ARN Media (ASX:A1N) 1H FY26 Revenue Falls 14%, Net Loss Widens to $27.6 Million

Sonal Goyal

21 August 2026 11:15 AM AEST

ARN Media (ASX:A1N) 1H FY26 Revenue Falls 14%, Net Loss Widens to $27.6 Million

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Key Highlights

Total Revenue fell 14% to $127.9 million, down 10% normalised for 2025 one-off items
Underlying EBITDA from continuing operations fell 27% to $18.2 million
Net loss after tax widened to $27.6 million, including a $25.0 million non-cash Impairment charge
Net Debt reduced to $49.4 million; dividends suspended pending completion of asset divestments

ARN Media Limited (ASX:A1N) reported total revenue of $127.9 million for the half year ended 30 June 2026, down 14% on the prior period, or down 10% when normalised for one-off items in the 2025 comparative period. The company attributed the decline to a reduction in metro radio revenue share linked to Brand safety concerns associated with the KIIS breakfast program, along with the impact of the prior year's Federal Election on Advertising revenue.

EBITDA and Net Loss

Underlying EBITDA from continuing operations fell $6.8 million, or 27%, to $18.2 million, with revenue headwinds of $19 million partially offset by $11.8 million of cost savings. Total group operating costs decreased 13% to $84.5 million, within which the company reinvested $3.2 million into data and digital capabilities. The company reported a net loss after tax of $27.6 million, primarily reflecting significant items including a $25.0 million non-cash impairment charge on intangible Assets and $17.2 million in other charges, which included $11.6 million in settlement costs related to the Quasar Media matter, payable over three years.

Digital Growth and Cost Savings Program

Digital revenue reached $13.7 million during the half, with digital EBITDA up 55% to $2.1 million. The company delivered $11.8 million of cost savings during the half, taking cumulative savings since FY24 to $42.5 million, and remains on track to deliver $55 million in total cost savings by FY27.

Balance Sheet and Divestments

Free Cash Flow for the half was $18.6 million. Net debt was reduced to $49.4 million from $77.5 million in the prior corresponding period, with Leverage maintained at 1.5 times. During the period, ARN continued divesting non-core assets, including entering an agreement to sell Cody Hong Kong, subject to third-party consents, and completing a partial sale of its Investment in SCA.

Dividend Suspended

The Board decided to suspend dividends while the company completes its divestment of non-core assets and resolves outstanding litigation matters.

Outlook

ARN said the total audio advertising market is expected to be broadly flat in FY26, excluding prior-year election revenue, with low single-digit declines in the radio market offset by growth in digital. The company expects its metro revenue share to improve over the remainder of the year, with regional revenue share expected to remain stable and digital continuing to grow, alongside continued focus on delivering the $55 million cost-out target by FY27.

Conclusion

ARN Media's first-half FY26 result shows revenue and Earnings both declining amid pressure on its metro radio business, with a net loss driven largely by a non-cash impairment charge and litigation settlement costs. Alongside the earnings decline, the company reduced net debt, continued its cost-reduction program and progressed the divestment of non-core assets, while suspending dividends until those divestments and outstanding litigation matters are resolved, with management pointing to expected improvement in metro radio share and digital growth through the second half.

FAQs

Q: Why did ARN Media's revenue fall in 1H FY26?

A: Revenue fell 14% to $127.9 million, reflecting reduced metro radio revenue share linked to brand safety concerns around the KIIS breakfast program and the absence of prior-year Federal Election advertising revenue.

Q: What caused ARN Media's net loss in the period?

A: The $27.6 million net loss was driven mainly by a $25.0 million non-cash impairment charge on intangible assets and $17.2 million in other charges, including an $11.6 million Quasar Media settlement.

Q: Is ARN Media paying a dividend for 1H FY26?

A: No, the Board has suspended dividends while the company completes its divestment of non-core assets and resolves outstanding litigation matters.

Q: How is ARN Media's digital business performing?

A: Digital revenue reached $13.7 million in the half, with digital EBITDA up 55% to $2.1 million.

Q: What is ARN Media's cost savings target?

A: The company is targeting $55 million in cumulative cost savings by FY27, having delivered $42.5 million since FY24, including $11.8 million in the first half of FY26.

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