Time Out Group operating losses widened in the year to 30 June, as the group continues to undergo its transition into a digital-led business.
The meda business saw its group operating loss come in at £17.5million by the end of the period, up from £14.1million at the same point the previous year.
Time Out stopped publishing its London magazine print edition after 54 years in June and has been undergoing a radical transformation.
It has become the latest in a line of media outlets to abandon its physical print presence in a bid to focus on digital content and hospitality via its markets arm.
Transformation: Time Out Group is repivoting itself into a digital content and hospitality firm
As well as operating websites, the group operates ‘Time Out Markets’, featuring local food and drink vendors in different cities around the world. The firm said its markets enjoyed revenue growth of 54 per cent in the past year.
But it exited its Miami market in June ‘to focus on profitable locations’, with its market in the US city having made a loss of £2.7million for the period.
The business also withdrew from negotiations on a potential market in Spitalfields, London, resulting in impairment charges of £1million.
In its latest annual results, the media and hospitality firm said its exceptional costs rose to £10million, of which £7.8million were non-cash.
In addition, a concession the company pays for its revenue increased by 64 per cent to £28.7million, up from £17.5million.
However, the group’s annual net revenue improved, reaching £76million, up around 37 per cent from £55.4million a year ago. Digital revenue grew by 44 per cent.
Time Out Group shares were up 4.3 per cent or 2.00p to 48.50p on Wednesday afternoon, having risen over 28 per cent in the last year.
Looking ahead, the group said: ‘Despite macroeconomic headwinds, we have increased confidence in future growth and further traction as we continue to deliver against our ambitious plans, with Q1 FY24 performance in line with management expectations.’
It said it had a ‘growing portfolio’ of 15 markets, with a pipeline of new management agreements ‘in advanced negotiations on the back of continued interest from real estate developers’.
Time Out Group will receive a healthy share of revenues and profits while not contributing any capital costs, as part of a long-term goal to open 30 markets.
Chris Ohlund, chief executive of Time Out Group, said: ‘This year we achieved important milestones in delivering a further improved adjusted EBITDA – despite the challenging macroeconomic conditions – building on our recent progress and momentum.
‘While this is only the beginning and there is still much to do, we are now positioned for sustained growth and have an ambitious strategy to realise Time Out’s potential.’
He added: ‘Synonymous with going out and having a good time, Time Out continues to be trusted and relevant as we inspire and enable millions of people every month to experience the best of the city.
‘Consumers are increasingly spending time on digital channels but still want to socialise in real life – capturing these trends through the combination of Media and Market is powerful.’