ARN Media (A1N) H2 2025 earnings summary

Executive summary

• FY25 marked a significant transformation, with a reset cost base, leaner structure, and a shift toward digital and diversified revenue streams, supported by a new executive leadership team and business reorganization.

• Strategic focus included disciplined cost and capital management, divestment of non-core assets, and investment in digital capability, data, and partnerships.

• $24m in cost savings delivered, OPEX reduced by 12% excluding reinvestment, and net debt reduced by $25m.

• Digital revenue grew 7% year-over-year, with digital EBITDA up 482%.

• The company is transitioning from a traditional radio business to a broader entertainment company, leveraging audio, video, social, and live experiences.

Financial highlights

• Revenue was AUD 285 million, down 10% year-on-year, impacted by a softer ad market and Metro radio headwinds.

• Underlying EBITDA was AUD 47.5 million, down 23% year-on-year, but digital EBITDA rose to $3.6m (+482%).

• Net profit after tax was AUD 16 million, down 41% year-on-year.

• Free cash flow increased 6% to AUD 40 million, with operating cash flow conversion at 108% and free cash conversion at 234%.

• Net debt reduced by 28% to AUD 64 million; debt facility refinanced to FY28.

Outlook and guidance

• The total audio market is expected to be flat in FY26, with digital revenue growth offsetting low single-digit declines in radio.

• Metro radio share is expected to improve, regional share to remain flat, and digital revenues to grow in the mid-high teens.

• Ongoing focus on cost control, with AUD 55 million in cost out targeted by end of FY27.

• Continued focus on divesting non-core assets and accelerating digital transformation.