ARN Media reported first-half fiscal 2026 revenue of $127.9 million, a 14% decline from the prior year, though underlying performance improved after adjusting for one-off election and contract revenues. EBITDA totaled $18.2 million, down $6.8 million year-over-year, while free cash flow reached $18.6 million, a 202% conversion rate. Operating costs fell 13% to $84.5 million, aided by $11.8 million in targeted reductions during the period.
Digital operations were the bright spot, with revenue rising 55% to $13.7 million, now accounting for 11% of total revenue compared with 9% a year earlier. EBITDA from digital grew to $2.1 million. The company highlighted a 70% surge in data-related revenue and a 16% increase in live streaming income, offsetting softer advertising demand. Metro radio revenue declined 20% to $60 million, while regional revenue dipped 1% on a normalized basis.
Net debt fell 44% to $49.4 million, with the net-debt-to-EBITDA ratio improving to 1.5x from 3x previously. Undrawn debt facilities stood at $73 million, and a $28.1 million deleveraging was achieved versus the first half of fiscal 2024. ARN extended its debt facility to December 2028 and reached a settlement with Kyle Sandilands totaling $12.1 million, payable over three years ending in 2029, in exchange for a 19.9% stake in his new venture’s net revenue for up to three years.
The company reiterated a target to deliver $55 million in cumulative cost savings by fiscal 2027, with $42.5 million already achieved in the first half. Talent savings contributed $5.3 million, while $3.2 million was invested in data, technology and digital capabilities. ARN also agreed to divest its Cody Hong Kong business to DFI Retail Group, removing $30 million in parent and bank guarantees.
Looking ahead, ARN projects the total audio advertising market to grow 1% annually through fiscal 2030, with digital audio revenue nearly doubling from $110 million to $197 million. Metro radio revenue is expected to decline from $624 million to $581 million over the same period, while the company plans to enter a $5 billion digital video market starting in September 2026.
