ARN defends SCA purchase
ARN Media has reported a 40 per cent fall in net profit on the back of a drop in revenues, with the group blaming lower consumer spending, a slowing economy and a fall in government advertising after 2022 which included a federal election.
The result shows cost containment – costs were up two per cent – and a relatively healthy balance sheet. But revenue was off three per cent across the business. In early trading, ARN’s share price fell 2 per cent to 96 cents.
ARN said its audiences had grown across all audio platforms, highlighted by its success in recent metro AM/FM station surveys. ARN monthly podcast listening increased 23 per cent to 6.6 million people.
Digital audio revenue was a highlight with advertising up 37 per cent. The company licences the iHeartRadio platform for its podcasts and radio, and it said it had 2.5 million registered users.
Hamish McLennan, chairman of ARN Media
ARN chair Hamish McLennan described the result as good in a highly competitive market.
“The strength of audio is undeniable as both radio and podcast listening continues to grow,” he said. “We are strong believers in the future of the sector reflecting our decision in June to acquire a 14.8 per cent interest in Southern Cross Austereo for $38.3 million – a business we know well in a sector that is undervalued.”
That deal has been part of the reason for ARN’s share price slump in recent months. When the deal was done, ARN was trading close to $1.10 a share.
McLennan said third quarter radio revenues were pacing in line with prior comparative periods, after a strong July.
Chief executive officer Ciaran Davis said the group is seeing improved revenue conditions in this quarter after gaining market share in July. “We are confident our ‘All Audio’ strategy will deliver a strong and integrated audio business for listeners and clients.”
ARN Media CEO, Ciaran Davis
