Team Internet Group plc (TIG) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Team Internet Group plc Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish all responses where it's appropriate to do so on the Investor Meet Company platform. Before we begin, we would just like to submit the following poll. And if you give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the executive management team from Team Internet Group plc., Michael. Good afternoon, sir.

Thank you for the introduction, and welcome, everybody, on this call today for the Team Internet Group interim results for the 6 months ended on the 30th of June. I'm here today with our CFO, Billy Green. And in the next few minutes, we are going to go with you through the following agenda. First, I will run you through our business strategy and then Billy will take over and go through the financials and also ultimately present the outlook of the company to you. So for those who are new to the -- our business, we operate in 3 segments: the first being Domains, Identity & Software; the second Comparison; and the third being Search. In Domains, we are the Internet distribution backbone for domain names, cybersecurity products and brand protection products. And the world-leading online presence platform, cybersecurity providers and also global brands rely on us to create the brand online, grow it and scale it securely. In this business, in the first half of the year, we've done around $104 million of revenue, from which we generated $38 million of gross profit. The most remarkable figure on this division, however, is certainly the EBITDA that we have grown by around 30% from $8.3 million to $10.7 million in the first half of this year, which is basically the confluence of continued growth and us doing a lot of work in terms of streamlining our cost structure. We'll come -- we'll speak more about that on the next slide. In Comparison, our role is to basically cut through the noise and bias on the Internet. If you search for something like what's the best vacuum cleaner, everybody will shout I'm the best. And here, we provide independent data-driven guides that earn the trust of consumers and convert them into actual customers. The monetization here works through referring high conviction customers to leading e-commerce partners, including Amazon as our premium partner. And this is in terms of the online advertising world, pretty much as good as it gets. The world has been moving to models where advertisers only pay when they see actual outcomes. And therefore, our Comparison business pretty much plays in the end game of AdTech. And with this concept in the first half of the year, it has generated $28 million of gross revenue, from which it created $9 million of gross profit. And out of that gross profit, it's converted 60% into final earnings. Then in Search, what are we doing here? Search engines struggle engaging with Gen Zs and even younger generations. However, the social media platforms, they are strong at capturing the attention, but they struggle in converting the audiences into actual customers. And we bridge that gap with lean and high-yielding experiences where we engage with users on social media and show them the rich offering of the open web, thereby turning scrolls into revenues. And on the 4th of March, we have pointed out by RNS that Google, who is our main partner here is materially overhauling its workflow with which this business is being conducted, which for this year leads to challenges around the revenue and profit generation. However, despite these challenges, we've still generated $132 million of revenue, so that's $22 million per month. Out of that, we generated almost 20% into gross profit, $26 million and still generated $8.5 million of EBITDA. And on the last slide in this business and strategy section, we're going to present to you our plans, how to turn this around to -- in order to basically seamlessly align with the profits that we've shown in the past. Deep diving on Domains. Here, our focus is profitable and value-added growth. So we are looking into quality over quantity. We are looking into margin resilience. So we want -- we are only engaging with customers with whom we can work on fair terms and conditions. We are focusing on value capture to work with those customers where our product and service has the highest value added for them, and who then, in return, would pay us good money for our services. And we are also looking into growth adjacencies outside the domain sector. All of these factors basically underpin our strategic role in the domain industry and domain names, even though they now exist since, who would have guessed 42 years, the domains were invented in 1983. Domain names are still the anchor of digital identity. This is where you serve your website from. This is where you send your e-mail from. Your e-mail is then again, you log in into all kinds of digital services. So a business that has been a business model that has been forged 40 years ago, but it is today, more relevant than it ever was, as everyone is trying to move the economy global. And these are not only claims that we are making, actually, we have quantitative evidence of the progress here. So as you see on the left-hand side, the number of domain years that we've processed has come down a bit by 4%, again, given that we are basically foregoing opportunities to make ultra-low-margin revenues just to drive up, but without any profits. And you see success in that, actually we could increase the average revenue per domain year that we processed by 8%. So net of the 2 factors, this very clearly pays off. And we've also demonstrated that we've increased the share of non-domain revenues from 16% to 17%. So that's a relative 6% increase. Again, quantitative evidence that we are making progress on the strategies that we have presented on the right side of the screen. If we then move forward to Comparison. Here, our focus is resilience and expansion of the business. So our first priority has been resilient traffic economics. Those who follow the company will, of course, have noticed that over the last almost 3 years, ChatGPT and later other AI products have evolved as challengers to search engines. However, with the strategies that we've applied, we managed to keep the volume of traffic or the volume of visitors that we could acquire from search