Time Out Group PLC (LON:TMO) saw its interim pretax losses widen as the COVID-19 pandemic led to the enforced closure of leisure venues and travel restrictions and a drop in advertising.
The magazine and events company posted a pretax loss of £16.7mln in the six months to end December 2020 compared with a loss of £8.5mln in the year-earlier period.
Revenue slumped 74% to £13.3mln as Time Out’s food and cultural markets were closed and the media division saw a sharp decline in advertising revenues from the travel and leisure sectors.
“Whilst it is clear that the current circumstances continue to have a significant negative impact on the group's trading, we do not have clarity over the duration and severity of the necessary response to COVID-19 and as such it is not possible to provide a clear outlook for the rest of the current financial year and beyond,” said chief executive Julio Bruno.
The company also announced plans to raise about £15.0mln (before expenses) via a firm placing, a retail offer, a conditional placing and a placing and open offer of 42.9 million shares at 35 pence each. The price is a 17% discount to the closing share price yesterday of 42 pence.
"Thanks to our supportive investors, this equity raise announced today will help position us to make the most of our post pandemic opportunity, as we grow our digital advertising proposition and reopen the doors of our existing Time Out Markets and open the doors to new ones, with our Markets transforming spaces and increasing footfall to locations in great cities around the world," said CEO Bruno.
As at end February 2021, the company had available cash reserves of about £6.7mln.