ARN Media Faces Revenue Headwinds and Leadership Shift Amid Market Pressures

Financial Performance and Market Challenges

ARN Media Limited faced a challenging 2025 financial year, with revenue from ordinary activities falling 10% to $285.2 million. The company reported a net loss after tax attributable to members of $34.7 million, a significant decline from the prior year. This loss was driven in part by restructuring costs as ARN undertook a major strategic reset to reposition itself in a rapidly evolving media landscape.

Despite the revenue decline, ARN demonstrated resilience through strong cash flow management, achieving a free cash flow of $40.2 million and reducing net debt by $24.6 million to $63.8 million. The company’s EBITDA before significant items dropped 27.4% to $45.7 million, reflecting softer advertising markets, particularly in metropolitan segments, and increased investment in talent and digital capabilities.

Strategic Reset and Digital Transformation

In October 2025, ARN unveiled a comprehensive strategic reset focused on transforming the business into a digitally driven entertainment company. This strategy pivots on four pillars: content development, broad distribution across multiple platforms, social amplification, and deep engagement with audiences and advertisers powered by data and technology.

The company streamlined its brand architecture, consolidating its KIIS and GOLD networks nationally to enhance operational efficiency and market presence. ARN also divested non-core assets, including the sale of Emotive Pty Ltd and the decision to sell Cody Outdoor, to sharpen its focus on core audio and digital platforms.

Digital audio revenue grew by 6.8%, with live radio streaming surging 76%, underscoring ARN’s successful expansion in digital markets. However, podcast revenue declined by 20%, reflecting a strategic portfolio optimisation to prioritise scalable, owned content with higher returns.

Leadership Changes and Governance

Leadership transitions marked the year, with CEO Ciaran Davis stepping down in October 2025 after 16 years at the helm. Michael Stephenson, previously Chief Operating Officer, was appointed CEO, bringing nearly three decades of media experience. The Board refreshed the executive leadership team to align with ARN’s new strategic direction, emphasizing digital innovation and operational agility.

The company also implemented a new remuneration framework linking executive incentives to both short-term financial metrics and long-term shareholder value creation, reinforcing accountability amid transformation.

Operational Highlights and Market Position

ARN’s KIIS and GOLD networks continued to deliver strong audience engagement, with KIIS Sydney’s Kyle & Jackie O show maintaining its #1 FM Breakfast position. The GOLD network expanded nationally, achieving #1 FM status in Melbourne and strong ratings in Sydney and Perth.

Regional operations remained robust, securing #1 positions in multiple markets through localized content and community connection. ARN’s digital platform, powered by its long-term licence with iHeart, reached over 3.1 million registered users, offering extensive music and podcast content.

Risks and Outlook

ARN faces ongoing risks from a fragmented advertising market, brand safety concerns, and industry consolidation pressures. The company is actively managing these through enhanced content compliance, digital innovation, and cost discipline.

Looking ahead, ARN’s FY26 priorities include rebuilding core revenue streams, accelerating digital audio growth, and delivering further cost savings. The company remains cautious on dividend declarations, with the dividend reinvestment plan suspended and no final dividend declared for 2025.