ARN Media (A1N) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was $142 million, down 7% year-over-year, with digital audio revenue up 21%.

• Transformation program underway, with $35 million in annualized cost savings actioned and a target of $40 million by 2027.

• Leadership team strengthened with new COO and CFO, enhancing digital and commercial capabilities.

• Strategic divestment of non-core assets, including Cody Outdoor in Hong Kong and Emotive Pty Limited.

• Net profit after tax from continuing operations was $0.8 million, down $7.0 million from the prior year.

Financial highlights

• Operating expenditure down 5% to $121 million, reflecting disciplined cost management.

• Underlying EBITDA was $24.9 million, down 14% year-over-year.

• Digital audio revenue grew 21% to $15.4 million, with live streaming revenue nearly doubling.

• Cash generation strong at $20 million, up 30%, with free cash conversion at 215%.

• Net debt reduced to $77.5 million, including an $8 million repayment and $67 million in unused facilities.

• Fully franked interim dividend of 1.2 cents per share declared.

Outlook and guidance

• H2 2025 revenues forecasted to decline low to mid-single digits year-over-year.

• Digital audio revenue growth rates expected to improve in H2 2025.

• Continued reduction in people and operating expenses, with gross margins improving.

• Cost reduction program impact to accelerate in H2 2025 and FY 2026.

• Ongoing focus on working capital, CapEx discipline, and further net debt reduction.