Time Out (TMO) may be best known for its flagship magazine and website, but it also provides booking services on its e-commerce platform, sells premium advertising to businesses, licenses its brand to overseas franchisees and puts on live events such as silent discos. The media group - which netted £59m from its Aim listing in June - augmented organic growth with acquisitions in the first half of 2016, reducing its adjusted cash loss from £5.6m to £4.8m.
The group's virtual audience swelled by about a third year on year to 137m in June. Digital advertising and e-commerce sales leapt by nearly a quarter and a half respectively, driving digital revenues up a third to £6.8m, or more than 40 per cent of total turnover. Moreover, pro forma sales doubled at the recently acquired Time Out Market in Lisbon, as the curated assembly of bars, shops and restaurants drew a record 1.3m visitors in six months. But print revenues slid 2 per cent to £7.2m, reflecting a tough UK advertising backdrop.
Broker Liberum forecasts an adjusted pre-tax loss of £14.9m for the full year (from a £18m loss in 2015), giving a loss per share of 11.5p, widening to losses of £19.6m and 14.9p in 2017.
| TIME OUT (TMO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 140p | MARKET VALUE: | £181m | |
| TOUCH: | 139-140p | 12-MONTH HIGH: | 159p | LOW: 124p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 97p* | NET CASH: | £60m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015† | 13.5 | -8.6 | -16.8 | nil |
| 2016 | 15.1 | -8.5 | -13.0 | nil |
| % change | +12 | - | - | - |
*Includes intangible assets of £62.6m, or 48p a share | ||||
