Media group Time Out has seen a hesitant rise in its share price today, as the group announced its revenues had increased but its losses had more than doubled as it continued its investment programme.
Aim-listed Time Out's group revenue shot up by 13 per cent to £18.7m in the first half of 2017 compared to the same period a year earlier, as the digital business performed well.
Digital revenues grew 25 per cent, as e-commerce went up by 51 per cent, business listings by 55 per cent and digital advertising by eight per cent.
The print business fared less well but still outperformed the market, according to Time Out. Print advertising fell by three per cent year on year – revenue from that source was flat in the UK and up in Portugal, but down in the US.
Earnings losses increased by 93 per cent, as the group made earnings before interest, tax, depreciation and amortisation (Ebitda) of negative £9.37m.
The group's shares were up 0.71 per cent at the time of writing.
Why it's interesting
Time Out stayed positive regarding its increased operating loss, saying it reflected “continued investment in Time Out Digital”.
This shows signs of paying off, as Time Out's monthly audience increased 77 per cent to 242m people driven by increased Facebook video content.
The group is also expanding its market concept, with a Miami location set to open in 2018. This follows the launch of the first market in Lisbon in 2014, which generated £2.6m of revenue in the first half of this year.
A restructuring of the business was also paying off, Time Out reported. It has “reorganised its staff resources and skillsets” and made several new appointments, including that of digital chief executive Christine Petersen.
What Time Out said
“Our growing global network of owned and operated businesses and investment in our platform and product offering provide further growth and monetisation opportunities, as we continue to inspire millions of people to make the very best of cities around the world,” said chief executive Julio Bruno.
“Looking forward, trading remains in line with our expectations for the full year. As in previous years, revenue will be weighted to the second half and our operating leverage, combined with the global realignment of Time Out Digital and the continued success of Time Out Market, is expected to substantially improve our operating margin.”