financial discipline and focus on profitability.
"The concurrent rise of social media and user-generated content as dominant forms of online engagement, coupled with the increasing emphasis on data privacy, uniquely positions our Company.
"This landscape not only aligns with but actively propels our AI-based contextual advertising solutions.
"As such, we anticipate that these concurrent trends will significantly bolster our performance and help us outperform in any cycle."
At 1337 GMT, shares in Team Internet Group were up 1.08% at 131.4p.
Reporting by Josh White for Sharecast.com.
Team Internet (TIG)