The commercial fallout from The Kyle and Jackie O Show brand safety crisis was laid bare at ARN Media’s AGM, with the broadcaster revealing that advertiser concerns linked to the show contributed to $26.4 million in lost metro and regional revenue during FY25.
It is an extraordinary admission, given the company were paying Kyle Sandilands and Jackie ‘O’ Henderson a combined $20 million each year.
The company is now embroiled in a legal battle against the pair, after the termination of both Sandilands’ and Henderson’s contracts, and the subsequent end of the network’s The Kyle and Jackie O Show.
However, despite the ongoing noise surrounding the saga, Stephenson told the meeting that “we expect a significant percentage of the $26m of revenue that was lost last year because of brand safety concerns to return, improving both our metro radio revenue and revenue share.”
ARN CEO Michael Stephenson addresses shareholders at today’s AGM.
The votes
Chairman Hamish McLennan was re-elected during the meeting, but not without facing a series of brutal questions from investor David Kingston, who took umbrage with McLennan’s description of ARN Media’s “enduring success”.
“Chair, we both speak the English language, and I’ve got a lot of respect for you, Chair, but if you can look everyone in the face and say that ARN is an enduring success when shareholder value has been decimated, I would be shocked.”
McLennan, however, held firm, replying: “I don’t want to get into semantics. We know that the industry is under incredible pressure. And so, we think there’s a pathway forward.”
A vote was also held on ARN Media’s remuneration proposal, which included the $1.1 million annual salary of Stephenson.
Results of that vote will be published to the ASX later today.
According to The Australian Financial Review, proxy adviser CGI Glass Lewis has urged shareholders to vote against the proposal, citing concerns over Stephenson’s pay package.
In its report, Glass Lewis said Stephenson’s $1.1 million salary, excluding incentives, was “materially above the median” of $812,075 for companies within the S&P/ASX250-300 cohort.
ARN shares
The vote was held against the backdrop of reports in The Australian Financial Review that the broadcaster had reclaimed millions of shares from both Sandilands and Henderson.
The pair had each been extended a $3 million loan to purchase ARN shares as part of their 10-year, $200 million contract.
That contract was due to expire in 2034.
According to the publication, under the arrangement, Sandilands and Henderson each acquired 3.2 million ARN shares, giving them stakes worth more than 1% of the company at the time.
The shares were intended to be held for the duration of the contract.
The meeting wrapped up with a clearly tested-looking McLennan before those watching online were taken back to an ARN Media-branded holding page, with the tune Celebration by Kool & the Gang playing in the background.