Broadcaster ARN Media reported “resilient” advertising as it posted flat revenue and a drop in profit for the half year to June.
Operational revenue was up 1% to $168.1 million.
Net profit after tax was down 90% to $5.4 million, dragged down by costs associated with the bid for competitor SCA.
Total underlying costs, before significant items, were up 2% to $135.9 million, mainly due to increased investment in marketing to support the launch of The Kyle and Jackie O Show in Melbourne.
“Advertising revenues have remained resilient, supported by audience growth in digital streaming and podcasting and the continued realisation of national regional revenue synergies,” the company told the ASX.
ARN continues to be focused on keeping costs tight. Total people and operating cost growth is being kept to between 2% and 4%, delivering $6.5 million permanent cost out in 2024.
An new efficiency review is targeting $5 million to $10 million over two years.
The company described the half year result as a “competitive” operational performance despite challenging economic conditions.
The company says current September quarter revenue is forecasted to perform slightly above last year with digital growth offset by radio results.
“At ARN, we have an ongoing critical lens on costs particularly given difficult market conditions,” said CEO Ciaran Davis.
“Our focus has been on operational performance as we navigate current economic conditions, and the investments we’ve historically made in long term talent contracts, the long-standing partnership for iHeartRadio and nationalising core enabling operations, means we have been able to deliver our core product more efficiently.
“With Kyle and Jackie O recognised globally as one of the best breakfast shows in the world, we launched their program into the Melbourne market in the first half. We know it will take time to build a loyal audience, but brand tracking results are promising.
“Our investment in digital audio is buoyed by the ongoing growth in the industry at a time when other parts of the media sector are struggling. It is a dynamic, strong, and evolving landscape with radio reaching 81% of the population, Australian podcast listenership one of the highest globally, and streaming radio listening in cars has risen by 75% in two years.
“Looking ahead we are investing in new digital audio formats and technologies for commercialisation as we continue to build an integrated audio business.
“We believe there is potential for further efficiencies for the remainder of this year and into 2025 and are continuing to evaluate our operating model including exploring how the business can benefit from using AI.”
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