engines constant at almost 180 million visitors over 12 months. We've also shown that our business model is resilient in converting these consumers into actual customers. So in both periods, we generated, on average, $235 and $236 per every 1,000 visitors that came to our website. What we have increased though is our revenue from countries outside the German-speaking community, so everything other than Germany, Austria and Switzerland, which has gone from around 0% in the first half of 2024 to now already 5% on average during the first half of this year. And here, we will make more progress. We have -- the U.K. website is already live. The U.S. website will be live in a few weeks, and then we will also start promoting both of these websites big time on the Internet in order to generate sales during the Black Week also from the U.K. and the United States. The ultimate -- why do we put so much focus on the internationalization, because it is the biggest lever that we have. When we think about the market that we address today, which is very much the German-speaking community within Germany, within Europe, only by going into Italy, France and Spain, we have almost tripled the total addressable market in terms of population that can now use our services. And with the steps that we've already committed to complete in the second half of the year, the United Kingdom and the United States, we will have multiplied the total addressable market by a factor of 7 in terms of population and a factor of 9 in terms of gross domestic product. It will, of course, take years until we -- our market shares in these markets align with the market share that we've been able to secure in -- within Germany and the adjacent German-speaking countries. However, when you look at the potential of that expansion, it is, of course, very significant. And this is -- I would not be surprised if this business will be our biggest business, if you would meet again in 10 years from today. Moving on to Search. Search is the business around which we -- which triggered our forecast, the reset of our forecast on the 4th of March. What you -- again, for those who might be newer to this story, we have historically been using a Google workflow called AdSense for Domains, where basically we were allowed to show individual ads, on otherwise empty websites, which is something that Google wants to deprioritize in the future, and they want us to show not only a single ad, but the full Google search results embedded into a contextually aligned content environment, something that strategically, we are very much in line with, which, however, gives us a few temporary challenges that we are currently working on. But the most important KPI, which we show on the left is the number of visitors. So in the 12 months to the 30th of June 2024, we had a bit more than 6 billion visitors from all across the world. And we've even been able to grow that further to more than 7 billion users in the last 12 months ending on the 30th of June this year. And that -- why do I focus so much on that? Because on the Internet, the first thing that you need to accomplish is that users engage with your product. If you don't get there, then everything is lost. However, here, we've actually -- we've been very successful in even further growing business number, and that's basically the basis of the turnaround that is yet to happen. What we've seen though is that the revenue per 1,000 visits has come down quite dramatically from 88% -- $88 per 1,000 sessions to $47 per 1,000 sessions. And those who follow us for a longer while will know that this KPI has been north of $100 in the heydays in 2020 and 2023. And people might not be worried, but if the revenue that you generate comes down, then at some point, you will not be able to make profit anymore because you have to buy the traffic. And here, the great news is, we don't see any of that in the market. Because what we see is that there is an almost perfect price elasticity on the buy side. And this is why -- this is despite the fact that with AdSense for Domains, where, again, connecting the dots, where Google has announced that they are basically forcing the customers out so that they would have to basically proactively opt in again. Of course, that hits the demand on that platform. And yet, we were able to basically push or propagate this -- the lower click price levels virtually fully to the buy side. And this is why we generate the same percentage margin as before, which is a very strong signal that our monetization channel is still one of the most performing on the Internet, and this is why we can still, despite this headwind, buy tons of traffic profitably. And of course, in the long run, we must learn to generate all of our revenue from this new product Related Search on Content. And here, we see a very strong market validation. So the click prices that you see on Related Search on Content are notably higher than the click prices on AdSense for Domains, which is a great basis to start from. What we still need to figure out is to -- our machine learning needs to figure out is to how exactly to design the website so that more users would click on the paid ads, less users would click on the organic ads. I mentioned before that rather than showing one single ad, we're now showing the full Google search results in the page, and that's despite the fact that we are writing great and helpful content. We also must make sure that users still click out. These are things that are all manageable. The important thing is venture capitalists always talk about product-market fit. The product market fit is very strong. Advertisers are really happy to pay us much higher click prices. So from here, it's basically all execution, optimizing the work experiences, just the same way that we've done it from 2019 to 2023 when we scaled AdSense for Domains from $75 million of revenue to $0.5 billion of revenue. And now we will do the exact same thing with RSOC. RSOC today is already bigger than AFD was at the end of 2019 when we entered the sector. So this is why management has all confidence that if you bear with us, for a few more quarters, we will see very strong validation and uplift from profits from this. This basically ends the business and strategy part of the presentation. I'm now handing back to Billy to run you through the financials and the outlook.

