ARN Media (A1N) H1 2024 earnings summary

Executive summary

• Group revenues rose 4% pro forma and 1% reported, with resilient advertising and audience growth in radio, digital streaming, and podcasting.

• EBITDA was up 10% pro forma and flat reported; EBIT declined due to lease depreciation on new Hong Kong contracts.

• NPAT declined due to higher interest, depreciation, and one-off transaction costs for the proposed SCA acquisition.

• Fully franked interim dividend of 1.2cps declared, representing ~70% of NPAT after significant cash items.

• Secured two major Hong Kong contracts, positioning for scalable market share and future revenue growth.

Financial highlights

• Total group revenues of AUD 168.1 million, up 4% pro forma and 1% reported year-over-year.

• EBITDA before significant items was AUD 35.5 million, flat year-over-year reported, up 10% pro forma.

• EBIT before significant items was AUD 22.3 million, down from AUD 25.3 million.

• Statutory NPAT was AUD 5.4 million, down from AUD 52.5 million, impacted by higher costs and absence of prior year gains.

• Net debt at AUD 86.8 million, leverage at 1.58x EBITDA, above target range.

Outlook and guidance

• Q3 revenues forecast slightly above prior year, with digital growth offsetting radio.

• Full-year revenues estimated 2-3% ahead of prior year; radio up ~1%, digital up ~25%.

• People and operating costs expected to increase 2-4% year-over-year.

• Digital audio operations targeted to reach EBITDA and cashflow positive in Q4 2024.

• Hong Kong tram revenues for balance of year forecast slightly down due to early trading conditions.