ARN Media has reported a sharp decline in revenue and earnings for FY25, as CEO Michael Stephenson publicly addressed the ongoing legal drama surrounding the end of The Kyle and Jackie O Show for the first time.
The broadcaster posted revenue of $285 million for the year, down 10% on FY24, alongside underlying EBITDA of $47.5 million, a 23% drop, and underlying EBIT of $32.5 million, down 32%. Underlying NPAT fell 32% to $17.9 million.
The results reflect a year of restructuring across the business, with the company pointing to cost reductions, asset divestments and a reset of its content and commercial strategy.
Operating expenses fell 4% year-on-year to $187 million, or down 12% excluding reinvestments, while net debt reduced 28% to $63.8 million. Free cash generation increased 6% to $40.2 million, with a reported conversion rate of 234%.
Digital was one of the few growth areas, with digital EBITDA increasing more than 100% to $3.6 million.
Stephenson said the year required “difficult but necessary decisions” as ARN repositioned its operations.
“FY25 was a year of transformation where we had to make difficult but necessary decisions. We have reshaped our business, protected cash, strengthened the balance sheet and improved the quality of future earnings.
“While the near-term financial outcome reflects this transition, ARN exits the year leaner, more focused and better positioned to deliver sustainable growth.”
He confirmed the company has suspended dividends as it continues to divest non-core assets and prioritise capital management.
“The Board has taken the strategic decision to suspend dividends while non-core assets are divested, ensuring capital is deployed prudently during this phase of transformation.”
Stephenson addresses KIIS breakfast shift
Stephenson also used the results to publicly acknowledge changes to KIIS breakfast programming, marking his first formal commentary on the transition away from the long-running Kyle and Jackie O era.
“KIIS breakfast I would like to acknowledge the recent changes to KIIS Breakfast programming. We recognise the success that The Kyle and Jackie O Show delivered over many years, and we thank the many talented people whose dedication, creativity and hard work contributed to its success.”
He said ARN is now focused on developing new programming that aligns with both audience expectations and commercial outcomes.
“Looking ahead, we are developing several new shows that will deliver content that resonates with our audiences and creates value for our commercial partners.”
Focus shifts to balance sheet and future growth
Stephenson said the company had made significant progress in a short period but acknowledged further work is required.
“I would like to thank our team for their commitment during a year of significant change, and our shareholders for their continued support as we reposition ARN for the future.
“We have achieved a great deal in a short period of time, but there is more to do. I am confident that while there is more work ahead, we have great brands, great products and most importantly, we have incredible people – the foundations are firmly in place.”