GTN (GTN) H2 2024 earnings summary

Executive summary

• FY24 revenue grew 4% to AUD 184.2 million, with Adjusted EBITDA up 15% to AUD 22.3 million and NPAT up 115% to AUD 5.7 million, driven by strong performances in Brazil and the UK, effective cost management, and despite AUD 2.1 million in non-recurring executive transition costs.

• Non-Australian businesses contributed 53% of total revenue, with Brazil revenue up 42% and UK revenue up 20.5%.

• Net cash position of AUD 23.6 million as of June 30, 2024, with AUD 16 million in bank debt repaid during FY24 and all financial covenants removed from the debt facility.

• Declared a final dividend of AUD 0.017 per share, totaling AUD 0.028 for FY24, and continued share buyback initiatives, with over 4.7 million shares repurchased in FY24.

• Transitioned to a new executive team, reset cost base, and extended key affiliate agreements.

Financial highlights

• Revenue increased 4% year-over-year to AUD 184.2 million; Adjusted EBITDA rose 15% to AUD 22.3 million, and would have grown 26% excluding AUD 2.1 million in transition costs.

• NPAT surged 115% to AUD 5.7 million; adjusted NPAT up 42% to AUD 10.2 million; EPS reached 2.8 cents, all distributed as dividends.

• Net free cash flow before financing, tax, and dividends was AUD 26.6 million.

• Adjusted EBITDA margin improved to 12.1% for FY24.

• Group overhead costs reduced, with further annualized benefits expected in FY25.

Outlook and guidance

• July and August 2024 revenue pacing more than 10% ahead of the same period last year, with strong growth in Australia, Brazil, and the UK.

• Canada slightly behind prior year; management plans further cost efficiencies in FY25.

• All four markets well positioned with strong affiliate lineups and sales teams.

• Cost efficiency initiatives, including station compensation, are expected to positively impact future results.

• Unable to forecast future revenue due to short sales cycles; results beyond August 2024 depend on market conditions.