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Highlights:
- Operating Losses Reach Break-Even: Time Out’s operating losses break even this year, a notable improvement from the previous year’s £17.5 million loss.
- Global Market Expansion Continues: New Time Out Markets opened in Cape Town, Porto, and Barcelona, with further locations planned in Bahrain, Budapest, and Osaka.
- Share Placement to Fuel Growth: A planned £8 million share placement will fund capital investments for new markets and media technology enhancements.
Time Out Group PLC (LSE:TMO) has reached an operational milestone this financial year, achieving break-even on operating losses, a significant improvement from the £17.5 million loss recorded in the previous period. The media and events company, known for its distinctive blend of urban culture guides and food markets, has also managed to narrow its pre-tax loss to £8.55 million from £25 million last year, highlighting the success of its ongoing restructuring efforts and revenue growth.
Time Out’s Markets division has played a central role in driving the company’s recent progress, with three new markets launched this year in Cape Town, Porto, and Barcelona, bringing its total portfolio to nine open markets worldwide. The company is set to continue its expansion, with agreements signed for new locations in Bahrain and Budapest, slated for openings next year, and Osaka planned for 2025. Under its long-term strategy, Time Out aims to establish at least 16 markets globally by 2027, enhancing its presence in key urban locations and offering unique culinary and cultural experiences.
Achieving Operational Break-Even and Reduced Losses
This financial year marks a turning point for Time Out Group, with the company achieving operational break-even on its losses. This improvement follows a strategic focus on cost efficiency, optimized market performance, and strong audience engagement across its digital media platforms. Additionally, the company narrowed its pre-tax loss to £8.55 million, a significant reduction from the prior year’s £25 million loss. The shift reflects both the operational strength of Time Out’s Markets division and growth in its digital media business.
Chief executive Chris Ohlund underscored the importance of the Time Out brand as a bridge between its Media and Markets divisions, highlighting the unique synergies that enhance the company’s value proposition. “The Time Out brand is a critical contributor to the success of both Media and Markets,” said Ohlund, adding that the company sees substantial potential in integrating the two units for the benefit of both audiences and commercial partners. This alignment enables Time Out to attract diverse audiences, increasing its appeal to both advertisers and market visitors, while strengthening its position as a leader in curated urban culture experiences.
Expanding Time Out Markets Globally
The Time Out Markets division has continued its global expansion at a rapid pace, with three new markets opened this year in Cape Town, Porto, and Barcelona. Each of these locations has been carefully selected to maximize local cultural engagement and offer visitors an authentic culinary experience. With the addition of these new locations, Time Out now operates nine markets worldwide, creating vibrant urban spaces that connect local food scenes with a global audience.
Further growth is on the horizon, with market agreements secured for sites in Bahrain and Budapest, scheduled to open in the coming year. The company also plans to open a market in Osaka by 2025, expanding its presence in Asia. Looking toward the future, Time Out’s goal is to have a minimum of 16 markets by 2027, focusing on major metropolitan areas. This expansion strategy not only strengthens the brand’s international footprint but also supports its long-term revenue growth by diversifying income sources and building a global community of market visitors.
Raising Capital to Support Expansion and Technology
Time Out has announced a £8 million capital raise through an accelerated book build, with existing shareholders Oakley Capital Investments (LSE:OCI) and Lombard Odier Asset Management committed to participating at a 9.9% premium. The capital raised will be used to fund further market expansion and enhance media technology infrastructure, positioning the company for sustained growth. Specifically, the proceeds will support the opening of new markets in London and New York, two iconic cities where Time Out’s urban-focused brand is expected to resonate strongly.
In addition to funding market expansion, the capital will help accelerate investments in media technology, allowing Time Out to strengthen its digital media offerings and engage its audience across multiple platforms. By integrating technology with its media and market operations, Time Out aims to provide a seamless, digital-first experience for its users, supporting its position as a modern, accessible lifestyle brand that appeals to audiences worldwide.
Aligning Media and Markets Divisions for Long-Term Growth
Time Out’s dual-focus strategy emphasizes the synergies between its Media and Markets divisions, a unique approach that differentiates it from traditional media companies. The Time Out brand serves as a unifying force, creating value across both divisions by connecting cultural insights with real-world experiences. Time Out’s media platforms attract audiences who seek curated urban culture content, while its markets provide an in-person extension of these insights, creating a holistic experience that combines digital engagement with physical spaces.
By strengthening the link between its media and markets, Time Out not only enhances its brand identity but also maximizes its revenue potential. Advertisers benefit from access to an engaged audience, while visitors to Time Out Markets can explore curated experiences that reflect the brand’s editorial expertise. This dual approach supports a sustainable growth model, allowing Time Out to tap into new revenue streams and build a loyal community of readers, visitors, and commercial partners.
Future Outlook and Strategic Vision
Looking forward, Time Out’s global expansion and digital investments lay a strong foundation for future growth. The company’s operational improvements and reduced losses demonstrate a commitment to building a profitable and resilient business model. With a pipeline of new markets in key cities and a focus on aligning its Media and Markets divisions, Time Out is well-positioned to capture the interest of urban audiences and solidify its place in the cultural and culinary landscape.
The company’s strategy of creating interconnected physical and digital experiences aligns with broader trends in the lifestyle and events industry, where experiential offerings and online engagement play a crucial role in brand loyalty. As Time Out continues to grow, its unique blend of editorial content, experiential markets, and technological enhancements positions it to stand out in a competitive industry. Through its long-term vision, Time Out aims to offer unparalleled urban experiences, delivering value to audiences and commercial partners alike.
Conclusion: Strengthening a Global Urban Lifestyle Brand
Time Out Group’s journey toward profitability and expansion underscores the strength of its urban-focused brand and the synergies between its media and markets. With operational break-even achieved and a growing portfolio of markets, Time Out is poised for further growth. The planned £8 million capital raise will enable the company to fund key projects in New York and London, as well as enhance its media technology investments, paving the way for sustained success.
As the company moves forward, its unique model of integrating curated media content with real-world experiences will remain a key differentiator, allowing Time Out to build lasting relationships with audiences and partners around the world. With an ambitious goal of 16 markets by 2027 and a commitment to continuous improvement, Time Out’s strategic vision promises to shape the future of urban lifestyle experiences globally.
