ARN Media Limited [ASX: A1N] has reported a strong financial performance for the year ending 31 December 2024, with group revenue reaching $365.6 million, up 9% from the previous year. The company’s EBITDA before significant items surged by 30% to $93.1 million, fuelled by robust performance in its Australian operations and a revitalised business in Hong Kong.
Key financial highlights:
• Group revenue: $365.6 million (up 9%)
• EBITDA before significant items: $93.1 million (up 30%)
• Net profit after tax (NPAT) before significant items: $12.0 million
• Fully franked final dividend: 1.1 cents per share, bringing total dividends for the year to 2.3 cents per share
• Transformation program: Expected to deliver $40 million in cost savings over three years (2025-2027)
Australian operations: Strong cash generation & digital growth
ARN’s Australian operations delivered solid results, generating $27.5 million in free cash flow after lease payments, interest, and tax. Despite challenging market conditions, revenue increased by $0.9 million, with digital audio emerging as a key growth driver.
• KIIS network: Maintained its position as Australia’s #1 national radio network, with The Kyle & Jackie O Show expanding to Melbourne and reaching 1.2 million listeners across Sydney and Melbourne.
• Digital audio expansion: iHeartRadio retained its #1 position as Australia’s leading podcast publisher, with registered users growing by 10% to 2.9 million. Digital audio revenue increased by 28%, delivering positive EBITDA in the second half of 2024.
• Regional strategy success: The ‘Leaders in Local’ strategy strengthened ARN’s position in regional markets, with 10 out of 12 stations achieving #1 ratings.
ARN’s FY financial performance.
ARN Media CEO & managing director Ciaran Davis, said, “While the launch of The Kyle & Jackie O Show into Melbourne has generated significant attention, ARN remains focused on building audience loyalty and reinforcing its content leadership. The ongoing demand for digital and personalised audio experiences has positioned ARN as a leader in the evolving audio landscape.”
ARN chairman Hamish McLennan, added, “The enduring power of radio, combined with the increasing demand for digital and on-demand audio, presents significant opportunities for ARN. Our transformation program will position us as the most profitable audio business in Australia.”
Hong Kong Operations: Cody positions for future profitability
ARN’s Hong Kong outdoor advertising business, Cody, played a large role in the group’s revenue growth, contributing $47.0 million following the launch of two major contracts:
• Hong Kong Tramways advertising contract (May 2024) – providing large-scale visibility in the CBD.
• Kowloon Motor Bus advertising contract (July 2024) – covering nearly 4,000 buses across Hong Kong’s urban areas.
Despite upfront investment costs, Cody delivered cash-positive EBITDA in Q4 2024, with a target to be free cash-flow positive in 2025.
Looking ahead: Digital first & cost efficiencies
Looking ahead, ARN Media has set clear strategic priorities to drive future growth:
• Accelerated digital audio monetisation – The company is ramping up the commercialisation of live radio streaming and podcast assets, following the strong digital growth in 2024.
• Cost transformation program – Aims to deliver $40 million in savings over three years by leveraging AI, simplifying operations, and streamlining business processes.
• Stronger commercial performance – Revenue is expected to grow in the low single digits, with digital audio revenues projected to surpass 2024 growth levels.