Thank you, Michael. Just starting to take a look at the financials of the company. Across this highlights page, you'll see a number of metrics, which are in line with what we expected the business to do in the first half of the year, when we revised the expectations for the year back in March. So in Q1 of this year, we set new expectations, and the results for the first half were in line with those expectations. Of all the different revenue streams, you'll see that gross revenue decreased at a higher rate than net revenue. So the slightly lower decrease in net revenue is a function of stronger gross margin experienced in the first half of this year and continues to be experienced in the second half of this year. Those of you who followed Team Internet and previously CentralNic Group plc for a number of years will remember that the last time our Search business was growing at a rapid rate, we experienced an almost continual or a fairly consistent decrease in gross margin percentage. Gross profit was increasing, but gross profit -- gross margin percentage was decreasing. We're now experiencing somewhat the opposite in a period like the first half of this year when Search revenues are lower and our Domains business is a higher proportion of our business than Search, we get some of that gross margin percentage back. And therefore, you see a slightly lower decrease in net revenue. We'll talk more about adjusted EBITDA and operating loss when I flip to the next slide, which is a more detailed P&L. The adjusted earnings per share of the group still generating a positive contribution from that adjusted earnings per share and indeed benefiting from a lower share count, having continued to buy back shares in the first quarter of this year. The net debt of the company, the decrease from the level of net debt at year-end to the $93.3 million as of the 30th of June 2025, doesn't really give the full picture as to how much net debt has decreased in the last year. Net debt was near $110 million at the 30th of June 2024. So net debt had already decreased from 30th of June 2024 through the end of '24 and continues to decrease in the first half of this year. So moving from near $110 million to $93.3 million just illustrates that in a period in which we have no M&A activity that we're able to generate cash and to gradually pay down our external facility. Adjusted operating cash flow, you'll see there in the first half of this year, generating $26.9 million of adjusted operating cash flow. And I'll flip on to the next slide now so we can talk in more detail about the income statement. So you'll see on this slide that the operating -- we present effectively 2 different profit metrics. Adjusted EBITDA is a non-GAAP metric, but it's more reflective of the underlying profitability and trends and performance of the business, whereas operating profit, that's a GAAP, that's an IFRS measure. So the operating profit -- or the operating loss rather of $7 million for the first half of this year, you'll see that, that is impacted by not only a $6 million foreign exchange loss in the first half of this year. So that's a $6.8 million swing in operating -- in foreign exchange gain to loss as a comparative. So that naturally impacts the operating profitability, but also as well as those nonrecurring foreign exchange losses, we also had $7.2 million of noncore operating expenses in the first half of 2025. Those by their nature are nonrecurring. The reason we peel out and disclose separately those operating expenses as noncore is because they are not related to the underlying trade of the business and they are nonrecurring. So if you look in the detail of the RNS interim report we released this morning, you'll see that $4.7 million of that $7.2 million noncore operating expense relates to restructuring activity. So effectively, costs that we've incurred upfront in order to reduce the future operating cost base of the business. So an investment of $4.7 million in reducing the operating cost base of the business, which will continue to then benefit us by lower operating expenses prospectively. So the -- naturally, the return on that $4.7 million investment, and I use the term investment very broadly because, of course, that's not a [ capital ] of the investment, no GAAP enable you to capitalize those redundancy costs, those restructuring costs. But that $4.7 million investment that we've made in the first half of this year naturally yields significant dividends in the future. The final comment I'll make on the income statement before we proceed to the balance sheet. You'll see that our net finance costs were lower in the first half of 2025 than in 2024. And if you look at the detail in the note of the RNS, you'll see that that's mainly driven by a lower level of external interest on our external debt. That's driven by 2 factors. The decrease in net debt I referred to earlier, naturally having a lower level of net debt gives us a benefit in lower interest expense. And like the slightly lower interest rates compared to last year have been a benefit to us and continue -- we continue to enjoy a lower rate of interest on our debt. Moving forward to the balance sheet. I've referred earlier to net debt and what's been going on there, and you'll see the decrease from year-end to the 30th of June, worth also pointing out that not only has net debt