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 Cody Outdoor's revitalization in Hong Kong and solid Australian operations.

• Australian operations delivered strong cash flow of AUD 27.5 million, while Cody Hong Kong revenue surged to AUD 47 million from AUD 15.8 million, reflecting new transit contracts.

• Digital audio revenue grew 28% year-over-year, 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 reductions, about 20% of the cash cost base.

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

Financial highlights

• Group EBITDA reached AUD 93.1 million; NPAT was AUD 14.3 million, reflecting investment in Cody contracts.

• 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: AUD 47 million (+AUD 31.2 million YoY); EBITDA: AUD 29.6 million; NPBT loss of AUD 13 million due to start-up and lease costs.

• Digital audio revenue: AUD 25.3 million (+28% YoY); digital audio EBITDA and cash flow positive in H2.

• Net debt: AUD 82.2 million, with AUD 64 million of undrawn facility limits; leverage ratio: 1.69x.

Outlook and guidance

• Low single-digit total revenue growth forecast for the full year, 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 is targeting to be cash flow positive in 2025 as new contracts mature.

• Australian operations aim for flat people and operating costs in 2025, despite investments in talent and digital growth.