Time Out (TMO) AI Stock Analysis

• Market Cap: £49.14M
• Dividend Yield: N/A
• Average Volume (3M): 54.25K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: -1.82%
• EPS Growth: 67.47%
• Country: UK
• Employees: 631
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 357,408,100
• 10 Day Avg. Volume: 65,932
• 30 Day Avg. Volume: 54,254
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £19.00
• Price Target Upside: 38.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: 19.00p ▲(38.18% Upside)

The overall stock score is driven by mixed financial performance and bearish technical indicators. However, the strategic expansion into India provides a positive outlook for future growth. The negative P/E ratio and lack of dividend yield weigh on the valuation.

Positive Factors

Strategic Expansion

The expansion into India opens new revenue streams and enhances brand presence, leveraging local expertise to engage with a digital-first audience.

Operational Improvement

Improved gross profit margin indicates better cost management, contributing to operational efficiency and potential profitability.

Cash Flow Generation

Significant improvement in operating cash flow demonstrates strong cash generation ability, supporting business sustainability and growth.

Negative Factors

Negative Revenue Growth

Negative revenue growth indicates challenges in maintaining market share and could impact long-term financial health if not addressed.

High Financial Leverage

Increased financial leverage can strain resources and limit flexibility, posing risks to stability and growth if not managed effectively.

Media Division Challenges

Significant revenue decline in the media division highlights challenges in adapting to market shifts, potentially affecting overall business performance.

Time Out Business Overview & Revenue Model

Company Description

Time Out Group plc, together with its subsidiaries, engages in media and entertainment business. It operates through two segments, Time Out Market and Time Out Media. The Time Out Market segment operates bars; and engages in retail and events business activities. The Time Out Media segment engages in the sale of digital and print advertising; local marketing solutions, live events tickets, e-commerce transactions, and franchise activities. As of June 30, 2021, it operated in 331 cities in 59 countries. Time Out Group plc was founded in 1968 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Time Out Group generates revenue through a diversified model that includes both media and hospitality streams. In the media sector, the company earns money through advertising, sponsorships, and partnerships across its digital platforms, print publications, and social media channels. These include display ads, branded content, and affiliate marketing links. In the hospitality sector, Time Out Market generates income from leasing space to food and beverage vendors, ticketed events, and branded merchandise sales. The synergy between its media and market operations allows Time Out to leverage its brand and audience reach, creating opportunities for cross-promotion and enhanced revenue potential.

Time Out Financial Statement Overview

Summary

Time Out is showing signs of operational improvement with better margins and cash flow generation. However, challenges remain with negative revenue growth and high financial leverage, which could pose risks if not managed properly.

Income Statement

The company's gross profit margin improved slightly to 62.8% in 2024 from 59.1% in 2023, indicating better cost management. However, the net profit margin remains negative, with a narrower net loss of -4.4% compared to -25% in 2023. Revenue growth is negative at -1.46%, showing a slight decline in revenue year-over-year. The EBIT margin is still negative but has improved significantly, indicating a move toward operational efficiency.

Balance Sheet

The debt-to-equity ratio increased to 2.17 in 2024, up from 1.76 in 2023, reflecting higher financial leverage. Return on equity remains negative due to net losses, but the equity position is relatively stable. The equity ratio has decreased slightly to 24.5% from 29.7%, indicating a higher proportion of liabilities.

Cash Flow

Operating cash flow has improved significantly, turning positive and increasing to 9.68 million in 2024 from 3.27 million in 2023. However, free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	103.11M	104.64M	72.93M	77.14M	48.78M
Gross Profit	64.73M	61.89M	44.58M	46.43M	32.05M
EBITDA	8.60M	-6.25M	-2.95M	-1.64M	-7.30M
Net Income	-4.59M	-26.12M	-19.56M	-18.35M	-14.63M
Balance Sheet
Total Assets	117.62M	104.81M	120.75M	178.06M	140.15M
Cash, Cash Equivalents and Short-Term Investments	5.90M	5.09M	4.85M	13.42M	18.09M
Total Debt	62.72M	54.75M	49.40M	75.73M	31.08M
Total Liabilities	88.82M	73.67M	65.43M	100.17M	53.27M
Stockholders Equity	28.85M	31.15M	55.34M	82.77M	88.83M
Cash Flow
Free Cash Flow	-965.00K	403.00K	-8.95M	-31.67M	-31.17M
Operating Cash Flow	9.68M	3.27M	-7.04M	-3.58M	-13.27M
Investing Cash Flow	-10.59M	-2.80M	-1.91M	-28.04M	-8.36M
Financing Cash Flow	1.80M	-109.00K	-5.49M	20.79M	16.88M

Time Out Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TMO, the sentiment is Negative. The current price of 13.75 is below the 20-day moving average (MA) of 14.28, below the 50-day MA of 15.81, and below the 200-day MA of 32.17, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 24.77 is Positive, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TMO.

Time Out Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEO	75 Outperform	£5.28M	16.82	11.05%	5.50%	6.47%	-10.00%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
EMAN	54 Neutral	£37.38M	―	-21.11%	―	17.96%	-216.22%
ZIN	54 Neutral	£16.46M	―	-12.15%	―	-19.68%	―
TMO	50 Neutral	£49.14M	―	-24.18%	―	-1.82%	67.47%

Time Out Corporate Events

Time Out Group Updates Share Capital Structure

Time Out Group plc has announced the issuance of 42,334 ordinary shares, bringing its total share capital to 357,408,117 shares, each carrying one voting right. This update is significant for shareholders as it affects the calculation of their interests under the Financial Conduct Authority’s Disclosure and Transparency Rules, potentially impacting their reporting requirements.

Time Out Group Updates Total Voting Rights

Time Out Group plc has announced an update on its total voting rights following the issuance of 40,000 ordinary shares, bringing the total to 357,365,783 shares. This update is relevant for shareholders as it affects the calculation of their interests under the Financial Conduct Authority’s Disclosure and Transparency Rules. The announcement reflects the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting shareholder engagement and market perception.

Time Out Group Expands into India with New Franchise Agreement

Time Out Group plc has announced a franchise agreement with Quint Digital Limited to launch Time Out India, expanding its media and hospitality business into the Indian market. This agreement will introduce digital Time Out India channels and explore the potential for Time Out Markets in India, enhancing the brand’s presence and creating new revenue streams through franchise fees and market exclusivity. The partnership aims to build a vibrant ecosystem in India, offering curated content and experiences for consumers and advertisers, and leveraging Quint Digital’s expertise in digital content and AI-driven analytics to engage with India’s digital-first youth and visitors.

Time Out Group Reports Growth in Markets Amid Media Division Challenges

Time Out Group plc has reported a trading update for the fiscal year ending June 2025, highlighting growth in its Markets division, which aligns with board expectations. The company is expanding its portfolio with new market sites, including a recent Manhattan location, and aims to double its Markets EBITDA profit over the next two years. However, the Media division faces challenges with a 20% revenue decline due to changing consumer habits and local conditions in the USA. A strategic review is underway to better monetize its growing audience, while operational cost reductions are being implemented to maintain cash generation. The company is focusing on leveraging synergies between its media and market operations to create new opportunities for advertisers.