30th Mar 2021 12:12
Time Out Group PLC - London-based media and entertainment company - Says gross revenue declined 74% in the six months to the end of 2020 to GBP13.3 million and net revenue decreased 69% to GBP12.0 million year-on-year due to the forced closure of Markets division and the sharp decline in advertising revenue generated from the travel and leisure sectors. Pretax loss widened to GBP16.7 million from GBP8.5 million year-on-year. Going forward, Time Out says it enters 2021 with all Time Out Markets temporarily closed until at least the spring and advertising revenue stunted by the ongoing shutdown of the leisure and hospitality industry and curtailed travel.
Separately says it plans to raise GBP15.0 million in a fundraise involving 42.9 million shares priced at 35p each, underpinned by a cornerstone investment by Lombard Odier.
Lombard Odier has committed to subscribe for 10.0 million shares on a firm basis and up to a further 32.8 million shares subject to, among other things, clawback to satisfy demand from other existing and new investors and, in the case of the conditional placing, the approval of the company's shareholders.
Concurrent to this, Time Out launches PrimaryBid offer for up to 4.0 million shares at the same price of 35p.
"Lombard Odier has agreed to subscribe for any new ordinary shares not taken up by other investors pursuant to the retail offer," Time Out notes.
Chief Executive Julio Bruno says: "Thanks to our supportive investors, this equity raise announced today will help position us to make the most of our post pandemic opportunity, as we grow our digital advertising proposition and reopen the doors of our existing Time Out Markets and open the doors to new ones, with our Markets transforming spaces and increasing footfall to locations in great cities around the world."
Current stock price: 39.80 pence, down 5.2% on Tuesday
Year-to-date change: up 11%
By Evelina Grecenko; [email protected]
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