• Australian advertising market experiencing significant softness in H2 FY 2025
• ARN's revenue expected to decline by low double digits in H2 FY 2025
• $40m cost out program underway, with $35m already actioned
• Full year EBITDA expected to be 25%-27% below prior year

ARN Media Limited (ASX: A1N) has provided a trading update for the year ended 31 December 2025 (FY 2025). The company states that the Australian advertising market has experienced significant softness in the second half of FY 2025, as broader economic uncertainty and cautious client sentiment weigh on advertising spend across the industry. These market headwinds are impacting ARN's revenue performance, with October YTD Revenue declining by ~10% and revenue for the second half of FY 2025 expected to decline by low double digits compared to the prior year. To offset the rising cost of business, ARN's transformation program has identified over $40m of cost out initiatives to be delivered over 3 years, of which $35M has already been actioned. This cost reduction program is expected to improve the cost profile for H2 2025 by ~8% compared to the prior year. Consequently, ARN expects full year EBITDA to be approximately 25%-27% below the prior year. ARN has shifted its strategy to better align with evolving market dynamics and is encouraged by the progress of its turnaround strategy, which is delivering operational improvements and positioning the business for long-term sustainable growth.

ARN expects full year EBITDA to be approximately 25%-27% below the prior year.

ARN has shifted its strategy to better align with evolving market dynamics and is encouraged by the progress of its turnaround strategy, which is delivering operational improvements and positioning the business for long-term sustainable growth.