decreased, but gross debt has actually decreased at a higher rate given the reduced working capital needs of the business and given that a lower proportion of the business is made up of our Search segment than our Domain segment. And given the significant working capital needs of our Search segment. The amount of cash we need to have on hand has decreased, and therefore, the decrease in gross debt exceeds both in absolute terms and proportionately the decrease in net debt. So the amount of gross interest-bearing debt at the end of 30th of June 2025 is $150 million fixed term loan and then just under $20 million of revolving credit facility. As a reminder, our complete capacity on our revolving credit facility is $100 million. So to be down to a mere $20 million drawn down on that, so with $80 million capacity remaining, just indicates that we have significant headroom in terms of our external borrowings. Just taking a look at the last financial slide that we'll present for today, there are, of course, more detailed financials in the RNS release this morning. The cash conversion of the business, I've become relatively accustomed to indicating for the first half of each year that the level of cash conversion was relatively modest for the first half of the year, and we then expect that to normalize or grow to in excess of 100% in the second half of the year. We've had a very good performance in terms of cash conversion in [ the first half of ] 2025, converting -- successfully converting operating profit to operating cash at a rate of 109%. We always aim for at least 100% in terms of conversion of operating profit to cash. So to achieve 109% in the first half of the year illustrates 2 factors. One is the continued working capital discipline of working through all vendor and supplier relationships to ensure that we extract the maximum possible cash conversion out of the profitability. But also, as I alluded to earlier, the higher proportion of Domains business, DIS business, versus Search business in the mix does lead to us in the short term a more efficient working capital structure, and as we've been able to reduce our working capital needs as the Search business is producing significantly lower gross revenue, and somewhat lower net revenue than last year, while we're working through that rebase of that business, that does release working capital needs, and therefore, means that we were able to convert EBITDA at higher than 100%. We continue to target converting operating profit to cash at higher than 100% for the second half of this year so that we can be confident we will remain above 100% conversion for the remainder of this year. In terms of the outlook for the year, there is no significant change from the last time we communicated in detail with the market. It's worth restating by division that the very realistic expectation is that profitability in the second half of this year will be higher than profitability in the first half of this year for 2 sets of reasons, really or maybe even 3 sets of reasons. One is the usual seasonal benefit that we have in our Comparison and Search segments, less so in our Domains, Identity & Software segment. But in our Comparison and Search segment, there is a definite seasonal trend that leads to H2 of each year being stronger than H1, Q4 of each year being the bumper quarter with, as Michael alluded to earlier, Black Week and the runup to Christmas, so both in terms of the product comparison, the e-commerce business and in terms of the Search, the online advertising business, we look forward to seeing H2 continue as a growth segment. It's been strong to date, and we look forward to that continuing. You've then got the amount of costs that we've removed from the business. I alluded earlier to the upfront costs that we've incurred to remove costs out of the business, where we then start to see the return in the way of a lower cost base in the second half of this year and into next year, plus as well the business wins, the net impact of the business wins we've had in the DIS segment leads to higher revenue in DIS compared to the first half of this year, plus as well the Comparison segment will continue to grow as our international businesses start to contribute more materially to the makeup of the group. Comparison, frankly, internationalization was a slight drag on profitability in the first half of this year, in line with business plans. So in line with our budget for this year, we knew that our international businesses in comparison would be loss-making in the first half of this year, but they start to turn towards breakeven now, and then they should be profitable by the end of this year. So they're actually contributing more into the second half of this year and flowing through into next year. So there's better momentum and more confidence in each part of the business than there was the last time we updated the market when we reviewed and presented our annual report in March. And we look forward to continuing to update you as we hopefully go from strength to strength, putting our best foot forward in respect of every part of the business and enjoying the different speeds at which they continue to succeed and in the case of Search, recover from the reset that we announced earlier this year. So thank you all for listening, and I believe we can now open the floor to questions.

