("Time Out," the "Company" or the "Group")
Trading Update
Time Out Markets continue to deliver revenue growth and EBITDA in line with Board expectations.
Strategy review under way for Media to review monetisation of growing audience
Summary
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The Markets business continues to grow in line with the Board's expectations. A positive outlook is supported by ongoing portfolio growth and multiple initiatives to drive like-for-like profitability in future. |
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Media revenues now expected to be approximately 20% lower than the prior year, primarily due to local commercial conditions in the |
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OPEX reductions are underway, with an annualised |
Adjusted Group EBITDA(1) for FY25 after central costs is now expected to be in the range
Markets Division
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A growing portfolio with six owned and operated and five franchise sites open, with a further six markets contracted to open by 2027, including the recent signing of a new |
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A strong pipeline of further opportunities, with new site negotiations ongoing such that further announcements are expected in this calendar year. |
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Customer spend(2) has grown by 22% in the period to date with Markets expected to generate over ten million annualised transactions from currently open sites. |
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FY25 divisional EBITDA is expected to be in the range of |
Media Division
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Global monthly brand audience reach(3)) for Media has grown to 213 million, driven by social media. |
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Media generates revenue from advertising, affiliate links and by creating customised campaign solutions for brands. The Media business has seen a decline in traditional advertising revenue following the US Election and a switch in consumer habits from web to social media and AI. As a result, Media is now expected to make a narrow EBITDA loss for FY25 (FY24 £5.3 million EBITDA profit). |
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The Board has taken the decision to reduce OPEX in this division and to conduct a strategy review to assess how best to monetise the growing audience and maximise Group returns. |
Outlook
The Group remains focused on the contracted growth that the Market proposition will deliver. Converting a strong pipeline of potential new Market sites, whilst driving like-for-like growth in existing Markets through out-of-home advertising, loyalty programmes and a growing and valuable customer database. The goal of which is to double Markets EBITDA profit over the next two years.
Whilst management review the future Media strategy, forecast guidance is withdrawn. This review will enable Time Out to deliver sustainable Media division profitability, through effective monetisation of unique content and growing global audience, whilst also driving customers and revenue to our Markets.
Commenting on the update,
"We remain focused on driving growth and profitability across our Markets whilst right-sizing the Media business to strategically benefit from the shift in audience behaviour, something that has continuously evolved throughout our ownership of this trusted global brand. The synergies between a large and growing, highly engaged real-life audience and media create the potential to develop new and unique propositions for advertisers"
NOTES
(1) Adjusted EBITDA is post IFRS16, and stated before interest, taxation, depreciation, amortisation, share-based
payments, exceptional items and profit/(loss) on the disposal of fixed assets.
(2)Gross consumer spend in owned & operated and management agreement Markets, in constant currency.
(3) Q1 CY25 vs Q1 CY24 average global monthly brand reach across all channels.
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
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For further information, please contact: |
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Tel: +44 (0)207 813 3000 |
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Panmure Liberum (Nominated Adviser and Broker) |
Tel: +44 (0)203 100 2222 |
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Tel: +44 (0)203 727 1000 |
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Notes to editors
About
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