ARN Media, the home of Kyle and Jackie O, Jonesy and Amanda and Christian O’Connell, has released its half-year results.
The company reported modest revenue growth and improved EBITDA. Total revenue for the half year was up marginally to $152.8% (+1%).
Regarding the progress of the Kyle and Jackie O show in Melbourne, ARN commented it was “in line with expectations”. Group costs were up 2% YOY, with the rise linked to the costs of launching K&J into Melbourne.
Digital radio revenues continued to flourish, with growth of 26% to $11.0m.
Critical lens on costs
In a release accompanying the results, ARN chief executive and managing director, Ciaran Davis, said,
“At ARN, we have an ongoing critical lens on costs particularly given difficult market conditions, and our cost out program is on track to limit total people and operating cost growth to between 2-4%, that will deliver $6.5 million permanent cost out in 2024. We have also commenced an additional efficiency review, targeting $5-10 million over two years.
“Our focus has been on operational performance as we navigate current economic conditions, and the investments we’ve historically made in long-term talent contracts, the long-standing partnership for iHeartRadio and nationalising core enabling operations, means we have been able to deliver our core product more efficiently.
ARN: Kyle and Jackie O will take time down south
“With Kyle and Jackie O recognised globally as one of the best breakfast shows in the world, we laun
Hamish McLennan
ched their program into the Melbourne market in the first half. We know it will take time to build a loyal audience, but brand tracking results are promising.
“Our investment in digital audio is buoyed by the ongoing growth in the industry at a time when other parts of the media sector are struggling. It is a dynamic, strong, and evolving landscape with radio reaching 81% of the population, Australian podcast listenership one of the highest globally, and streaming radio listening in cars has risen by 75% in two years.
“Looking ahead we are investing in new digital audio formats and technologies for commercialisation as we continue to build an integrated audio business. We believe there is potential for further efficiencies for the remainder of this year and into 2025 and are continuing to evaluate our operating model including exploring how the business can benefit from using Al.”
Why ARN wanted SCA
ARN Media chairman, Hamish McLennan, addressed the (so far) unsuccessful bid to acquire some of the SCA assets:
“ARN Media has delivered a competitive operational performance in 2024 despite the economic challenges faced by the Australian media sector. Critical to our performance were a number of key programs delivering increased and sustainable operating efficiencies, which are part of our $10 million annualised cost out program, ensuring we limit cost growth.
“These cuts reflect the tough environment facing Australian media. The industry needs market restructure and consolidation given the increasing pressures from global technology and media platforms and a government regulatory environment that has not kept pace. We have made no secret of the fact that we want to be part of industry consolidation and are very disappointed that our Indicative Proposal to acquire SCA was unsuccessful as it represented a compelling proposition for both ARN Media and SCA shareholders.”