When I first moved to the capital almost 30 years ago, Time Out magazine was the bible for hip, young things looking to partake in the best of London’s entertainment and nightlife.
Okay in the late 80s I was young but far from ‘hip’, sporting as I was the last vestiges of a Chris Waddle-inspired mullet haircut. And I never quite took to the glow sticks and relentless beat of the acid house clubs of the era that passed for nocturnal entertainment in the late 80s.
But my trusty Time Out was invaluable, nevertheless. It helped me unearth a treasure trove of comedy venues in Soho, Camden and the wider West End and introduced me to the world’s rudest Chinese restaurant, which was to customer service what Donald Trump and Kim Jong Un are to world peace.
In fact I recently made a pilgrimage there with my two teenage sons. The boys failed to see the allure of this multi-storey temple to MSG.
But I digress.
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Years have passed since I’ve had need for Time Out. So when I saw the London magazine had gone free I assumed (wrongly as it turns out) the digital era had claimed another print casualty and interpreted the move off as one last desperate throw of the dice.
Not a bit of it. Last year’s £195mln IPO revealed Time Out is alive and kicking and after talking to boss Julio Bruno, the Group’s CEO, I realise there is a plan (a very decent blue-print, in fact) to make the business relevant in the era Facebook, Twitter and Tripadvisor.
Today, Time Out is present in 108 cities in 39 countries and has a global monthly audience reach of 156mln. It has developed a multi-channel model with a strong digital focus where the magazine - which is also available in New York and Chicago and 38 other cities around the world - is a “brand and marketing channel” for the company’s digital aspirations.
“It is fantastic advertising for us,” says chief executive Bruno.
“I don’t need to spend anything on brand marketing; the magazine goes to 300,000 people in London and 275,000 in New York every week; in total across all cities where we publish magazines our weekly circulation reach is nearly 900,000.”
It has also created a new business, Time Out Market, described on the site as a culinary and cultural experience – it brings together under one roof the best of the city.
The first, in Lisbon, has been a runaway success. “We had 3.1mln visitors last year; that is the largest attraction in Portugal today,” says Bruno.
Already in the black
Importantly it achieved positive EBITDA within 18 months of opening, he adds.
It is planning another in London, as well as Miami and Porto; it is scoping new locations and gets a high level of interest from landlords in many other cities.
So what is the rationale of combining media (old-world and new-fangled) with large Meccas to food and entertainment?
“We already ran events ourselves, which have been very successful; so this was a logical extension,” says CEO Bruno.
The ambition is to create a clicks and mortar business – markets on the one side, the digital offering on the other.
It raised £59mln of new investment last year to fund that strategy. Key is “monetising our large global audience”, says Bruno.
By that he means allowing the readers and users to book through the Time Out site via affiliates across a broad range of categories such as theatre, events, offers, attractions and hotels.
Time Out is also expanding its commercial partnerships, providing paid-for business profiles, as well as running digital advertising campaigns.
Annual results reveal strong growth
The annual results revealed the company’s digital revenues had grown by 39%, with e-commerce up 45%, digital advertising up 36% and the premium profiles proving particularly popular.
Time Out’s monthly audience is an impressive 156mln, up 45% year on year. But there remains a lot to do to get the most out of this iconic brand.
“We still have a lot of ground to cover, a lot of good execution is required,” says Bruno.
Time Out was loss-making for the year to December – no surprise there as it is going through a huge investment phase. It is expected to turn profit in 2018, according to the City broker Liberum.
Analyst Andrew Bryant reckons the stock is worth 195p, which is 49% ahead of the current share price. He says “the equity upside remains significant if management can execute on high profile plans”.
Bruno is no doubt they will. “We are still in the middle of the transformation; there’s a lot more to come and I’m very excited about what’s happening [to the business].”
A potted history of Time Out
Founded in 1968 in London by Tony Elliott, it started as a one-sheet pamphlet funded with Elliott’s birthday money.
The magazine was initially a counter-culture publication which took stances on issues such as gay rights, racial equality, and police harassment.
Time Out New York was set up in 1995 and today there are editorial recommendations for 108 cities in 39 countries around the world. It even has a Hebrew edition covering Tel Aviv.
Today its monthly reach is 156mln including Time Out web, social and mobile sites.