HT&E Limited, the owner of radio network ARN, has cut pays and reduced working hours to deal with a widespread fall in marketing and advertising activity during the COVID-19 crisis.
The company says it has $111 million in net cash and $250 million of undrawn debt facilities as at December 2019.
The board of directors, CEO and management team are taking a 20% pay cut and will forego incentive payments for 2020.
Staff are being asked to work reduced hours, use up excess annual leave and in some instances take short term pay-cuts. This is expected to generate cost savings of $1 million a month.
The company is also assessing the JobKeeper package benefits announced last week.
No redundancies are being announced but the company says this is being reviewed on an on-going basis.
CEO Ciaran Davis says the lean cost structure of the business combined with a strong balance sheet and no debt provides the company with the strongest possible footing to manage its way through the current situation.
“Listeners crave engagement, community and a sense of normality in this isolating environment and I know our radio talent are making lives slightly easier for many Australians," he says.
"In an uncertain market, advertisers are being reminded of radio and digital audio’s great strengths - immediacy, connection, trust and cost effectiveness with increasing targeting capability.
"We have an important community role to play and our investments in technology will ensure we remain broadcasting across the country."
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