Time Out targets new worldwide food markets as media sales tumble

Time Out is targeting new openings for its worldwide food markets as its media business grapples with tumbling sales amid a social media shift.

Shares in the company plunged by around a quarter on Thursday morning following the update.

The boss of the firm said it had taken “decisive action” to improve profits as a result of the media industry experiencing “a number of challenges”.

It is planning to open four new food markets in the current financial year to the end of June 2026, rising to six by 2028.

These will be in Budapest, Manhattan, Vancouver and Abu Dhabi, as well as two under development in Prague and Riyadh.

It follows the opening of markets in Barcelona, Bahrain and Osaka during the latest financial year.

Revenues grew by nearly a 10th for the markets division to £46.7 million for the year to the end of June, compared with the prior year.

But Time Out said this growth was offset by media revenues tumbling by 26% to £26.6 million, resulting in group sales declining by 7% year-on-year.

Adjusted earnings for the group dropped sharply by 43% to £7.1 million – well below its original forecast of between £11 million and £13 million.

Time Out said its media sales were impacted by an ongoing shift in consumer behaviour away from text-based websites and towards video, particularly on social media, as well as AI searches impacting traffic to its website.

This has resulted in rapid growth for its social media audience, but a sharp drop in monthly website visits.

The company said it had completed a strategic review of the division and it was now leaning more into the shift by producing more videos and finding new ways to cash in on social media.

It told investors it was now expecting the media business to return to profitability for the first half of the new financial year.

Chris Ohlund, chief executive of Time Out Group, said: “We have taken decisive action and as a result have seen a material improvement in performance since the financial year end.

“The changes will result in a stronger and more focused business, positioning Time Out for a return to profitable growth.

“Whilst our financial performance was below our internal targets, Time Out continues to be trusted and relevant as we inspire and enable growing numbers of people every month to experience the best of the city.”

Time Out shares were down by around 25% in early trading.