Perfect, guys. If I may just jump back in there. Thank you very much indeed for your presentation this afternoon. [Operator Instructions] I just like to remind you that a recording of this presentation along with a copy of the slides and the published Q&A can all be accessed via your investor dashboards. Guys, you can see that we have received a number of questions throughout your presentation this afternoon. And thank you to all of those on the call for taking the time to submit their questions. But Michael, Billy, at this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. And if I pick up from you at the end, that would be great. Thank you.

Yes. Thank you, Jake, and thank you, everyone on this call for submitting the questions. And we've done well to keep a bit of time towards the end to answer all of them. So it basically starts with frustration over the share price that has gone from an all-time high a little bit more than a year ago to where we are today. The frustration is, of course, very much shared among everybody on this call and the entire Board. The -- to put this into perspective, our first half -- our profit in the first half 2021 was way lower than the profit that we reported today. We already had net debt at that point in time and see our share price was more than 2x higher than it is today. So very clearly, there is a certain massive change in multiples in the business, which is not necessarily warranted given that today, the share of the very predictable Domains business is higher than it was at that point in time. But it is what it is. The -- there have been a few missteps, a failed acquisition where -- and I also see that a few questions later in the thread address this has not -- has been -- has basically kicked us of the -- of our trajectory. Changes that Google has implemented have again thrown us off of our course. And this is why where we spend so much time today talking about what we are changing in the business so that what we see today is actually the trough and we would, going forward, again see change for the positive and bit by bit replace aspirations with actual deliverables, bit by bit earning back the trust that we might have lost on this. We are very confident in the strategy. So neither Billy or I are running away. So we are still here in order to manage the business through this transition period, and we are confident that we will end -- at the end, we will come out as a stronger, more balanced business with modernized products and a streamlined cost basis, which will then be even more investable than Team Internet was just a year or 2 ago. One more specific question that was asked is the loss of the Radix account for those who have not followed the news as -- in as much detail. Radix is like a customer of the first hour of our company when we were still called CentralNic. Today, this customer is economically materially insignificant, representing something maybe like 1% of group gross profit. And we were surprised by the news because we do not agree with the termination of the agreement, but that's another matter. One day or another, we will lose this customer. The .co win that we reported is notably larger than the loss of Radix. And this is why at the time when this happened in accordance with our no match, no ad hoc release was required given that it is just too marginal in the total schemes of thing, and in particular, given that we have a notable -- that we had a notable number of wins of some of the biggest names in the industry for confidentiality reasons, I can't give any names, but we've signed up a lot of customers who are really like the -- among the who is who of the online presence, cybersecurity and brand protection industry. So this is why we consider -- while we, of course, regret Radix leaving, and it is the only notable loss of a customer that we have to expect in -- since a very long time, it has materially hardly any impact on the future prospects of the business. And well -- and given that we also not -- that this press release went out without giving us any heads up, unfortunately, we could also not set this record straight. I didn't -- also didn't expect that it would cause any waves in the investment community given that it was just a very small piece of business. Going further on the list, it is then about the -- it is then about France. Let me quickly read this. So here, there's a question, is this slightly behind schedule? So Italy, Spain and France just happened exactly on schedule, and we've given ourselves a bit of time to first learn from these experiences before going into the more significant markets, U.K. and United States. It doesn't change anything at all in the long-term prospects of that business, and we expect -- okay. And there's a question, actual site addresses somewhere so we can visit the site. I would suggest we communicate the website through Investor Meet Company afterwards so that no one has to write them down, but no problem, they're all live and you can actually go there and already shop today if you want. Next question is there has been no director purchases. As far as I can see, that is not entirely accurate. So Billy, who's here with me and also Marie Holive have both bought shares. There's only very short windows when management can actually buy shares given my rules, given that there's always something going on in the company. I myself hold shares worth many, many years, my salary, way north, above the recommendations for CEO shareholdership. So no one should read this as a lack of belief in the company. I also want to point you back to the fact that I have never, in my life, sold a single share, which many other CEOs have done when the companies were in transition periods. What is happening to your market share and what are you doing to increase it? That's, of course, a difficult question because we are in many markets, so if someone meant the