ARN Media (A1N) H2 2025 earnings summary

Executive summary

• FY25 marked a significant transformation with a reset cost base, organizational redesign, and a shift toward a digital-first entertainment strategy, including a new executive leadership team.

• Divestment of non-core assets, including Cody Hong Kong and Motive, was initiated to focus on core Australian entertainment operations.

• Strategic investments were made in digital capability, data, and content, with iHeart positioned at the center of the digital strategy and a new 10-year partnership.

• Transformation program delivered $24 million in cost savings in FY25, with $55 million targeted by FY27.

• Free cash flow rose 6% to $40 million, with free cash conversion at 234% and net debt reduced by 28% to $64 million.

Financial highlights

• Total revenue was $285 million, down 10% year-over-year due to a softer advertising market and Metro radio headwinds.

• Underlying EBITDA was $47.5 million, down 23% year-over-year, but ahead of prior guidance.

• Net profit after tax was $16 million, down 41% year-over-year.

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

• Digital revenue grew 7% to $27.4 million, with digital EBITDA up 482%.

Outlook and guidance

• Total audio advertising market expected to be flat in FY26, with low single-digit declines in radio offset by mid-to-high teens digital revenue growth.

• Metro revenue share is expected to improve, regional share to remain stable, and digital revenues to grow strongly.

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

• Continued divestment of non-core assets and acceleration of digital transformation.