ARN Media reported a strong operational performance in 2023 despite reduced advertising spend and challenging market conditions.
ARN Media is progressing with a proposal to acquire SCA through a scheme of arrangement.
ARN maintained its position as the #1 metropolitan radio network in Australia, with a record cumulative audience of over 6.2 million people weekly.
Contracts for two top-rated Breakfast shows in Sydney and Melbourne were extended, with plans for the Kyle & Jackie O Show to broadcast in Melbourne in 2024.
Digital audio revenues increased by 36% year-on-year, with a narrowing EBITDA loss.
ARN remains the #1 Podcast publisher with 6.8 million listeners.
The regional network integration was completed on time and on budget.
A review identified $10 million in annualized cost savings over two years, with $6.5 million to be realized in 2024.
Cody Outdoor won a tender for HK Tramways, aiming to rebuild value in the Hong Kong outdoor market.
ARN Media reported a net debt of $75.1 million, with a leverage of 1.26 times EBITDA, targeting approximately 1.0 times EBITDA by December 2024.
A fully franked dividend of 3.6cps was declared, with a 75% dividend payout ratio.
Statutory results showed a loss due to non-cash impairment of ARN intangibles and a gain on the sale of the Soprano investment.
Revenue decreased to $334.3 million from $344.9 million the previous year, with a noted decline in advertising spend impacting segment revenues.
Underlying EBITDA decreased to $71.6 million from $91.8 million the previous year.
ARN acquired a 14.8% stake in SCA in June 2023, funded by the sale of ARN’s 25% interest in Soprano.
The company is focused on improving performance through operational model reviews and investments in regional networks and digital audio.
ARN Media is confident in the proposed acquisition of SCA, seeing it as a significant value creation opportunity.
This announcement is a summary of the company approved ASX announcement on 22/2/2024.