Strategic review and trading update

Team Internet’s trading update flagged that FY25 EBITDA is now expected to be $40–45m (Edison $60m previously), mainly due to the Search business, where legacy AFD revenues have dropped rapidly while uptake of RSoC is uneven while the product evolves. Having received a number of inbound approaches, a formal strategic review has been launched, and discussions are underway regarding divestment or strategic partnerships for all parts of the business in separate transactions. Our SOTP valuation based on listed peer multiples is now 63–76p per share, but we believe the break-up value of the business could be materially higher.