Team Internet faces lower CPMs and buyout stumble
Falling ad revenue and poor performance from an buyout limit growth.
Team Internet Group (AIM: TIG) released earnings today for the first three quarters of 2024.
Overall, the firm posted $615.1 million in revenue for the period, up just 1% from the same period in 2023.
Revenue from the Online Marketing segment, which had been propelling the firm forward, fell slightly year over year. The firm is being hurt by a steep fall in revenue per view from online ads.
Over the trailing twelve months, RPMs (revenue per thousand views) was $79. Just last quarter, the trailing twelve-month RPM was $88, so there was a steep fall in the past quarter. This comes as it is also paying more to attract traffic to its ad pages, basically squeezing the firm’s traffic arbitrage business from both sides.
A bright spot in Online Marketing is the firm’s product comparison sites, where the RPM increased 19%.
Another issue for the firm is poor performance from its $41.8 million buyout of Shinez earlier this year. At the time of the buyout, I noted that Shinez’s network of websites contains rather “thin” content that could be impacted by changes in Google search results.
The firm stated:
[Shinez] has underperformed relative to expectations, primarily due to unanticipated changes in its specific target markets. In response, the Group has swiftly taken corrective actions, integrating additional advertising inventory and refining revenue optimisation strategies to enhance Shinez’s performance.
Revenue in the Online Presence segment, which includes domain registration services, ticked up 5% to $144.1. Domain transactions were down 6%, but revenue per domain climbed by 13%.