main market. Here, we are growing the market share. Let's not forget we are mostly here in -- working in niches. So for example, .com, which is the largest product in the world, representing roughly 40% of all domain name sales in the world, for us, it's only about 20%. And that's not a weakness, that's a strength because we are the experts to get the domain names that others can't get, and this is where we make the money. So in these sectors like selling domain names like .co, .io, .ai, the domain names that are basically replacing .com bit by bit in the market or xyz.online and .icu, another example. We are one of the leaders. This is our specialty. And in this market, we are only winning market share. So with that, we're happy, and what we're doing for this is more sales, building regional sales hubs. For now, we've also covered North America and Asia Pacific, very largely out of Europe, but we will add resources and also addressing these markets more actively in order to penetrate them deeper. Despite the fact of not having a lot of local sales reps in Asia Pacific and North America, we've still been able to acquire some of the most formidable accounts in these markets. It's just now that we need to penetrate the market deeper that we will change our approach. And this will then help us to grow our market share even quicker than we already do. Next question is, can you elaborate how the move away from AFD towards RSOC will impact parked domain monetization for domain owners and the impact it has on the industry dynamics? That's, of course, interesting question. So domain parking has only been representing a single-digit percentage of sales of the Search division's revenues. So here, it has a lower impact. Domain parking through AFD is still live and works. We are also experimenting with using RSOC for it in many other formats. And we believe that we have some of the most innovative solutions in the market. So we pretty much still have all the domain names that have been parked with us historically are still all there. So we just need to go through this process. And most of domain investors who hold domain names, hold them for the purpose of reselling them at a later stage. So we would also not see many people dropping their domain names just because they make a little bit less money. If you own something like ai.com, you will hold on to it whatever happens to your parking income, whether it's $1,000 a month or $10 a month. It's an irrelevancy for these owners, and that is the bulk of these domain investors who will, just like Bitcoin owners, hold on for the life to the assets until they get the price that is good enough to sell them. So the industry dynamics have not changed as much as one might have thought from this observation. Please provide update on legal action against sellers of Shinez. This -- given that this is a public call, I think we have to refrain from making any comments on pending litigation. Apologies for that. Congratulations to your efforts and progress. Thank you. I appreciate it. How many Gen Z employees are working for you? Quite many. Let's not forget that Gen Z is officially defined as anyone being born 1995 or later, so that's everyone who is 30 or younger, which is actually a focus area that we're also working on. We are hiring, while people might have seen our message about us having reduced our headcount as probably every company that would have gone through a profit forecast reset like we did. We're also hiring at the same time. So we're not operating in panic mode. We are just in a very targeted fashion reshuffling the base, hiring more in territories where we can get top talent for moderate salaries, bringing in exactly Gen Z talent to help us think through problems from a perspective of the next generation, who will be the majority of customers only 2 decades away from here. So it's very important. And this is why we don't only see Gen Z as a customer base, but also as a resource to make our business more nimble going forward. My personal searches are strongly gone away from Google search for Perplexity searches. What about corporation of Perplexity in similar AI search machines? Yes, that's a very astute view. It's also a slightly biased view. I mean, biased in the most respectful and positive way. Many investors are among the more intellectual curious part of the population. When we look at the pure search volumes for transactional searches like what's the best vacuum cleaner, we see a very low market share from AI in the market. Google has, Billy, key thing was it was already, I think it was already with the Q1 results that Google presented. They've shared some data, which if I would have anticipated this question, we would have put it into the deck. So transactional searches are very rare. And also when you look at the searches where Google shows AI results. If you -- it is mostly these kind of searches when you ask like what is the meaning of intricate or some other word or what is 3 times 5, where there was a plethora of websites out there who tried to basically siphon traffic of Google and all these guys, they will have a very bad year 2025 because this is exactly what AI will destroy that someone requires a click out from Google just to get a simple answer to a question what is 1 plus 2. And they are -- you would be surprised how many people use Google as a calculator. For our searches, that is less. We actually had conversations with Perplexity. OpenAI has very different ideas about how to do this. I think the stronger answer, which we can't demonstrate today, but we will showcase that probably in the not-too-distant future is doing our own AI product and basically putting the power to ask us about using large language models about the product and roll it out to the market. This, I think we see as an even stronger approach in the German market, Vergleich.org, our main portal is an actual household