Time Out Group plc (TMO.L) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TMO

Time Out Group plc faced challenges in recent months, driven by intensifying competition in the food market. The opening of Patty Palace by Chef Kwame Onwuachi at Time Out Market New York, Union Square, may not have met expectations, potentially due to high operational costs. No recent earnings release was found. Analysts at Berenberg have a 'Buy' rating on the stock (Source: Berenberg). There is no information on share buybacks. The company's expansion and new product launches may not be yielding desired results, amidst a dynamic market.

1.c. Company Highlights

Last Price	11.5
Change Percentage	0.00%
Open	11.05
Previous Close	11.5
Market Cap ( Millions)	41
Volume	1938
Year High	53
Year Low	10.38
M A 50	12.38
M A 200	20.95

FCF Yield	-2.35%
Dividend Yield	0.00%
ROE	-15.29%
Debt / Equity	217.42%
Net Debt / EBIDTA	660.88%
Price To Book	1.28
Price Earnings Ratio	-8.07
Price To FCF	-42.59
Price To sales	0.4
EV / EBITDA	11.39

2. Transcript Summary

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3. NewsRoom

Chef Kwame Onwuachi Brings Patty Palace to Time Out Market New York, Union Square

Sep -26

Source:

Time Out Group First Half 2025 Earnings: UK£0.019 loss per share (vs UK£0.016 loss in 1H 2024)

Feb -27

Source:

Insider Stock Buying Reaches UK£1.13m On Time Out Group

Feb -15

Source:

Time Out Group Full Year 2024 Earnings: UK£0.014 loss per share (vs UK£0.078 loss in FY 2023)

Nov -02

Source:

At UK£0.55, Is It Time To Put Time Out Group plc (LON:TMO) On Your Watch List?

Sep -25

Source:

One Time Out Group Insider Raised Stake By 27% In Previous Year

Jul -16

Source:

The past five years for Time Out Group (LON:TMO) investors has not been profitable

Jun -19

Source:

When Should You Buy Time Out Group plc (LON:TMO)?

Apr -18

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Time Out Market

Expected Growth: 6%

Time Out Market's 6% growth is driven by increasing demand for experiential dining, strategic location expansion, and diversification of revenue streams through events and partnerships. Strong brand recognition, high-quality food and beverage offerings, and effective marketing strategies also contribute to its growth.

Time Out Media

Expected Growth: 4%

Time Out Media's 4% growth is driven by increasing demand for digital advertising, expansion into new markets, and strategic partnerships. The company's strong brand recognition, high-quality content, and targeted audience engagement also contribute to its growth. Additionally, investments in e-commerce and affiliate marketing platforms have enhanced revenue streams.

7. Detailed Products

Time Out Magazine

A weekly magazine that provides entertainment, lifestyle, and cultural news to its readers

Time Out Digital

A digital platform that offers online content, including articles, videos, and reviews

Time Out Market

A physical and online marketplace that connects consumers with local businesses and experiences

Time Out Events

A platform that offers tickets and bookings for events, concerts, and festivals

Time Out Advertising

A platform that offers targeted advertising solutions for businesses

8. Time Out Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Time Out Group plc operates in the experience economy, where customers have limited substitutes for the unique experiences offered by the company. However, there are some substitutes available, such as staying at home or engaging in other leisure activities.

Bargaining Power Of Customers

Time Out Group plc operates in a niche market, and customers have limited bargaining power due to the unique nature of the experiences offered. Additionally, the company has a strong brand reputation, which reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Time Out Group plc relies on a network of suppliers, including experience providers, venues, and partners. While the company has some bargaining power due to its scale, suppliers also have some bargaining power due to the specialized nature of the experiences offered.

Threat Of New Entrants

The experience economy is a niche market, and entering this market requires significant investment in brand building, marketing, and partnerships. Additionally, Time Out Group plc has a strong brand reputation and established relationships with suppliers, making it difficult for new entrants to compete.

Intensity Of Rivalry

The experience economy is a competitive market, and Time Out Group plc faces competition from other experience providers, including online platforms and traditional experience providers. The company must continuously innovate and differentiate its offerings to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	63.74%
Debt Cost	9.77%
Equity Weight	36.26%
Equity Cost	9.77%
WACC	9.77%
Leverage	175.77%

11. Quality Control: Time Out Group plc passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Borussia Dortmund

A-Score: 5.3/10

Value: 7.0

Growth: 6.6

Quality: 5.6

Yield: 1.2

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Cyfrowy Polsat

A-Score: 5.3/10

Value: 8.4

Growth: 4.9

Quality: 3.4

Yield: 2.5

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

Prisa

A-Score: 4.4/10

Value: 8.9

Growth: 3.0

Quality: 4.3

Yield: 0.0

Momentum: 6.0

Volatility: 4.3

1-Year Total Return ->

Deezer

A-Score: 4.2/10

Value: 8.5

Growth: 5.8

Quality: 2.9

Yield: 0.0

Momentum: 5.5

Volatility: 2.3

1-Year Total Return ->

Gaumont

A-Score: 3.3/10

Value: 7.2

Growth: 1.8

Quality: 3.5

Yield: 0.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

Time Out

A-Score: 3.3/10

Value: 7.9

Growth: 6.3

Quality: 1.6

Yield: 0.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

56.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.77%

Time Out Group plc - GB00BYYV0629

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TMO

1.c. Company Highlights

Lower Quality

Expensive

Lower Yield

Medium Volatility

Average Yield

Less Volatile

Average Growth

Stable Momentum

Weak Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.37%)

6. Segments

Time Out Market

Expected Growth: 6%

Time Out Media

Expected Growth: 4%

7. Detailed Products

Time Out Magazine

Time Out Digital

Time Out Market

Time Out Events

Time Out Advertising

8. Time Out Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Time Out Group plc passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.11$

Current Price

0.12$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA