{"id":98728,"date":"2025-08-27T03:40:08","date_gmt":"2025-08-27T03:40:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/98728\/"},"modified":"2025-08-27T03:40:08","modified_gmt":"2025-08-27T03:40:08","slug":"arn-radio-revenue-dives-after-weak-kiis-performance","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/98728\/","title":{"rendered":"ARN radio revenue dives after weak KIIS performance"},"content":{"rendered":"<p>ARN\u2019s radio revenue has fallen during the first half of 2025, with low advertising demand for its KIIS stations pinpointed as the primary reason for a metro market plummet.<\/p>\n<p>For the first half of calendar-year 2025, ARN\u2019s metro radio revenue fell by close to $10 million year-on-year, from $85.24m to $75.26m, representing a 12% drop.<\/p>\n<p>Regional radio revenue dropped $2.9 million, from $56.6m to $53.7m \u2013 a modest 5%.<\/p>\n<p>Digital revenues saw a $2.4 million increase, from $11m to $13.4m, a 21% increase that couldn\u2019t offset the sluggish radio results.<\/p>\n<p>ADVERTISEMENT<\/p>\n<p>Overall, ARN\u2019s radio revenue dropped by 9% year-on-year. The division turned a $3.8 million profit before tax for the half, compared with $11.4 million for the first half of 2024.<\/p>\n<p>At ARN\u2019s earning call on Wednesday morning, Ciaran Davis noted the \u201c2024 audience challenges\u201d that carried into the first half of this year.<\/p>\n<p><a href=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/Screenshot-2025-04-29-113122-e1745890329586.png\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-872540\" class=\"size-full wp-image-872540\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/Screenshot-2025-04-29-113122-e1745890329586.png\" alt=\"\" width=\"470\" height=\"265\"  \/><\/a><\/p>\n<p id=\"caption-attachment-872540\" class=\"wp-caption-text\">Ciaran Davis<\/p>\n<p>\u201cGOLD is overperforming, however KIIS is underperforming,\u201d he said bluntly. KIIS is \u201cactively working on shifting its operating model \u2026 refreshing our content for commercial results\u201d.<\/p>\n<p>ARN and KIIS are currently bearing the load of the $200 million, 10-year contract with Kyle Sandilands and Jackie O Henderson. The second-half of 2025 will see a content reset across the entire station, Davis promised.<\/p>\n<p>Whether this will involve toning down what former chief content officer Duncan Campbell has referred to numerous times as the \u201cgraphic sexual content\u201d of the show remains to be seen. <a href=\"https:\/\/mumbrella.com.au\/he-agreed-to-do-that-he-wants-to-win-in-melbourne-kiis-boss-says-kyle-sandilands-will-cut-the-smut-in-2025-856555\" rel=\"nofollow noopener\" target=\"_blank\">Late last year, Campbell told Mumbrella<\/a> Sandilands had agreed to tone down the content in 2025 in a bid to increase his show\u2019s standing in the competitive Melbourne breakfast radio market \u2014 where they are ranked eighth in terms of listenership.<\/p>\n<p>However throughout 2025, <a href=\"https:\/\/mumbrella.com.au\/kyle-sandilands-returns-to-radio-after-on-air-dummy-spit-880145\" rel=\"nofollow noopener\" target=\"_blank\">Sandilands has constantly rallied against censorship<\/a>, last month declaring on air \u201cACMA can shove it in their arses, and so can the management of the radio station.\u201d The Australian Communications and Media Authority (ACMA) chair Nerida O\u2019Loughlin has previously confirmed the show received 59 complaints between July and November, 2024.<\/p>\n<p>In late June, Sandilands participated in IMAA\u2019s Sound Byte event at ARN\u2019s North Sydney headquarters, <a href=\"https:\/\/mumbrella.com.au\/dont-be-fooled-by-imbeciles-kyle-sandilands-still-believes-in-melbourne-879462\" rel=\"nofollow noopener\" target=\"_blank\">where he implored<\/a> \u201cagency people\u201d to ignore the noise and just go where the audiences are.<\/p>\n<p>\u201cYour job is to make sure your client achieves the great success with their campaigns, regardless of where they\u2019re advertising \u2026 come to where the people are. We\u2019ve got the listeners. They\u2019re the people that are buying, you know, fridges, freezers, cars, holidays. That\u2019s who listens to us.\u201d<\/p>\n<p><a href=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-27-085854.