Shares in Time Out Group plunged by around a quarter on Thursday morning after the company revealed a sharp decline in media revenues, despite growth in its food and drink markets business.
Media Division Hit by Social Media Shift
The publisher and experience brand reported that group sales fell by 7% for the year to the end of June. This was driven by a 26% tumble in media revenues to £26.6 million, which overshadowed a nearly 10% rise in food market income to £46.7 million.
Chief Executive Chris Ohlund stated the media industry was facing "a number of challenges," prompting "decisive action" to improve profits. The company cited a consumer shift away from text-based websites towards video content on social platforms, coupled with AI searches affecting website traffic.
This behavioural change has led to rapid growth in Time Out's social media audience but a sharp drop in monthly visits to its own websites.
Strategic Pivot and Food Market Expansion
Following a strategic review, Time Out said it is leaning into the trend by producing more video content and exploring new ways to monetise its social media presence. It told investors it expects the media business to return to profitability in the first half of the new financial year.
To bolster the group's performance, the company is aggressively expanding its physical food market footprint. It plans to open four new food markets in the current financial year ending June 2026, in Budapest, Manhattan, Vancouver, and Abu Dhabi.
A further two sites in Prague and Riyadh are under development, with the goal of having six new markets open by 2028. This follows recent openings in Barcelona, Bahrain, and Osaka.
Financial Performance and Outlook
The group's adjusted earnings dropped sharply by 43% to £7.1 million, significantly below its original forecast of between £11 million and £13 million.
Despite the disappointing figures, Mr. Ohlund struck an optimistic note about the future. "We have taken decisive action and as a result have seen a material improvement in performance since the financial year end," he said.
"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."
Following the update, Time Out shares were down by approximately 25% in early trading on Thursday, 18 December 2025.
