• Total revenue down 7% YoY, digital audio revenue grew 21%
• Cost savings program on track, majority of $40M savings to be delivered by 2026
• Underlying EBITDA down 14%, but strong cash flow generation and net debt reduction

ARN Media Limited [ASX: A1N] has released its results for the half-year ending 30 June 2025, reporting continued progress on its transformation program, strong digital growth, disciplined cost management and improved cash flow. On a statutory basis, ARN Media's revenues from ordinary activities were $142.3 million, down 7% on 1HFY24, with strong 21% growth in Digital helping offset declines in Metro (-12%) and Regional (-5%). The company's transformation program is well underway, with a focus on simplifying the business, reducing costs, and building a leaner, more agile organisation. ARN has already actioned $35 million of the 3-year $40 million cost-out program, delivering significant savings through operational efficiencies. Underlying costs decreased 5% to $120.8 million, reflecting ARN's ongoing cost-out program while maintaining strategic investment in talent and content. Underlying EBITDA was $24.9 million compared with $28.8 million in the prior period (-14%). However, cash flow performance was exceptionally strong, with $11 million in positive cash generation, a $17 million year-on-year improvement. The group's balance sheet strengthened with net debt reduced by $10.9 million (12%) to $77.5 million. Cody Hong Kong contributed revenue of $24 million, up 157% year-on-year, and has been classified as an asset held for sale, with a sales process underway. The company has declared a fully franked interim dividend of 1.2 cents per share, representing 66% of NPAT before significant items.

• 2HFY25 revenues forecast to decline low to mid-single digits compared to same period last year
• Commercial team reset and 1HFY25 audience growth expected to support improved 2HFY25 commercial performance
• 2HFY25 digital audio revenue growth rates expected to improve on 1HFY25
• FY25 to deliver lower people and operating expenses compared to FY24
• Gross margins steadily improving driven by targeted cost optimisation
• Cost reduction program impact to accelerate in 2HFY25 and FY26
• Continued focus on working capital and capex discipline to support further net debt reduction and dividend payments