Time Out Group (TMO) H2 2024 earnings summary

Executive summary

• FY24 net revenue reached £79m, up 7% year-over-year, with adjusted EBITDA (pre-IFRS16) of £8.5m, a 770% increase year-over-year.

• Three new markets opened, bringing the total to nine, with seven more planned by FY27.

• Larger, higher-margin media advertising deals and new out-of-home advertising initiatives contributed to growth.

• £8m capital raise announced to fund expansion and technology investments.

Financial highlights

• Group net revenue grew to £78.7m (+4% year-over-year); like-for-like gross revenue in constant currency up 7%.

• Adjusted EBITDA (pre-IFRS16) rose to £8.5m from £1.1m, and group adjusted EBITDA (post-IFRS16) to £12.4m from £5.3m.

• Gross margin improved to 82% (+100bps), and adjusted EBITDA margin increased to 16% (+900bps).

• Cash generated from operations increased to £12.6m, with cash and cash equivalents at £5.9m at year-end.

• Adjusted net debt increased to £33.0m, with total net debt at £57.9m.

Outlook and guidance

• Targeting 200m digital audience and 50m+ out-of-home audience by FY27.

• Plans to achieve cash breakeven in FY25.

• Pipeline includes seven new markets by FY27, focusing on top 50 global media cities.

• Expansion of out-of-home advertising and further leveraging of AI for audience growth.