Time Out takes action to improve profitability as earnings slump

(Sharecast News) - Media and hospitality group Time Out said it is taking "swift and decisive" action to improve profitability after results for the fiscal year to 30 June came in below company targets, as the firm announced an £8m placing to help pay for restructuring costs. The group, known for its eponymous hospitality magazine (now published online) and its Time Out Markets across the world, said revenues totalled just £73.2m, down from £103.1m the year before though only slightly below the £78.7m comparative using the group's current accounting policy.

Market revenue increased 9% to £46.7m, helped by new openings in Porto and Barcelona, while media revenue slumped 26% to £26.6m which the company blamed on an audience shift to social media, growth of AI search and the US media industry slowdown.

Adjusted EBITDA dropped to £7.1m, down from £12.4m the year before, with a moderate fall in profits in markets combined with a loss in the media division.

"Following three consecutive years of improving EBITDA, in FY25 the media industry experienced a number of challenges which resulted in a lower EBITDA," said chief executive Chris Ohlund. "We have taken decisive action and as a result have seen a material improvement in performance since the financial year end. The changes will result in a stronger and more focused business, positioning Time Out for a return to profitable growth."

The company is planning four new market openings over the current fiscal year, with a minimum of six by FY28. Meanwhile, actions implemented in the media division - which include shifting more into video output on social media, cutting admin costs from centralised functions and accelerating new technologies - are expected to return the business arm back to EBITDA profitability in the first half of FY26 with revenues growing in the US and UK.

Also on Thursday, Time Out announced an £8m placing, comprising £3.6m in growth capital for technology investments and £4.4m for one-off restructuring costs that are expected to generate £3.5m in savings per annum.

"Whilst our financial performance was below our internal targets, Time Out continues to be trusted and relevant as we inspire and enable growing numbers of people every month to experience the best of the city. We are confident that actions taken are swift and appropriate and we remain focused on executing our growth strategy," Ohlund said.