Time Out Group losses widen but revenue is on the up

Time Out Group’s operating losses widened in the year to June 30 as the group continues its transition to a digitally led business.

The meda company saw the group’s operating loss reach £17.5 million by the end of the period, compared to £14.1 million at the same point last year.

Time Out stopped publishing the print edition of the London magazine in June after 54 years and underwent a radical transformation.

It has become the latest in a series of media outlets to abandon its physical print presence in an effort to focus on digital content and hospitality through its market arm.

In addition to operating websites, the group also operates ‘Time Out Markets’, featuring local food and drink vendors in various cities around the world. The company said its markets saw revenue growth of 54 percent last year.

But the company exited the Miami market in June ‘to focus on profitable locations’, with the US city’s market making a £2.7m loss over the period.

The company also withdrew from negotiations for a potential market in Spitalfields, London, resulting in impairment charges of £1 million.

In its latest annual results, the media and hospitality company said exceptional costs had risen to £10m, of which £7.8m was non-cash.

In addition, the concession the company pays for its turnover increased by 64 percent to £28.7 million, up from £17.5 million.

However, the group’s annual net turnover improved to reach £76m, up around 37 per cent from £55.4m a year ago. Digital turnover grew by 44 percent.

Time Out Group shares rose 4.3 percent, or 2.00 cents, to 48.50 cents on Wednesday afternoon, after rising more than 28 percent in the past year.

Looking ahead, the group said: ‘Despite the macroeconomic headwinds, we are more confident about future growth and further traction as we continue to deliver on our ambitious plans, with first-year 24 performance in line with management expectations. ‘

It said it had a “growing portfolio” of 15 markets, with a pipeline of new management deals “in advanced negotiations based on continued interest from property developers”.

Time Out Group will receive a healthy share of revenues and profits without contributing any capital costs, as part of a long-term goal to open 30 markets.

Chris Ohlund, CEO of Time Out Group, said: ‘This year we achieved important milestones in delivering further improved adjusted EBITDA – despite the challenging macroeconomic conditions – building on our recent progress and momentum.

“While this is just the beginning and there is still much to do, we are now positioned for sustainable growth and have an ambitious strategy to realize Time Out’s potential.”

He added: “Time Out, synonymous with going out and having fun, remains trusted and relevant as we inspire and enable millions of people every month to experience the best of the city.

‘Consumers are spending more and more time on digital channels, but still want to socialize in real life. Capturing these trends through the combination of media and market is powerful.’