ARN Media reported a 14% year-over-year decline in total revenue to AUD 127.9 million for the first half of fiscal 2026, as metro radio advertising fell 24% to AUD 60.0 million and regional radio slipped 5% to AUD 54.2 million. Digital revenue rose 1% to AUD 13.7 million, accounting for 11% of total revenue compared with 9% in the prior period.
EBITDA decreased by AUD 6.8 million to AUD 18.2 million, while operating expenses declined 13% to AUD 84.5 million. The company achieved AUD 11.8 million in cost savings during the half, bringing cumulative reductions since fiscal 2024 to AUD 42.5 million. Digital EBITDA surged 55% to AUD 2.1 million, supported by a 16% increase in live streaming revenue and a 70% jump in data-driven revenue.
Free cash flow strengthened to AUD 18.6 million, representing a 202% conversion from EBIT, while net debt fell by AUD 28.1 million to AUD 49.4 million. Cash balances increased 72% to AUD 17.6 million, and the company maintains AUD 73 million in undrawn debt capacity against a AUD 140 million total facility, with maturity extended to fiscal 2028.
ARN, Australia's second-largest commercial radio network with a 28% national share, faces a 6.4 percentage point gap between its 25% audience share in metro markets and 18.5% revenue capture. Management estimates each share point equates to AUD 6 million annually, representing a potential AUD 38.4 million opportunity. The company plans to launch new breakfast shows in Sydney and Melbourne in fiscal 2026 and introduce video advertising in September 2026 as part of its digital transformation strategy.
The shares closed at AUD 0.26, down 3.7% on the day, near the bottom of the 52-week range of AUD 0.16 to AUD 0.575. ARN reaffirmed its target of AUD 55 million in cumulative cost savings by fiscal 2027 and outlined a three-year roadmap focusing on stabilizing the core business, accelerating digital initiatives, and diversifying revenue streams under its "Now, New, Next" strategy.
