GTN (GTN) H1 2025 earnings summary

Executive summary

• Revenue grew 2% to AUD 96.7 million in 1H FY25, with international operations contributing 55% of total revenue and net profit after tax rising 11% to AUD 4.9 million.

• Adjusted EBITDA decreased 7% to AUD 12.5 million, impacted by AUD 1.45 million in one-off costs; excluding these, adjusted EBITDA would have grown by 4%.

• Net cash position was AUD 14.5 million at December 31, 2024, rising to AUD 29.7 million by mid-February 2025.

• Total shareholder return of AUD 12.3 million in 1H FY25 through dividends, share buybacks, and debt repayment.

• Transitioned to new majority shareholdings and board composition, with new non-executive directors appointed.

Financial highlights

• Revenue growth in the UK (+13.7%) and Brazil (+11% local currency) offset flat Australia and a 3% decline in Canada (local currency).

• Adjusted NPAT increased 7% to AUD 7.1 million, with EPS at AUD 0.025 for the half.

• Operating expenses increased 3.2% to AUD 88.1 million, mainly due to higher station compensation.

• Net tangible assets per share rose to AUD 0.53 from AUD 0.49 year-over-year.

• Net cash from operating activities was negative AUD 2.8 million, mainly due to a AUD 9 million increase in accounts receivable.

Outlook and guidance

• Interim dividend of AUD 2.47 cents per share declared, representing 100% of 1H FY25 NPAT and a 9.1% annualized yield.

• Strategic focus on growing operating earnings, optimizing capital management, and ongoing improvements in sales effectiveness and operational efficiency.

• Drones business exited, with final asset sales underway; future results highly dependent on market conditions.

• Unable to forecast future revenue due to short sales cycle lead times.

• Accounts receivable expected to remain elevated if revenue growth continues, impacting operating cash flow.