ARN Media reports a 7% revenue decline in H1 2025 amid a strategic transformation, with digital audio growth offsetting radio setbacks and key divestments underway.
- 7% decline in revenue from continuing operations to $142.3 million
- Digital audio revenue grows 21%, offsetting 9% radio revenue decline
- Transformation program achieves $35 million in cost savings toward $40 million target
- Cody Outdoor classified as asset held for sale; Emotive Pty Ltd sold
- Interim dividend declared at 1.2 cents per share, fully franked
ARN Media’s Financial Landscape in H1 2025
ARN Media Limited has unveiled its interim results for the half-year ended 30 June 2025, revealing a nuanced performance shaped by ongoing strategic shifts. The company reported revenue from continuing operations of $142.3 million, marking a 7% decline compared to the prior corresponding period. This downturn primarily reflects a 9% fall in traditional radio revenues, partially offset by a robust 21% surge in digital audio revenues, underscoring the growing importance of streaming and podcasting in ARN’s portfolio.
Despite the revenue contraction, ARN’s disciplined cost management has been a highlight. The company’s ambitious Transformation Program, launched in late 2024, aims to deliver $40 million in cost savings by 2027. Impressively, $35 million of these savings were realised in the first half of 2025 alone, driven by headcount reductions and operational simplifications. This focus on efficiency is complemented by increased investment in talent and content, positioning ARN for sustainable growth.
Strategic Divestments and Portfolio Streamlining
In line with its strategy to concentrate on core audio assets, ARN has classified its Hong Kong-based Cody Outdoor business as an asset held for sale, with completion expected in the second half of 2025. This move follows a full strategic review and aims to sharpen the company’s focus on high-value media segments. Additionally, ARN completed the sale of its investment in Emotive Pty Ltd in May 2025, with proceeds including contingent consideration, further simplifying the group’s structure.
Digital Growth and Audience Engagement
ARN’s digital audio segment continues to be a bright spot, with revenues reaching $13.4 million in H1 2025, a 21% increase year-on-year. The company’s digital footprint is expanding through its iHeartRadio platform, which now boasts over three million registrations, and its dominant position in the podcast market via the iHeart Podcast Network. This digital momentum is supported by enhanced data analytics capabilities and programmatic audio advertising growth, enabling ARN to offer advertisers more targeted and measurable campaigns.
On the broadcast front, ARN maintains strong market positions across metropolitan and regional radio. Notably, its Melbourne station GOLD 104.3 achieved the #1 overall station ranking for the first time since 1992, while Sydney’s KIIS network regained the #1 spot in the key 25–54 demographic. Regional stations continue to deliver live, local content, with several stations leading their markets in listenership.
Financial Position and Dividend Outlook
ARN’s balance sheet remains solid, with net assets of $272.2 million and a net debt reduction to $77.5 million, improving leverage ratios and maintaining compliance with banking covenants. The company declared a fully franked interim dividend of 1.2 cents per share, reflecting confidence in its cash flow generation despite the transitional challenges. Operating cash flow from continuing operations decreased by 25%, influenced by transformation-related payments, but free cash flow improved by 30%, supported by property sales.
Looking ahead, ARN is focused on executing its Total Audio strategy, leveraging digital innovation, content investment, and data-driven insights to capture evolving audience preferences and advertiser demand. The company’s transformation and divestment initiatives are designed to create a leaner, more agile organisation poised for long-term growth and shareholder value creation.
Bottom Line?
ARN Media’s transformation and digital pivot set the stage for a reshaped audio future, but execution risks and market shifts remain key watchpoints.
Questions in the middle?
- How will the sale of Cody Outdoor impact ARN’s financials and strategic focus in H2 2025?
- Can ARN sustain its digital audio growth to offset ongoing radio revenue declines?
- What are the potential risks and opportunities from ARN’s increased investment in data and programmatic advertising?