ARN Medi—the parent company of the ARN radio business—has announced revenue growth of nine per cent to $365.6 million, though its net profit after tax slipped from $32.3 million to $14.3 million.
The audio player said these results were driven by a solid revenue performance at ARN in a challenging market with revenues up $0.9 million, and a revitalised Hong Kong (‘Cody’) business launching two new contracts during the year, Hong Kong Tramways and KMB Bus Body, growing revenues to $47.0 million.
Total underlying group costs were $279.8 million, an increase of 4% compared to the prior year driven by set up costs related to Cody launching and delivering new contracts and marketing costs at ARN. It said “stringent” cost management at ARN delivered flat People and Operating costs ahead of the +2-4% previously guided.
“The past year has been marked by macroeconomic pressures and shifting industry dynamics, yet ARN Media has demonstrated resilience, adaptability, and strength. In the face of challenges in the advertising market, we have
delivered sound financial performance in our core business while continuing to take a leading position in the evolving Australian audio landscape,” said ARN Media chairman, Hamish McLennan.
“Looking ahead, the enduring power of radio and the growing demand for personalised and immersive audio experiences continues to create new avenues for growth and ARN Media is well placed to capitalise on them.
“We have commenced a business transformation program that is expected to deliver cost out of $40 million over 3 years positioning ARN as the most profitable audio business in Australia. Our strategic priorities are clear – create a digitised audio business that leverages technology and AI to simplify the operating model and create efficiencies; to grow audiences by expanding reach and launching new innovative formats; and position ARN as the leading ‘All Audio’ commercial platform connecting brands with over 10 million listeners across broadcast, streaming and podcast assets.”
ARN’s Media CEO and MD Ciaran Davis added:
“ARN delivered a solid result in 2024 highlighting its resilient model and strong cash generating operations.
“While the launch of The Kyle & Jackie O Show into Melbourne has been subject to much attention, overnight the breakfast show went from reaching 851,000 people in Sydney to 1.2 million people across Australia’s two largest cities, and across the country remains Australia’s most listened to radio show, reaching over 1.7 million listeners each week.
“In Sydney, ARN and The Kyle & Jackie O Show’s partnership has seen the show maintain its position as #1FM breakfast show for an incredible 48 surveys straight while also claiming #1 overall in Sydney. In Melbourne, the focus remains on building familiarity, audience loyalty and the reinforcement of the show’s DNA for bringing the biggest entertainment, celebrities and prizes on Australian radio.
“Regional audiences remain a strong and a growing segment of our business. ARN’s commitment to its Leaders in Local content strategy in regional markets delivering outstanding results across 12 markets, with 10 stations achieving #1 position with our sales strategy to deliver increased share of national regional advertising also seeing market share gains for the year.
“Digital audio continues to experience robust growth, and a key driver of ARN’s success is our exclusive Australian license for iHeartRadio, a low-capital investment that gives us access to cutting-edge technology while allowing us to focus on our core strengths – content creation, distribution, and monetisation. Our disciplined approach to investing in this growth category has delivered positive EBITDA and cash flow in the second half of 2024, positioning us to accelerate profitable revenue growth in 2025 and beyond.
“In 2025, we are accelerating the commercialisation of streaming live radio broadcasts in digital formats, confident in maintaining the digital audio growth we experienced last year. Digital is no longer an emerging category – it is a mainstream revenue driver.”
ARN predicted that Digital Audio revenues will outpace 2024 growth levels with recently launched live streaming commercialisation to drive accelerated growth rates.
