ARN Media (A1N) H1 2026 earnings summary

Executive summary

• Revenue declined 14% year-over-year to between $126.8 million and $128 million, mainly due to brand safety issues, subdued advertising markets, and the absence of prior-year election revenue.

• Stabilized core business with a focus on regaining lost metro radio revenue share and accelerating digital transformation.

• Divested non-core assets, including Cody Hong Kong and partial sale of SCA shares, simplifying the portfolio and improving financial flexibility.

• Net loss after tax was $27.6 million to $28.3 million, driven by significant non-cash impairment and legal settlement costs.

• No interim dividend declared; dividend reinvestment plan remains suspended pending asset divestments and litigation resolution.

Financial highlights

• EBITDA before significant items was $18.2 million, down $6.8 million year-over-year; digital EBITDA rose 55% to $2.1 million.

• Free cash flow reached $18.6 million, with a conversion rate of 202%.

• Net debt reduced by $28.1 million to $49.4 million, with leverage at 1.5x EBITDA.

• Operating costs fell 13% to $84.5 million; $11.8 million in cost savings delivered in the half.

• Digital revenue now represents 11% of group revenue, up from 9% in the prior period.

Outlook and guidance

• Total audio advertising market expected to be flat in FY26, with low single-digit radio declines offset by mid-teens digital revenue growth.

• Metro revenue share expected to improve in 2HFY26, regional share stable, and digital revenue to continue growing.

• $55 million cumulative cost savings targeted by FY27.