Time Out (TMO) achieved double-digit revenue growth in the first half, and underlying revenue growth was still up 13 per cent year on year. That pro-forma growth is stated as if its Time Out Market business, acquired in June 2016, was owned through both periods. Operating losses widened to £15.6m from £7.3m, due to ongoing investment into restructuring Time Out Digital, the other core division. And while group costs in the second half were originally forecast to be lower than the first, the company now says these will be flat. Even so, trading is in line with its expectations for the full year.
Within digital, e-commerce lifted sales by 51 per cent, largely driven by revenue from affiliate partners in the travel sector such as Booking.com. In terms of advertising, digital improved while print declined by 3 per cent – better than industry peers and attributed by bosses to brand strength. Management also highlighted digital’s live events offering, generating sponsorship and ticketing money: 80,000 tickets were sold last year for almost 250 events.
Time Out Market brings Lisbon’s best food and cultural experiences together on one site. Revenues here rose 59 per cent to £2.6m. The same concept is due to be rolled out in further cities including Miami, London and Porto.
Analysts at Liberum forecast pre-tax losses of £19.5m for the year to December 2017, worse than the £15.1m losses in 2016. They expect the group to reach profitability in 2019.
| TIME OUT (TMO) | ||||
| ORD PRICE: | 142p | MARKET VALUE: | £189m | |
| TOUCH: | 141-143p | 12-MONTH HIGH: | 144p | LOW: 133p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 82p* | NET CASH: | £30.9m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax loss (£m) | Loss per share (p) | Dividend per share (p) |
| 2016 | 15.1 | -8.5 | -13.0 | nil |
| 2017 | 18.7 | -16.3 | -11.9 | nil |
| % change | +23 | - | - | nil |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £70m, or 53p a share | ||||
