ARN Media shares sink on lower second-half revenue guidance
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More news: Shares in ARN Media fell in afternoon trade after the audio-focused media company said revenue is forecast to post a “low to mid-single digit decline” in the second half of 2025 compared to the previous corresponding period.
At 12:26pm AEST, shares in ARN Media had slipped 7.8% to 47 cents per share.
E&P Financial Group executive director media and telco, research Entcho Raykovski said he had forecast revenue growth of 4% for ARN in the second half of 2025. Raykovski said he expects the soft outlook “will weigh on the stock”.
The company’s half-on-half digital revenue growth forecast of 21% is also lower than E&P’s expected 29%.
However, Raykovski flagged that total ARN people and operating costs are expected to fall year on year in FY25, where “prior guidance was for flat costs”.
ARN Media swings to first-half loss
The news: ARN Media has swung to a $11.9 million net loss after delivering $5.4 million in profit in the previous corresponding period as the audio-focused entertainment company faced a 7% decline in revenue and advanced its cost savings program.
The numbers: ARN Media posted a statutory revenue decline of 7% from $152.8 million in the first half of 2024 to $142.3 million in the first half of 2025. This was also behind the $181.2 million market consensus estimate, according to Visible Alpha figures.
ARN also said it actioned $35 million of the $40 million cost out program announced at the start of the year, with most savings to be delivered by the end of 2026.
A fully franked interim dividend of 1.2 cents per share was declared, in line with the previous year. It was also better than the 0.3 cents that was expected.
The context: ARN Media expects EBITDA in the second half of 2025 to "substantially benefit from the cost out program". Revenue fell as revenue in metropolitan radio and regional radio declined by 12% and 5% respectively, although this was partially offset by 21% growth in digital.
What they said: "The company advanced its long-term growth strategy through targeted investment, disciplined cost out management and a reshaping of commercial operations to drive future growth," ARN Media chair Hamish McLennan said.
ARN Media CEO Ciaran Davis said the company's leadership and digital capability were strengthened during the period following the appointments of a new COO and CFO alongside a restructure of the commercial team.
The sources: ASX, E&P research
