Team Internet Group — Ten-year deal to run the .co domain

Team Internet’s 10-year deal to run the .co top-level domain (TLD) enhances the growth prospects for Domains, Identity and Software (DIS), the group’s highest-quality division in terms of revenue diversity and visibility. Growth prospects may strengthen with ICANN’s planned new Generic Top-Level Domains (gTLD) Program, scheduled for 2026. This is welcome news at a time when visibility for Search is low. Our estimates are unchanged, but we see upside potential to our 55p/share sum-of-the-parts (SOTP) valuation for DIS as prospects strengthen, and believe that the current valuation factors in modest prospects for DIS and Comparison and no value for Search.