Good afternoon, ladies and gentlemen. Welcome to the Team Internet Group PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. 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 those 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 could give that your kind attention, I'm sure the company would be most grateful, and I'd 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 result for the six 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 look to the financials and also ultimately present the outlook of the company to you. So for those who are new to our business, we operate in three segments, the first being domains, identity, and software, the second comparison, and the third being search. In domains, we are the Internet's distribution backbone for domain names, cybersecurity products, and brand protection products.
The world-leading online presence platform, cybersecurity providers, and also global brands rely on us to create their 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've grown by around 30% from $8.3 million - $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 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 endgame 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 converted 60% into final earnings. Then in search, what are we doing here?
Search engines struggle engaging with Gen Z and even younger generations. However, these 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 per month. Out of that, we generated almost 20% into gross profit at $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 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 only engage 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 have 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 ago 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 emails from. Your email is then again your login 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've processed by 8%. So net of the two factors, this very clearly pays off. And we've also demonstrated that we've increased the share of non-domain revenues from 16% - 17%, so that's a relative 6% increase. Again, quantitative evidence that we're 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 three 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 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.
Here we will make more progress. We have the UK website is already live. The U.S. website will be live in a few weeks. 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 UK and the United States. The ultimate why do we put so much focus on 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 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.
With the step 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 seven in terms of population and a factor of nine in terms of gross domestic product . It will, of course, take years until our market shares in these markets align with the market share that we've been able to secure within Germany and the adjacent German-speaking countries. However, when you look at the potential of this expansion, it is, of course, very significant. And this is why I would not be surprised if this business will be our biggest business if we would meet again in 10 years from today. Moving on to search. Search is the business around which we triggered our forecast, the reset of our forecasts on the 4th of March.
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 1st of June 2024, we had a bit more than 6 billion visitors from all across the world.
We've even been able to grow that further to more than 7 billion users in the last 12 months, ending on the 3rd of June this year. 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 been very successful in even further growing this number. 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 per 1,000 sessions to $47 per 1,000 sessions. Those who follow us for a longer while will know that this KPI has been north of $100 in the heydays in 2023.
And people might now be worried, "Oh, 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 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 the lower click price levels virtually fully to the buy side.
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 performant 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 we see on Related Search on Content are notably higher than the click price on AdSense for Domains, which is a great basis to start from.
What we still need to figure out is, or what our machine learning needs to figure out, is how exactly to design the websites 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 - 2023 when we scaled AdSense for Domains from $75 million of revenue to $500 million 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 of 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 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 is 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 GBP 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 GBP 110 million at the 30th of June 2024. So net debt had already decreased from 30th of June 2024 through the end of 2024 and continues to decrease in the first half of this year.
Moving from near 110 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. I'll flip on to the next slide now so we can talk in more detail about the income statement. You'll see on this slide that we present effectively two 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.
The operating profit or the operating loss, rather, of GBP 7 million for the first half of this year, you'll see that that is impacted by not only a GBP 6 million foreign exchange loss in the first half of this year. That's a GBP 6.8 million swing in operating foreign exchange gain to loss as a comparative. That naturally impacts the operating profitability. Also, as well as those non-recurring foreign exchange losses, we also had GBP 7.2 million of non-core operating expenses in the first half of 2025. Those, by their nature, are non-recurring. The reason we peel out and disclose separately those operating expenses as non-core is because they are not related to the underlying trade of the business, and they are non-recurring.
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 non-core 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 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 investment. No GAAP enables 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 notes 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 two 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 to enjoy a lower rate of interest on our debt. Moving forward to the balance sheet, I'd 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 our $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.
To be down to a mere GBP 20 million drawn down on that, with GBP 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 released 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. We then expect that to normalize or grow to an 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, 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 two 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, in the short term, a more efficient working capital structure.
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 rebate 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 two sets of reasons, really, or maybe even three sets of reasons. One is the usual seasonal benefit that we have in our comparison and search segments, less so in our domains, identity, and 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, where there's, Michael alluded to earlier, Black Week and the run-up 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 cost 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. 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 serially 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 break-even now, and then they should be profitable by the end of this year so that 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. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab that's situated on the right-hand corner of your screen.
But just while the team take a few moments to review those questions that have been submitted already, I'd 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, as you can see there, we have received a number of questions throughout your presentations 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'd 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. To put this into perspective, our profit in the first half of 2021 was way lower than the profit that we reported today. We already had net debt at that point in time, and so our share price was more than two times 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. There have been a few missteps, a failed acquisition, and I also see that a few questions later in the thread address this. Has basically kicked us off of our trajectory. The changes that Google has implemented have, again, thrown us off of our course, and this is why we spent so much time today talking about what we are changing in the business so that what we see today is actually the trough.