brand. We've shown the numbers of website visits given that these were largely still coming from the German community. Basically, everyone in Austria, Switzerland and Germany in the last year has gone -- has visited our website twice in the last year. So there's very strong traction. So we will not shy away from the aspiration to build our own AI product and directly -- and not only rely on third-party partners when it comes to something as important as artificial intelligence. More on that, definitely at the next Investor Meet Company session. How can you be so confident of Search reset being successful in the coming quarters? As you state, what should I follow? The -- again, the first metric is do customers engage with the product, and that's a strong yes. Can we profitably procure traffic for these customer journeys? Yes, we can. So from here, it is largely a process. Google is at the same time, tightening controls of traffic quality, which, of course are things that -- this is a trend that we have been anticipating for the last 2 years and have invested millions of dollars in building compliance and traffic quality tools to keep Google happy. And I personally believe that we are more advanced on this than anybody else. But your skepticism is, of course, respected. Yes, we need to win back the trust of the market. The numbers that we presented today, I think speak volumes in terms of customer adoption and also the transition of the model where now 24% of the Search division revenue were already coming from non-AFD products. And we would expect that in the next half year, that number will even be higher. And this way, step by step, we will demonstrate to you that what we say here is not only aspirations, but actual delivery. Is Max Royde of Kestrel involved in any way with the exploring ways to maximizing shareholder returns, including capital allocation and reviewing asset ownership? Yes, of course, it is like any -- like all our Board members, he is involved in the deliberations around these topics. So that's a yes, and he is a very fair, constructive and experienced partner in this. So happy to have him. Traffic providers for AFD appears to be highly consolidated across the largest 4 to 5 providers as Google stopped onboarding new partners since 2013. Do you expect similar consolidation to emerge over time for RSOC? Yes, absolutely. So AFD was pretty much limited to a number, not much higher than the number here on screen. With RSOC, there have been more contracts out there, but don't confuse the number of contracts if you would ever come across a number with competitors in this paid traffic flow conversion. You can also have an RSOC contract just for your organic kitten video website or your music portal. So that is widely available. But only a few have the access to all the tools within RSOC to actually conduct paid -- to profitably conduct paid traffic flows, for which you need a lot of additional statistical tools. And Google has recently restrained the access to these tools to only a small subset of partners. We don't know exactly how many it is. It might still be more than has been for AFD, but it will again be a small oligopoly. Google has no interest in having to manage thousands of partners. They want to -- they want a small set of small -- sorry, a small set of successful and scaling partners, and we will be one of them. Would you consider selling the DIS division if high enough [ P/E ] offer? Well, I mean, as a public company, the entire group is always up for sale. And if I think that's a general rule. If an offer is supposed to be rejected, we would, of course, study it and consider it. However, the bar for a business of the quality of DIS is, of course, a very high bar without giving a quantum on this call today. And the bar is probably only moving upwards given that the profit of this business is expected to grow over time. But of course, yes, if there was an offer where the Board would come to a conclusion that it will be value accretive to the shareholders after all that has happened over the last 12 months, we would, of course, consider any reasonable proposal.

I'll jump in with the next one, if that's okay, Michael. So if I've understood it correctly, then it says it's a smaller concern, but I think it's an interesting one. Current ratio below 1, plan to change this, is it a focus? So if the current ratio is just current assets to current liabilities, then the fact that it stands below 1, as of the 30th of June, is purely a factor of the mix of working capital requirements between different parts of the business. So when I first joined CentralNic as it was then in 2019, I remember that one of the first topics that I discussed with Michael when he interviewed me for my role was the working capital cycle within the Domains sector, which I didn't know much about at that time, but at that time, CentralNic always traded with a current ratio of below 1. And that's a positive. It literally means that we are paid by our customers before we pay out our vendors in broad terms. So over the years since then, since I joined in 2019, that current ratio has increased to above 1 because the segment -- our Comparison and Search segments where we pay our vendors before we are paid by the customers, they have been bigger than the Domains segment. So gradually, if you trace it over 2019 through 2024, you'd see a current ratio of above 1. It now happens to be below 1 again because of the relative size of the Domains business as opposed to the Comparison and Search businesses. So there's no concern about it, and there's no plan to change it, but I would expect that when the Search segment recovers more fully in 2026, we should then see the current ratio naturally organically without us needing to intervene in any way going back above 1. But that's purely just a function of a different mix within the working capital cycles of the business.