Time Out slashes losses by over £50m as patrons return to markets

Time Out Group’s annual losses have fallen by more than 70 percent as the easing of Covid-19 restrictions has driven customers back to the food and cultural markets.

The media and entertainment business revealed a £19.5m pre-tax loss for the 12 months ending June, compared to £71m last year when heavy lockdowns plagued the global hospitality industry.

Trade restrictions continued to affect the London-based company for much of the recent period, especially after the rise of the Omicron variant, which seriously hurt sales in December 2021.

But it saw demand recover significantly during the spring and summer as people began to travel abroad more often and workers returned to their offices.

These factors helped Time Out’s market division more than double its turnover to £28.9m and return to an adjusted profit of £2.2m after a loss of £8.4m the previous year.

Seven more markets will open in the next five years, including Riyadh, the capital of Saudi Arabia, Porto, Portugal and Abu Dhabi in the United Arab Emirates.

However, it could open more sites as it expects to sign more management agreements, under which a real estate partner finances all capital and operational expenses for a project.

Chief executive Chris Ohlund said: ‘Landlords’ interest in our market proposition has never been greater, as they look to attract visitors to increase the value of their property.

“We are in advanced negotiations with real estate developers around the world who want to make Time Out Market the anchor of their properties, as they see our concept as the world’s leading food and cultural marketplace.”

The AIM-listed company acknowledged heightened economic uncertainty and inflation concerns, but said it was “cautiously optimistic,” in part due to the popularity of its advertising platform with major brands.

Digital revenues within the media business surpassed pre-Covid volumes as the creative solutions division ran successful major campaigns with the likes of Diageo, Samsung and Google.

Time Out has gradually moved from a magazine-based format to a fully online offering in some cities, which has increased costs but increased its estimated average monthly audience by 19 percent to 72 million.

In June, the company published the last print edition of its London magazine, 54 years after founder Tony Elliott released the first as a one-page pamphlet.

Time Out Group Shares Closed 6.3 percent higher on Tuesday at 40.4 pence, though their value remains about two-thirds below pre-pandemic levels.