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 nor I are running away. We are still here in order to manage the business through this transition period. We are confident that we will end at the end, that we 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 two ago. One more specific question that was asked is the loss of the Radix account for those who have not followed the news 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. 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. This is why at the time when this happened, in accordance with our Nomad, no ad hoc release was required, given that it is just too marginal in the total scheme of things. In particular, given 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 among the who is who of the online presence, cybersecurity, and brand protection industry, so this is why we, of course, regret Radix leaving, and it is the only notable loss of a customer that we have to expect since a very long time. It has materially hardly any impact on the future prospects of the business, and given that we also note that this press release went out without giving us any heads-up, unfortunately, we could also not set this record straight. I also didn't expect that it would cause any waves in the investment community, given that it is just a very small piece of business. Going further on the list, it is then about France. Let me quickly read this.
Here, there is a question: Is this slightly behind schedule? Italy, Spain, and France just happened exactly on schedule. We've given ourselves a bit of time to first learn from these experiences before going into the more significant markets, UK and United States. It doesn't change anything at all in the long-term prospects of that business. We expect okay, and then it's a question: actual site addresses somewhere so we can visit the sites. I would suggest we communicate the websites through the Investor Meet Company afterwards so that no one has to write them down. 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 direct 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 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 to the fact that I have never in my life sold a single share, which many other CEOs have done when their 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. If someone meant the domain market, here we are growing the market share.
Let's not forget we are mostly here 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 domain parking monetization for domain owners and the impact it has on the industry dynamics? That's, of course, an interesting question.
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 and 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 the main 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 onto it, whatever happens to your parking income, whether it's $1,000 a month or $10 a month. It's an irrelevance for these owners. And that is the bulk of these domain investors who will, just like Bitcoin owners, hold on for dear 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. 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. 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's 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 are also hiring at the same time. So we're not operating in a panic mode. We are just, in a very targeted fashion, reshuffling the base, hiring more in territories where we can get top talents for moderate salaries, bringing in exactly Gen Z talent to help us think through problems from the perspective of the next generation, who will be the majority of customers only two 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 to Perplexity searches. What about corporate Perplexity and 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 intellectually 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 been keeping generally. 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, it is mostly these kind of searches where you ask like, what is the meaning of intricate or some other word? Or what is three times five? Where there was a plethora of websites out there who tried to basically siphon traffic off 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 one plus two?, and you would be surprised how many people use Google as a calculator. For our searches, that is less.
We actually have 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 a 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 products 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 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? 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 our traffic quality, which, of course, then thinks that this is a trend that we have been anticipating for the last two years and have invested millions of dollars in building compliance and traffic quality tools to keep Google happy. I personally believe that we are more advanced on this than anybody else. 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. We would expect that in the next half year, that number will even be higher.
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, Kestrel involved in any way with the exploring ways to maximize shareholder returns, including capital allocation or asset ownership? Yes, of course, he is, like all our board members. He is involved in the deliberations around these topics. That's a yes. He's a very fair, constructive, and experienced partner in this. Happy to have him. Traffic providers for AFD appear to be highly consolidated across the largest four to five providers as Google stopped onboarding new partners in 2013? Do you expect similar consolidation to emerge over time for RSoC? Yes, absolutely. 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.
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. That is widely available. Only a few have the access to all the tools within RSoC to actually and profitably conduct paid traffic flows, for which you need a lot of additional statistical tools. 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. It will again be a small oligopoly. Google has no interest in having to manage thousands of partners. They want a small set of successful and scaling partners.
We will be one of them. Would you consider selling the DIS division if high enough PE offer? I mean, as a public company, the entire group is always up for sale. I think that's a general rule. If an offer is too good 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. The bar is probably only moving upwards, given that the profits of this business are still expected to grow over time.
But of course, yes, if there was an offer where the board would come to the 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 understood it correctly, then it says it's a smaller concern, but I think it's an interesting one. Current ratio below one, 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 one 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 the time. But at that time, CentralNic always traded with a current ratio of below one. 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 one because the segment, our comparison search segments where we pay our vendors before we're paid by the customers, they have been bigger than the domain segments.
So gradually, if you traced it over 2019 through 2024, you'd see a current ratio of above one. It now happens to be below one again because of the relative size of the domains business as opposed to the comparison 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 one. But that's purely just a function of the different mix within the working capital cycles of the business. Right. I think you can also take the next one, which is also quite related. Yes. How do you expect the net debt to change over the next six -1 2 months?
Having seen net debt decrease from pretty much its peak at the 30th of June 2024 through to the end of 2024 and to the current date, I would expect it to continue to decrease, but it may be moderate. The reason I say that is, although operationally, in terms of our operational cash flow forecast, we will continue to generate cash as we do every month, every quarter. It does take time to deleverage significantly. I wouldn't necessarily expect a large decrease in net debt in the second half of this year. I'm relatively pleased with where we got to in the first half of this year, even considering we were buying back shares. I would be cautious about promising a large decrease in net debt in the second half of this year. We need to balance all the different cash needs of the business.
