25th Sep 2018 10:21
LONDON (Alliance News) - Time Out Group PLC on Tuesday reported solid revenue growth, helping the media and entertainment firm to narrow its half-year loss with the gap set to narrow further in the rest of 2018.
For the six months to June, Time Out's revenue rose 20% to GBP22.4 million, with cost of sales remaining flat, helping its pretax loss to shrink to GBP12.1 million from GBP16.3 million.
Time Out's adjusted earnings before interest, tax, depreciation, and amortisation loss narrowed by almost a third to GBP6.4 million, and the company expects this to narrow "significantly" in the second half of 2018.
Other key performance indicators include the monthly average of owned and operated business visitors, which rose 6% year-on-year to 17.7 million, while Time Out members rose 44%, though items sold through its e-commerce business fell 25% to 308,000.
Time Out Digital revenue rose 15% to GBP18.5 million, and 1% underlying, with Time Out Market growing the figure 50% to GBP3.8 million and 48% underlying. The Market arm runs food markets in cities such as Lisbon.
The underlying figure is on a constant currency basis and also excludes some acquisitions.
Digital advertising revenue increased 56%, and 22% underlying, while print revenue rose 5% but fell 5% on an underlying basis.
Looking forward, Time Out expects its Time Out Market business to keep performing strongly, while Time Out Digital's aim is to grow high-margin products and reduce overheads.
The company said this will lead to lower revenue than previously expected for 2018, but the move will help significantly reduce its annual loss.
Shares in the company were untraded on Tuesday, last quoted at a price of 80.30 pence each.
Related Shares:
Time Out