"Happiness business" Time Out's revenues leap, but shares dip after full-year results

William Turvill
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Time Out floated on the Alternative Investment Market (Aim) last June (Source: Time Out)

Time Out apparently likes to think of itself as being in the “happiness business”. The company was certainly happy with its 2016 performance, but investors seemed less convinced, with shares dipping this morning as the media company reported its audited full-year results.

The figures

Group revenue came in at £37.1m, up 23 per cent from £30.2m, or 17 per cent on a constant-currency basis.

Time Out said revenue growth in the second half of the year was 29 per cent, compared with 16 per cent in the first half.

Read more: Time Out revenue boosted by 3.1m visitors to its market in Lisbon

In terms of adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda), the company recorded a loss of £10.6m, but this was down from £13.1m in 2015.

Time Out’s shares dipped 1.5 per cent on Tuesday morning to 134p.

Why it’s interesting

Still best known for its magazine, founded nearly 50 years ago in London, Time Out has expanded into various areas in recent years.

The company, which floated last June, operates online, in e-commerce and even has a physical market in Lisbon, which attracted 3.1m visitors last year and saw revenues soar 115 per cent.

Time Out has signed conditional leases, subject to planning permission, to open further markets in London and Miami. It is also on the look-out for other locations.

Read more: This Time Out survey claims London is NOT the most fun city in the world

What the company said

Chief executive Julio Bruno said:

At Time Out, we like to say that we are in the ‘happiness business’. We inspire and enable people to discover, book and share what the world’s cities have to offer. As the trusted companion of both locals and visitors, we influence hundreds of millions of travel and entertainment spend around the globe. But just as importantly, our curated, high-quality content creates a valuable brand-appropriate environment for our online advertising and e-commerce partners.

We have beaten revenue expectations but we are just at the beginning of our quest to transact with our large, global audience.

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