ARN has pulled off a 9% revenue increase in group revenue, reaching $365.6 million, with EBITDA up 30% to $93.1 million, despite some tough economic conditions. CEO Ciaran Davis credits it to smart international expansion, digital innovation, and keeping a close eye on costs. In a chat with Mediaweek, Davis shared how ARN is staying ahead, what’s driving their transformation, and why digital audio is shaping up to be a big opportunity.
Hong Kong expansion
One of the biggest boosts to ARN’s revenue came from its Hong Kong operations, thanks to major contracts with the city’s tram network and KMB bus body advertising. These deals, secured in mid-2023, made a big impact.
Back home, things were a bit more of a mixed bag. “It’s been a stable result, with revenues pretty much flat,” Davis says. “Some areas did really well, our national share was strong, digital performed great, but metro was a bit behind, mainly due to audience shifts at Gold.”
To tackle this, ARN has rebranded WSFM as Gold in Sydney and is ramping up marketing for Gold 104.3 in Melbourne, supporting Christian O’Connell’s breakfast show. The goal? To make sure they’re hitting the all-important 25-54 age bracket that advertisers love.
$40 million in cost cuts and a digital-first future
ARN has big plans to cut $40 million in costs over the next three years while shifting towards a fully digitised audio business. While Davis didn’t go into specifics about where those cuts will land, he made it clear that this isn’t just about saving money, it’s about setting up for long-term success.
“In the past, when revenue was down, we’d trim discretionary spending like marketing,” he admits. “Now, we’re stepping back and looking at how we can fundamentally reshape the business.”
That means investing in three big areas: content creation, distribution, and monetisation. AI and smarter tech will also play a key role in making operations more efficient and data-driven. “AI helps us make better decisions, faster,” Davis explains. “We’re not just making small tweaks, we’re rethinking the whole process.”
ARN chairman Hamish McLennan echoed this sentiment, saying during the company’s investor call that the transformation would position ARN as “the most profitable audio business in Australia.”
Digital audio is booming
ARN’s digital audio revenue shot up 28% in 2024, with iHeartRadio now boasting 2.9 million registered users (up 10%). A key driver? ARN’s move to monetise live streaming inventory separately from traditional radio, something Davis believes will only accelerate digital revenue growth.
“The industry broke out live listening to digital formats in the GfK measurement last year,” he says. “Some competitors jumped on monetising that straight away, but we wanted to see how the market responded. Now, we’re rolling it out at scale, and I see that growth continuing.”
Podcasting has also been a standout performer, with strong sales helping drive overall digital revenue. In the second half of 2024, ARN’s digital audio segment turned a profit for the first time, with direct-sold digital products growing almost twice as fast as the wider market.
Kyle and Jackie O’s Melbourne expansion: A long-term play
ARN’s move to bring The Kyle and Jackie O Show to Melbourne in 2024 was a major move in their strategy. While some expected them to dominate overnight, Davis always knew it would take time.
“It was never going to be instant,” he says. “In Sydney, they’ve been number one for 25 years. In Melbourne, we need to build familiarity, introduce the characters, the content, and what makes them unique.”
So far, the KISS network has held strong, with Sydney delivering record revenue share and Melbourne holding steady. The focus now is on more localised activations, continued marketing, and audience engagement to build a loyal fanbase over time.
The future of audio: A big opportunity
Davis sees massive potential for audio in Australia, pointing out a clear gap between consumption and ad spend. “People spend around 21% of their daily media time with audio, yet it only gets about 8% of advertising dollars,” he said. “That’s a big opportunity.”
A major industry initiative is the rollout of Audio ID, which will help improve digital audience targeting and monetisation. “This is a game-changer,” Davis says. “It’ll help us and the industry make the most of our engaged audiences.”
“We’re not just building for today, we’re building for long-term, sustainable growth.”