Business
Trading update for the year ended 31 December 2019
Trading update for the year ended 31 December 2019.
About this update from Time Out Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1594H\n Time Out Group plc\n 23 March 2020\n \n \n \n \n 23 March 2020\n \n \n \n \n \n Time Out Group plc\n \n \n (\"Time Out\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Trading update for the year ended 31 December 2019\n \n \n \n \n A year of transformation with the opening of five new food and cultural markets\n \n \n Time Out Group plc (AIM: TMO), the global media and leisure business, in accordance with the announcement by the FCA on 22 March 2020, in which it requested all listed companies observe a moratorium on the publication of preliminary financial statements, will not be releasing its preliminary results for the year ended 31 December 2019 on 26 March 2020 as scheduled. Today the Company issues a trading update for the 2019 financial year and does not expect any deviation from these published figures once the audited results are announced.\n \n \n \n \n \n Financial highlights\n \n \n \n \n \n \n · \n Significant year-on-year growth with gross revenue increasing by 58% to £77.1m (2018: £48.8m) and net revenue by 30% to £63.3m (2018: £48.8m), driven by Time Out Market expansion(1)\n \n · \n Group gross profit growth of 45%, further benefitting from the continued progression of gross margin to 73% (2018: 66%)(2)\n \n · \n \n Group adjusted EBITDA(3) in line with expectations, with a 42% year-on-year improvement to a £4.7m loss (2018: £8.1m loss), despite a year of significant investment in Time Out Market cost base\n \n · \n Group operating loss declined by 18% to £13.4m (2018: £11.4m); 10% underlying improvement excluding the benefit of IFRS 16 adoption and the prior year gain of £4.5m on disposal of Flyt\n \n · \n \n Time Out Market \n \n net revenue grew by 158% to £23.2m (2018: £9.0m), driven by a combination of Lisbon's continued progress (7% growth) and the opening of five new markets in North America\n \n · \n \n Time Out Media \n \n EBITDA loss improved by 72% to £2.2m loss (2018: £7.9m loss), with the key milestone of positive EBITDA achieved in H2\n \n \n · \n Adjusted net debt(4) of £29.9m at 31 December 2019 (2018: £4.8m), which includes cash of £13.4m and debt of £43.3m. Reported net debt was £62.3m including £32.4m of IFRS 16 lease liabilities\n \n · \n Funding: Successful £17.1m equity placing and additional £15.5m debt secur...