Time Out reports first-half revenue decline

(Sharecast News) - Time Out Group reported a 3% decline in revenue to �50.9m for the six months ended 31 December on Friday, compared to �52.5m in the prior year.

The AIM-traded publisher and hospitality operator said despite that, it reiterated its full-year EBITDA expectations, citing strong performance in its markets division and accelerating venue openings.

Market net revenue grew 12% year-on-year to �36.5m, with like-for-like growth of 3%.

Adjusted EBITDA for the markets business rose 12% to �6.9m, offsetting a weaker performance in the media division, where revenue declined 19% to �14.4m due to sector-wide weakness linked to US and UK election cycles.

The media segment posted an adjusted EBITDA loss of �0.6m, compared to a �2.5m profit a year earlier, though a stronger second half was anticipated.

Time Out recorded an operating loss of �2.6m for the half-year, widening from a �0.1m loss in the prior year period.

As at 31 December, Time Out had cash of �4.8m and borrowings of �39.9m, leading to an adjusted net debt position of �35m, compared to �27.7m a year earlier.

Including IFRS 16 lease liabilities, reported net debt stood at �74.7m.

The company also announced a new �5m convertible loan note instrument priced at 50p per share, representing a 16% premium to its current share price.

"We anticipate further growth from both new and existing Markets in the second half which, with a more favourable media background post the UK and US election, and careful cost control gives us confidence that we will deliver EBITDA in line with market expectations for the year to June 2025," said chief executive officer Chris Ohlund.

At 0814 GMT, shares in Time Out Group were up 2.33% at 44p.

Reporting by Josh White for Sharecast.com.