Time Out Group Plc · LSE:TMO
Time Out — FY2023 Earnings Presentation
31 slides from Time Out's earnings presentation, Nov 8, 2023
Slide 1: Full Year Results 2023
Full Year Results 2023 For the 12 months ended 30 June 2023 0
Slide 2: We inspire & enable people to experience the best of the city
TIME OUT GROUP •The Strong revenue world's and EBITDA only global media &growth across hospitality bothdedicated brand Markets and Media to city life We inspire & enable people to experience the best of the city Owned & Operated food and cultural Global Media advertising revenues from markets, plus
Slide 3: FY 23 Outlook
TIME OUT GROUP Strong revenue and EBITDA growth across both Markets and Media FY 23 Outlook Ongoing progress resulting in Continuing to leverage synergies and GROUP improved profitability further realise the brand's global potential 6 existing Markets 15 Markets open by 2027 MARKETS 5 signed in the
Slide 4: Net Revenue
TIME OUT GROUP Foundations in place for sustained profitable growth 12 months ended 30 June 2023 (£m) Group Markets Media + 37% Net Revenue 76.0 + 48% + 25% 42.8 33.1 55.4 26.5 28.9 FY22 FY23 FY22 FY23 FY22 FY23 EBITDA(1) + 336% + 94% + 81% 4.3 FY22 FY23 FY22 FY23 FY22 FY23 1) Adjusted EBITDA is ope
Slide 5: Turnaround strategy is working
TIME OUT GROUP Turnaround strategy is working £'000 Gross margin in % GROUP REVENUE £30.3m £37.1m £44.4m £48.8m £63.3m £37.8m £55.4m £76.0m 81% 80% 80% 73% 66% 59% 55% 56% £5.3m £1.2m -£8.1m -£4.7m -£10.2m -£13.1m -£14.2m -£25.1m Covid impact * 2021” Exceptional 18 months financial year 4 2022 & 202
Slide 6: Media + Market synergies
TIME OUT GROUP Media + Market synergies 2 83M+ GLOBAL MONTHLY BRAND AUDIENCE 1 3 CURATION BOOSTING DIGITAL OF THE BEST ADVERTISING OF THE CITY REVENUE A PHYSICAL BRAND EXTENSION A TRUSTED BRAND 6 4 MARKET THE KUDOS EXPANSION OF BEING THE STRENGTHENS BEST OF BRAND 5 THE CITY GLOBAL MEDIA REACH DRIVES
Slide 7: Time Out Market
Time Out Market = st ON
Slide 8: Global expansion of Time Out Market: continued focus on quality of offering
TIME OUT MARKET Global expansion of Time Out Market: continued focus on quality of offering Based on currently signed agreements SIGNED OWNED & MANAGEMENT OPERATED FY27 AGREEMENTS MARKETS RIYADH FY26 PRAGUE ABU DHABI OSAKA FY25 VANCOUVER FY24 BAHRAIN CAPE TOWN COVID lockdowns PORTO FY21 FY22 BARCELO
Slide 9: Sourcing high-quality leads for new Time Out Markets
TIME OUT MARKET Sourcing high-quality leads for new Time Out Markets Collaboration with leading landlords and developers Focus on Top 50 cities globally – aligned with Media synergies Robust location validation process based on critical success factors Growing the portfolio with high-quality sites 8
Slide 10: Flagship Endorsed Model and Transit Model
TIME OUT MARKET As we refine our leads, we focus on brand protection + brand expansion Developing format flexibility to best match our Market proposition to the locality and to be able to explore more opportunities Flagship Endorsed Model Transit Model Prime city, Secondary cities, malls, up- Transi
Slide 11: Optimising our operations to improve profitability per sq ft
TIME OUT MARKET Optimising our operations to improve profitability per sq ft % I Commercial Improved Optimised Updated Improved use & renegotiations commissions operational curation analysis with landlords with vendors execution & occupancy rates of data 10
Slide 12: Our next openings: maintaining curation of the city's best chefs
TIME OUT MARKET Our next openings: maintaining curation of the city's best chefs • Prime location at V&A Waterfront • Located in Porto old town, a UNESCO World Heritage site • Opening 17 November 2023 • Opening H2 of FY2024 • 13 kitchens, 3 bars, mezzanine event space • 14 kitchens, 2 bars | Outside
Slide 13: Not just food: c.1,000 cultural activations per year
TIME OUT MARKET Not just food: c.1,000 cultural activations per year, leveraging Media expertise We give local Events to drive Culture that Selling outside Time Out Media artists a platform bar sales attracts locals of the Market activations 12
Slide 14: Time Out Media
Time Out Media Movies on the River – sponsored by Häagen-Dazs13
Slide 15: Our Media model: driving profitable growth in US/UK, expanding to EU/APAC
