ARN posts earnings lift, $40m cost cutting program
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The news: ARN Media has posted a 30% earnings lift for 2024 and flagged a transformation program aimed at stripping $40 million in costs out of the business over the next three years.
The numbers: ARN Media, the radio business home to the Kyle & Jackie O show, reported $365.6 million in full-year revenue from ordinary activities for the 2024 calendar year on Thursday, up 9% on the same period a year earlier.
The company reported a 4% step up in underlying group costs to $279.8 million, which the company said was driven by set up costs related to its “Cody” business in Hong Kong.
Earnings before interest, taxes, depreciation and amortisation was $93.1 million, before significant items, up 30% on the $71.6 million posted a year earlier. Net profit after tax attributable to ARN shareholders before significant items was $12 million.
The company declared a fully franked dividend of 1.1 cents per share. Total dividends were 2.3 cents per share for the year.
What they said: “The past year has been marked by macroeconomic pressures and shifting industry dynamics, yet ARN Media has demonstrated resilience, adaptability, and strength,” ARN Media chairman Hamish McLennan said in a statement.
“In the face of challenges in the advertising market, we have delivered sound financial performance in our core business while continuing to take a leading position in the evolving Australian audio landscape.
“Looking ahead, the enduring power of radio and the growing demand for personalised and immersive audio experiences continues to create new avenues for growth and ARN Media is well placed to capitalise on them.
“We have commenced a business transformation program that is expected to deliver cost out of $40 million over 3 years positioning ARN as the most profitable audio business in Australia. Our strategic priorities are clear — create a digitised audio business that leverages technology and AI to simplify the operating model and create efficiencies; to grow audiences by expanding reach and launching new innovative formats; and position ARN as the leading ‘All Audio’ commercial platform connecting brands with over 10 million listeners across broadcast, streaming and podcast assets.
“In Hong Kong, Cody Outdoor (Cody) secured two pivotal advertising concession contracts reestablishing its market presence as one of the leading outdoor operators in the region. The investment phase launching the contracts is now complete and the business is targeting to be free cash positive in 2025. With a balanced portfolio of quality assets, long standing partnerships with major advertising and blue-chip clients, Cody is strategically positioned for future growth and value-enhancing opportunities.”
The source: ASX announcement
