ARN Media (A1N) H2 2024 earnings summary

Executive summary

• Group revenue increased 9% year-over-year to AUD 365.6 million, with EBITDA up 30% to AUD 93.1 million, driven by revitalized Cody Outdoor in Hong Kong and strong digital audio growth.

• Australian operations delivered stable revenue and strong cash flow of AUD 27.5 million in a challenging market.

• Digital audio revenue grew 28% year-over-year to AUD 25.3 million, with iHeartRadio users up 10% to 3 million and continued leadership in podcast publishing.

• A three-year transformation program (2025–27) aims to deliver AUD 40 million in cost savings, about 20% of the cash cost base, and accelerate digital audio growth.

• Fully franked final dividend of AUD 0.011 per share declared, totaling AUD 0.023 per share for the year, representing a 60% payout ratio.

Financial highlights

• Group EBITDA reached AUD 93.1 million (+30% YoY); NPAT before significant items was AUD 14.3 million, with statutory NPAT at AUD 3.9 million.

• Australian revenue stable at AUD 318.7 million; EBITDA AUD 63.5 million; free cash flow after lease, interest, and tax: AUD 27.5 million.

• Cody Hong Kong revenue surged to AUD 47 million (from AUD 15.8 million), EBITDA AUD 29.6 million; NPAT before significant items was a loss of AUD 13 million due to lease costs.

• Digital audio revenue reached AUD 25.3 million (+28% YoY), with EBITDA and cash flow positive in H2.

• Net debt stood at AUD 82.2 million, with leverage at 1.69x EBITDA and undrawn facility limits of AUD 64 million.

Outlook and guidance

• Low single-digit total revenue growth forecast for FY25, with digital audio revenues expected to outpace 2024 growth, driven by live streaming commercialisation.

• Transformation program targets AUD 40 million in cost savings over three years.

• Cody Outdoor (Hong Kong) targeting to be cash flow positive in 2025 as new contracts mature.

• Australian operations aim for flat people and operating costs in 2025, with continued strong cash generation.