TIME OUT MEDIA Our Media model: driving profitable growth in US/UK, expanding to EU/APAC AUTHENTIC CURATED CONTENT: WE HAVE TURNED OUR GROWING BEST OF THE CITY AUDIENCE INTO DIGITAL REVENUE HIGHER CAMPAIGN DISTRIBUTED VIA VALUE & REPEAT DIGI-PHYSICAL CLIENTS PLATFORM Grow the Monetise the audience a
Slide 16: The best of the city – our content continues to have impact and influence
TIME OUT MEDIA The best of the city – our content continues to have impact and influence UK & US on IG + Time Out editors have Global media picking When Time Out calls, TikTok: >12m video regular TV appearances up our stories big names come views per month Michelin star chef Alain Ducasse at Time Ou
Slide 17: Higher value bespoke creative solutions for clients
TIME OUT MEDIA Higher value bespoke creative solutions for clients Our partners get to connect with our brand, content and audience across 360-degrees channels – leveraging the entire Time Out platform Barcelona food festival with Time Out London podcast, Long-term campaign with 12k+ attendees spons
Slide 18: Financials
Financials 17
Slide 19: Introducing Matt Pritchard
TIME OUT GROUP Introducing Matt Pritchard Matt Pritchard Time Out Group CFO • 25+ years of experience of value creation in Retail and FMCG, in both private equity and listed environments • 2014-2023 CFO of Hotel Chocolat PLC – in this role he formulated long term growth strategies including a pivot
Slide 20: Group Summary – P&L
TIME OUT GROUP Group Summary – P&L Year to June Year to June 2023 2022 Change £’000 £’000 • Market net revenue growth of 48% as a result of Market revenue 42,848 28,924 48% improved offer and consistent high quality Media revenue 33,130 26,479 25% • Media gross revenue growth of +25% YoY underpinned
Slide 21: Cash Flow: point of inflection with operations now cash-generative
TIME OUT GROUP Cash Flow: point of inflection with operations now cash-generative Year ended Year Ended June 2023 June 2022 £’000 £’000 Cash generated from/ (used in) operations 4,735 (4,544) • Cash generated from operations represents positive Interest paid (1,033) (2,497) adjusted EBITDA Tax paid
Slide 22: Cash and debt: Refinancing gives platform for growth
TIME OUT GROUP Cash and debt: Refinancing gives platform for growth GBP m 30 June 2023 30 June 2022 Cash and cash equivalents 5.1 4.8 Borrowings (29.9) (21.9) Adjusted net debt (24.8) (17.1) IFRS 16 liabilities (24.9) (27.4) Net debt (49.7) (44.5) Key terms of finance Four-year Crestline facility re
Slide 23: Balance Sheet
TIME OUT GROUP Balance Sheet 30 June 2023 30 June 2022 £’000 £’000 Non-current assets Intangibles assets - Goodwill 29,472 29,893 Intangible assets – Other 6,786 8,219 Property, plant and equipment 26,189 37,851 • Exit of loss-making Miami site Right-of-use assets 17,843 20,490 Other receivables 4,0
Slide 24: Outlook: scaling proven models and well positioned for sustained growth
TIME OUT GROUP Outlook: scaling proven models and well positioned for sustained growth • Over the next 18 months five new sites are scheduled to open, increasing revenues and EBITDA MARKETS • In addition to maturing profitability of O&O Markets, signed Management Agreements will generate minimum c.£
Slide 25: Local artist mural Time Out Market New York
Local artist mural Time Out Market New York 24
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Slide 27: Appendix
Appendix 26
Slide 28: Senior Management Team
TIME OUT GROUP Senior Management Team GROUP CEO GROUP CFO MEDIA CEO MARKETS CEO Chris Öhlund Matt Pritchard Stacy Bettman Sandy Hayek Became CEO in 2021, with over 25 years’ Joined 2023 and has 25+ years of Joined in 2018 after 25 years of Joined in 2021 to launch the Dubai leadership in internation
Slide 29: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT INTENDED FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR THE REPUBLIC OF SOUTH AFRICA O
Slide 30: Disclaimer (cont'd)
Disclaimer (cont’d) No representation, warranty or undertaking, express or implied, is or will be made or given and no responsibility or liability is or will be accepted by the Company or Liberum (apart from any responsibilities or liabilities that may be imposed by the Financial Services and Market
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