GTN Projects FY25 Revenue of $178M-$182M, EBITDA Down to $15.5M-$17.5M
GTN Limited has revised down its FY25 revenue and adjusted EBITDA guidance, citing one-off corporate expenses and strategic investments, while maintaining strong cash flow and capital management plans.
- FY25 revenue expected between $178M and $182M, down from $184.2M in FY24
- Adjusted EBITDA forecast lowered to $15.5M–$17.5M from $22.3M in FY24
- Includes $1.7M in one-off costs related to takeover and rebranding
- Plans $8M dividends, $8M debt repayment, and $5M share buy-back in FY25
- New $35M undrawn bank debt facility secured in March 2025
GTN Revises FY25 Financial Outlook
GTN Limited (ASX, GTN), a player in the media and telecommunications sector, has updated its earnings guidance for the fiscal year ending June 2025. The company now expects group revenue to fall between $178 million and $182 million, a modest decline from the $184.2 million recorded in FY24. More notably, adjusted EBITDA is forecast to drop significantly to a range of $15.5 million to $17.5 million, down from $22.3 million in the prior year.
Impact of One-Off Corporate Costs and Strategic Investments
The adjusted EBITDA guidance incorporates approximately $1.7 million in one-off corporate expenses. These costs stem primarily from a takeover completed at the end of calendar 2024 and a rebranding initiative for the company’s atn brand, which alone accounted for around $0.7 million. Additionally, GTN has invested roughly $1.7 million in affiliate costs across the group, positioning itself for future growth opportunities.
Strong Cash Position and Capital Management
Despite the downward revision in earnings, GTN projects a robust closing cash balance between $23 million and $25 million. This is after the company plans to distribute approximately $8 million in dividends, repay $8 million of debt, and execute a $5 million share buy-back during FY25. Notably, in March 2025, GTN secured a new $35 million bank debt facility, which remains undrawn, providing additional financial flexibility.
Looking Ahead
GTN has indicated that barring any significant changes, it does not intend to update its guidance before releasing its full FY25 results. The company’s cautious tone reflects the uncertainties inherent in foreign exchange rates, final revenue and expense figures, and the completion of the annual audit. Investors will be watching closely to see how the company balances these short-term headwinds with its longer-term growth ambitions.
Bottom Line?
GTN’s FY25 update signals a transitional year marked by strategic costs and disciplined capital management, setting the stage for future growth.
Questions in the middle?
- How will GTN’s affiliate investments translate into revenue growth in coming years?
- What impact will the takeover and rebranding have on operational efficiency and market positioning?
- When and how might GTN utilize its undrawn $35 million debt facility?