And whilst we continue to generate cash, there does obviously come a time again when we'll look to pivot back to returning cash to shareholders.
Thanks. Thanks, Billy. To look at the redundancies in the business, can you comment on who are affected and whether those people leaving have any effect on their potential rollout? Well, first of all, we can, of course, not mention any affected person. But redundancies have come through basically streamlining both DIS and adjusting the cost base of search for the expected lower income. However, we've taken good care that the composition of the staff that we've retained for the future is quite biased towards RSoC, basically building the future products and rather leaving a smaller crew in there to maintain the legacy products. A couple of questions. How has your market share and search evolved?
Almost impossible to say, given that most players are private. Any update on Shinez? We said we can't comment, given that it's pending litigation. The FX loss?
Yeah. The FX loss is just the usual operating FX gains and losses. It's the net impact of all of the gains and losses of retranslating our balance sheet or our current assets and liabilities at the end of each period. The loss is somewhat related. The loss we experienced in H1, and this fluctuates. Sometimes it's a gain, sometimes it's a loss. We've never consistently produced FX losses, but it is somewhat related to the increase in the ratio of current liabilities to current assets we referred to earlier because in a period when our foreign currency current liabilities are increasing, we're generally then generating FX losses month to month.
If you look much, much, much further down the P&L, and I didn't want to call this out as a highlight in the interim report because it is more of an accounting point than an actual operational or trading point. But if you look right the way down the bottom of the P&L, you'll see that there's a large FX gain in respect of our investments in euro businesses. So if you look at a net profit level, there's a net loss. But if you look at it on a total gains and losses level, we actually recorded a total gain because of the large gains we've made by significant accretion in the value, the underlying value of all the euro denominated businesses we bought and assets we own.
So yes, we will be doing everything that we can to ensure that trading and operational FX losses are minimized, but the net impact of FX overall is not negative on us as an overall business. What exactly is the restructuring expense related to? There is a breakdown of the non-core operating expenses in the note. And as I referred to earlier, the restructuring expense is $4.7 million in the first half of this year. That mainly relates to severance payments to employees who've left the business. So that is literally an investment that we've made in order to reduce the cost base of the business. And we see that investment being repaid many, many times over the prospective years.
Yeah. Thanks. Thanks, Billy. Another question. Has TIG received further merger approaches? We can, of course, not comment. There's an ask to break out our financials by quarters again.
We've just followed market practice, only reporting twice a year. So we can, of course, not go back on this. Just trying to see whether there's any question that we've not answered yet. Radix again, Shinez again, Search again. Just seeing whether there's anything that we have not really addressed yet, given that we are coming to the end of the time. There's a question around the cost savings. So these are whether they are realistic. As a matter of fact, they've largely already been implemented. There's only some delay in certain changes. So yes, the number is realistic. And we've also put in certain guardrails that make sure that we can still deliver our services despite this. Right. Okay. Maybe here's a good question that might affect many. What is the reason for this significant drop from net revenue to Adjusted EBITDA conversion?
This is basically because the net revenue dropped quicker than we could adjust our expenses. And to some degree, like in search, we can also not compensate each dollar of loss in net revenue by reducing operational expenditure. This was always run as a very lean business. So even taking out 100% of the cost would not have helped keeping the profit where it was. So we found the best, from our perspective, best balance between keeping resources in the business to basically modernize and regrow each business and mitigating the impact of the relatively sharp drop of revenues given the action that Google has taken on AdSense for Domains. And that's basically where we are. And we've today laid out division by division what we plan to build even more resilient businesses for the future.
Today, the group has a much more balanced composition of its earnings with DIS as the biggest contributor, contributing 40% of the earnings, whereas in prior years, Search has been delivering more than 60% of the earnings. And as we regrow our businesses, we will also keep an eye on maintaining this balance to have three ideally equally profitable businesses and not have all eggs in one basket. We're learning from our past and taking action accordingly. And thank you all of you for the time dedicating to us today. We'll still review the questions after this call, whether we've missed anything that was not answered yet. But I think from what I see on screen, and there's a lot on the screen, I think we've addressed pretty much everything that is still showing up here. But we take this seriously. We appreciate the questions.
Thank you for giving us your time to explain ourselves and looking forward to the next Investor Meet Company session. Perfect.
Michael, Billy, if I may just jump back in there. Thank you once again for updating investors today. Could I please ask investors not to close this session? You will now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations. This won't take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Team Internet Group PLC, we would like to thank you for attending today's presentation. That now concludes today's session. Good afternoon to you all.