ARN Media posted a first-half loss for the 2026 financial year as revenue declined 14% year-over-year to AUD 128 million, though the company highlighted progress in digital growth and cost reductions. The broadcaster, which operates under the ARN and iHeart brands in Australia, reported EBITDA of AUD 18 million, down from AUD 25 million in the prior period.
Digital revenue increased 2% to AUD 14 million, representing 11% of total revenue, while streaming revenue rose 16%. Digital EBITDA grew 55% to AUD 2 million. CEO Michael Stephenson noted that 45% of the audience is now delivered via digital platforms, though this segment contributes a smaller share of revenue. The company plans to launch video advertising within video content in September 2026 and introduce new breakfast shows in Sydney and Melbourne during FY2026.
Total operating costs fell 13% to AUD 85 million, contributing to cumulative cost savings of AUD 43 million in the first half, with a target of AUD 55 million by the end of 2027. Free cash flow reached AUD 19 million, supported by AUD 10 million in asset sale proceeds, while the cash balance rose 72% to AUD 18 million. Net debt decreased by AUD 28 million to AUD 49 million, reducing net leverage to approximately 1.5 times EBITDA.
Revenue from metro radio declined 20%, while regional revenue fell 1% and local regional revenue grew 3%. ARN retains a 28% audience share in Australia, reaching 12 million people monthly, though metro revenue share stands at 18.5%, down more than six percentage points over two years. The company estimates that regaining one metro share point could add AUD 6 million in revenue, with 80% flowing to the bottom line.
ARN’s stock fell 3.7% to AUD 0.26 following the results, narrowing its 52-week range to between AUD 0.16 and AUD 0.575. The company reported a price-to-book ratio of 0.39, an 8.85% dividend yield, and a gross profit margin of 16.53%.
CFO Alexis Poole stated that ARN is now more resilient and financially stronger than 12 months ago, despite the revenue decline. The company’s total debt facilities amount to AUD 140 million, with AUD 73 million undrawn as of June 30.
