23rd Mar 2020 14:18
(Alliance News) - Media and leisure firm Time Out Group PLC reported significant revenue and profit growth on Monday, though Covid-19 has had a major impact on trading.
Time Out - which operates a number of marketplaces in several cities - was meant to release 2019 results on Thursday, but after the UK Financial Conduct Authority requested firms postpone publication it has released a trading update instead.
For 2019, Time Out said gross revenue has risen 58% to GBP77.1 million, driven by the openings of further markets, which contain a selection of bars and restaurants under one roof. During the year, it opened five new markets, all in North America.
Time Out expects a pretax loss of GBP20.5 million, from GBP15.2 million a year before amid the spending on new markets, and adjusted earnings before interest, tax, depreciation, and amortisation is seen narrowed to GBP4.7 million from GBP8.1 million.
In the Media business, advertising revenue rose 10% to GBP16.4 million, while overall global brand audience growth was 18% to 63.2 million.
"2019 was an exciting year for Time Out. The successful opening of five new Time Out markets saw the transformation of this division from a single, highly popular market in Lisbon to a global portfolio, demonstrating the concept can be effectively replicated in cities around the world," said Chief Executive Julio Bruno.
"Notwithstanding recent developments, the success of markets opened in 2019 indicates that there is a growing demand for this concept globally as landlords look for ways to increase the attractiveness and footfall of their properties."
"Our Media business also made significant progress during the period. Digital advertising growth of 10% materially outperformed a challenging market and the continued focus on higher-margin activities and operational efficiencies has rapidly improved the economics of the division. With audience growth of 18%, Time Out has strengthened its position as the leading global brand for experiencing the best of a city," Bruno continued.
A week ago, Time Out said it had closed marketplaces in the US and Portugal, five in total, due to the outbreak of Covid-19. The US markets are in Miami, New York, Boston, and Chicago.
"The outbreak of the Covid-19 pandemic has had a significant recent impact on trading with the temporary closure of all six Time Out markets and a slowing of advertising revenue," said Bruno.
"We are responding quickly to these unprecedented times with a temporary 'Time In' rebrand, a launch of an e-version of the magazine, complementing our online digital content, a review of the operating structure and preserving our cash position."
"We are in the process of assessing the potential financial impact, which will be highly dependent on the duration of the outbreak, coupled with the response from governments and consumers alike. However, in the meantime, our primary concern is the wellbeing and safety of our employees, their families, our guests, concessionaires and their teams," he added.
Time Out did not say when it will be releasing annual results, but it does not expect any deviation from these figures.
Shares fell 22% on Monday afternoon in London at a price of 41.00 pence each.
By George Collard; [email protected]
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