Time Out (TMO) , a global media and hospitality business, announced audited full-year results for FY23 ended June 30 2023.
Time Out reported a 43% increase in gross revenues to £104.6m and a 37% increase in net revenues to £76.0m. Gross profit increased by 39% to £61.9m with gross margins +1% points.
Time Out's adjusted EBITDA jumped 336% to £5.3m from £1.2m the previous year with both the Media and Markets divisions delivering positive adjusted EBITDA. Operating loss increased to £17.5m from £14.1m in FY22, with the £3m year-on-year movement comprising +£4.2m improvement in EBITDA less £7.7m increase in exceptional costs to £10.0m, of which £7.8m were non cash.
The company ended the period with £5.1m in cash on 30 June 2023, up from £4.8m a year ago. Adjusted net debt increased to £24.8m from £17.1m in FY22.
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A positive full-year update from Time Out, with double digit increases in gross revenues and profit, and a much improved adjusted EBITDA across both divisions - Market and Media.
Time Out Market saw a net revenue increase of 48% with EBITDA margin up 94 basis points on increasing footfall and ongoing operational improvements. The division's growing portfolio of 15 markets includes 6 open and 9 contracted sites set to open between 2023-2027 with Cape Town, Vancouver, Riyadh, Barcelona, and Bahrain signed in FY23.
Time Out Media similarly saw revenues grow 25% year-on-year, underpinned by digital revenue growth of 44%. Gross margin was up 300 basis points to 80% from last year's 77%. The division's monthly brand audience grew 16% to 83m as a result of the company's strategy to bring Time Out content to digital channels. Similarly to Market, Media's order book is growing with an expanding client roster of blue-chip brands.
Overall, Time Out enters FY24 with strong momentum amid growing recurring revenues and opening of new Market locations, which combined with ongoing cost control measures should result in improved cashflows and profitability next year. Q1 2024 performance so far is in line with management expectations.
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