Time Out (TMO) delivered solid results for the half year to June, with improvements across both of its core businesses. Time Out Market – pertaining to live venues that aim to bring the best food, drink and culture of a city into one place – enjoyed net revenue growth of 72 per cent to £6.6m. This was buoyed by the performance of the group’s Lisbon site, and the openings of three US markets. Chicago and Montreal are set to launch in the fourth quarter, and Dubai is due to open in 2020.
Time Out Media reported a revenue decline of 2 per cent to £18.1m. Not exactly shoot-the-lights-out – but an emphasis on higher-margin activities here (while reducing the frequency of some print publications and lower-margin live events) helped adjusted cash losses to narrow from £5.8m to £2.9m.
Growth initiatives don't come cheap, though. Capital expenditure of £20.3m was largely derived from the construction and design of new Time Out Market locations. But the Montreal site comprises a management agreement, so there’s no required spend from Time Out and capital expenditure should be much lower over the rest of 2019. In any case, it follows that net debt ramped up to £34.4m, from a net cash position of £9.4m.
Broker Liberum expects losses per share of 13.4p in 2019, against losses of 11p in 2018.
| TIME OUT (TMO) | ||||
| ORD PRICE: | 128p | MARKET VALUE: | £172m | |
| TOUCH: | 126-130p | 12-MONTH HIGH: | 137p | LOW: 69p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 55p* | NET DEBT: | 47%** | |
| Half-year to 30 Jun | Turnover*** (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 22.4 | -12.1 | -8.6 | nil |
| 2019 | 24.7 | -12.0 | -8.5 | nil |
| % change | +10 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
*Includes intangible assets of £68.8m, or 51p a share **Excludes lease liabilities of £26m ***Net revenues exclude concessionaires' share of revenue | ||||
