GTN Limited reported a 14.7% revenue decline to $82.5 million and a significant net loss of $40.9 million for the half-year ended December 2025, driven by a $41.5 million impairment charge. The company also announced a $43.9 million return of capital and a strategic exit from aviation operations in Australia and Canada.
- Revenue down 14.7% to $82.5 million
- Net loss of $40.9 million due to $41.5 million impairment
- Return of capital of $43.9 million funded partly by $35 million debt
- Strategic exit from aviation in Australia and Canada
- Interim dividend declared at $0.01 per share, unfranked
Revenue Decline and Market Pressures
GTN Limited, a key player in the radio advertising sector across Australia, the UK, Canada, and Brazil, has reported a 14.7% drop in revenue to $82.5 million for the half-year ended 31 December 2025. This decline reflects a tightening in the global radio advertising market, particularly in Australia, the UK, and Canada, with only Brazil showing modest growth of 3%. Australia remains the largest contributor, accounting for 47% of revenue.
Significant Impairment and Financial Impact
The company recorded a substantial net loss of $40.9 million, primarily driven by a $41.5 million impairment charge. This impairment relates to goodwill and other assets in Australia and the UK, reflecting updated forecasts and challenging macroeconomic conditions. The impairment includes a partial write-down of goodwill in Australia and a full impairment of goodwill, intangibles, and property, plant, and equipment in the UK.
Capital Return and Dividend Policy
In a notable move, GTN returned $43.9 million to shareholders through a return of capital approved in July 2025. This was partly funded by drawing down the full $35 million debt facility with the Commonwealth Bank of Australia. The return of capital reduces shareholders' cost base but is not treated as a dividend for tax purposes. The company declared an interim dividend of $0.01 per share, unfranked, with a target to distribute approximately 100% of net profit after tax for the full fiscal year.
Strategic Exit from Aviation
GTN has made a strategic decision to exit its aviation operations in Australia and Canada, reclassifying related helicopter assets as held for sale. This move aims to reduce operating costs significantly, as advances in technology have diminished the value proposition of aviation in delivering TV reports. The sale of these assets is expected in the third quarter of fiscal 2026.
Outlook and Market Position
Despite the current headwinds, GTN maintains a strong cash position of $28.1 million and manageable net debt of $10.2 million. Management remains confident that the adverse market conditions are temporary and is focusing on growth through strategic content advertising deals with global affiliates. The company’s adjusted EBITDA remains positive, though down from the prior year, reflecting ongoing operational challenges.
Bottom Line?
GTN’s half-year results underscore significant challenges ahead, but strategic moves like the aviation exit and capital return set the stage for a potential turnaround.
Questions in the middle?
- How quickly can GTN recover from the impairment-driven losses amid a tough advertising market?
- What impact will the aviation exit have on GTN’s operational efficiency and future earnings?
- Will the company’s dividend policy remain sustainable if market conditions do not improve?