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, is underway 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 new partnerships established.

• $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%.

Financial highlights

• Revenue was AUD 285 million, down 10% year-on-year, impacted by a softer advertising 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 by 6% to AUD 40 million, with operating cash flow conversion at 108% and free cash conversion at 234%.

• Net debt reduced to AUD 64 million, with leverage at 1.66x, improving to 1.5x pro forma after further asset sales; debt facility refinanced to FY28.

Outlook and guidance

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

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

• 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.