ARN Media (A1N) H1 2024 earnings summary

Executive summary

• Group revenues rose to AUD 168.1 million, up 1% reported and 4% pro forma, with strong digital audio and regional growth offsetting metro softness.

• EBITDA before significant items was AUD 35.5 million, flat reported and up 10% pro forma; EBIT before significant items was AUD 22.3 million, down 5% pro forma.

• Statutory NPAT declined to AUD 5.4 million, impacted by higher depreciation, financing costs, and one-off SCA transaction costs.

• Interim dividend declared at AUD 0.012 per share, fully franked, representing 70% of NPAT after significant cash items.

• Cody Outdoor secured major Hong Kong contracts, positioning for scalable market share and expected to generate over AUD 65 million annualised revenue.

Financial highlights

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

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

• Free cash flow fell 49% to AUD 11.1 million; operating cash conversion at 65.2%.

Outlook and guidance

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

• Full half 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.

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

• Digital audio operations targeted to reach cashflow break-even run-rate in Q4 2024.