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-886730\" class=\"size-full wp-image-886730\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-27-085854.png\" alt=\"\" width=\"470\" height=\"263\"  \/><\/a><\/p>\n<p id=\"caption-attachment-886730\" class=\"wp-caption-text\">Should investors read into the fact Kyle and Jackie O\u2019s photo was the smallest on the presentation title page shown during ARN\u2019s results call?<\/p>\n<p>ARN Media\u2019s total revenue from continued operations fell by 7%, from $152.8 million to $142.3 million, which Davis credits to the \u201csofter ad market\u201d, while also noting an advertising spike in April due to the federal election. Continued operations exclude Cody, ARN\u2019s Hong Kong-based out-of-home business, which it is <a href=\"https:\/\/mumbrella.com.au\/arn-looks-to-shed-outdoor-business-and-simplify-873552\" rel=\"nofollow noopener\" target=\"_blank\">actively looking to offload<\/a>, and creative agency Emotive, <a href=\"https:\/\/mumbrella.com.au\/arn-sells-emotive-as-it-streamlines-business-880057\" rel=\"nofollow noopener\" target=\"_blank\">which it sold its majority stake in last month.<\/a><\/p>\n<p>The company reported a bare profit of $800k, down from $7.8m last year (NPAT, profits after tax).<\/p>\n<p>Underlying EBITDA, which CFO Alexis Poole said the company considers the primarily measure of its performance, sat at $24.9 million for the half, down from $28.8 million \u2013 a 14% year-on-year drop.<\/p>\n<p>In good news, ARN has cut its debt from $88.4 million to $77.5 million \u2014 a 17.2% cut \u2014 while the company has \u201cactioned\u201d $35m <a href=\"https:\/\/mumbrella.com.au\/arn-announces-40m-in-cutbacks-amid-market-concerns-over-sandilands-865909\" rel=\"nofollow noopener\" target=\"_blank\">of the $40 million cost-out program<\/a> it initiated at the start of 2025, with the majority of these savings to be seen by the end of 2026.<\/p>\n<p>To this end, 240 jobs will have been cut by the end of the year, with 97% of these to be made by the end of this week.<\/p>\n<p>Underlying costs decreased by 5%, to $120.8 million, while the company is focused on \u201csimplifying its operating model, divesting non-core assets, resetting teams, acquiring top-tier talent, strengthening its brands, and advancing its data and digital capabilities.\u201d<\/p>\n<p>The second half of 2025 will see a revenue percentage drop in the \u201clow-to-mid single digits\u201d.<\/p>\n<p>Davis stressed to shareholders that 2025 should be considered \u201ca year of reset\u201d.<\/p>\n<p>\u201cThe clear message to take away is we are making clear progress\u201d, Davis said. \u201cStrong and deliberate progress\u201d.<\/p>\n<p>Whether or not the shareholders bought the reset message is unclear: there were no questions asked during the Q+A portion of the investor call.<\/p>\n<p>Davis ended the call by pointing to the company\u2019s 2026 upfront in October.<\/p>\n<p>\n\t\t\t<img decoding=\"async\" src=\"https:\/\/mumbrella.com.au\/wp-content\/themes\/mumbrella\/images\/mail-white-big.svg\"\/><br \/>\n\t\t\tKeep up to date with the latest in media and marketing\n\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"ARN\u2019s radio revenue has fallen during the first half of 2025, with low advertising demand for its KIIS&hellip;\n","protected":false},"author":2,"featured_media":98729,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[33024,64,63,72252,134,72253,72254,72255,53493,136],"class_list":{"0":"post-98728","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-music","8":"tag-arn","9":"tag-au","10":"tag-australia","11":"tag-ciaran-davis","12":"tag-entertainment","13":"tag-jackie-o-henderson","14":"tag-kiis","15":"tag-kyle-and-jackie-o","16":"tag-kyle-sandilands","17":"tag-music"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/98728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=98728"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/98728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/98729"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=98728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=98728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=98728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}