• 2024 audience challenges impacting commercial share in 1HFY25
• Audience share improvements in 1HFY25 to aid share recovery in 2HFY25
• Full commercial team restructure undertaken in 1H25; Building future sales capability

ARN Media Ltd presented its 2025 half-year results, outlining key highlights and strategic initiatives. The company faced audience challenges in 1HFY25 that impacted commercial share, but saw audience share improvements that are expected to aid share recovery in 2HFY25. ARN undertook a full commercial team restructure in 1H25 to build future sales capability. The company also experienced a slower market post the federal election in April. Despite these challenges, the Gold network outperformed the market and gained commercial share, while the KIIS network underperformed, prompting a refresh of its content and commercial strategy to drive share gain. Regional markets continued to deliver strong results, outperforming metro markets. ARN is executing a strategic reset, streamlining operations, investing in digital audio capability, and positioning the company for long-term growth and leadership in the Australian media market. The company is on track to deliver better than flat people and operating expenses for FY25, with a three-year cost-out program targeting over $40 million in savings, of which $35 million has already been actioned. ARN is also focused on growing audiences, with initiatives such as the national expansion of the Gold network, and continuing the growth of its podcast business, which has become a powerhouse in the Australian market.

ARN is forecasting a low to mid-single digit decline in 2HFY25 revenues compared to the same period last year. The company's commercial team reset and 1HFY25 audience growth are expected to support a trajectory for improving 2HFY25 commercial performance and some share regain. 2HFY25 digital audio revenue growth rates are expected to improve on 1HFY25. ARN is on track in FY25 to deliver lower people and operating expenses compared to FY24, with the impact of the cost reduction program expected to accelerate in 2HFY25 and FY26.

ARN is focused on executing its strategic reset, including further operational efficiency, the launch of new commercial digital products, and a revitalized KIIS content and commercial strategy. The company is also anticipating a significant iHeart product upgrade in October and the rollout of new data and ad tech. These initiatives, combined with the company's continued focus on working capital and capex investment discipline, are expected to support further reduction in net debt and continued dividend payment.