Arn Media Limited · ASX:A1N
Arn Media — FY2024 Earnings Presentation
36 slides from Arn Media's earnings presentation, Feb 27, 2025
Slide 1: FY24 Results
FY24 Results February 2025
Slide 2: Agenda
Agenda. 1 Key Highlights 2 FY Financial Performance 3 FY25 Priorities 4 Outlook 2
Slide 3: Key Highlights
Key Highlights. • Group revenue up +9% and EBITDA1 up +30% driven by revitalised Cody Outdoor in Hong Kong • Solid revenue and EBITDA1 performance in Australian operations delivering strong cashflow of $27.5m • Above market revenue growth on KIIS network in Sydney and Melbourne following launch of t
Slide 4: Financial Highlights
Financial Highlights. ARN Media Group FY24 FY23 Var Australia FY24 FY23 Var Hong Kong FY24 FY23 Var Revenue 365.6 334.3 31.4 Revenue 318.7 318.5 0.2 Revenue 47.0 15.8 31.2 EBITDA1 93.1 71.6 21.5 EBITDA1 63.5 65.0 (1.4) EBITDA 29.6 6.6 23.0 NPAT1 14.3 32.3 (18.0) NPAT1 27.3 31.4 (4.0) NPAT (13.0) 1.0
Slide 5: ARN performance
ARN performance. ARN connects brands with 10M+ engaged listeners weekly across broadcast, ARN streaming, and generated $28m podcasts of cash in 2024 5
Slide 6: KIIS Sydney & Melbourne Outperform in Metro market
KIIS Sydney & Melbourne Outperform in Metro market. ARN Metro Revenue • ARN metro revenue back -$5.1m (-3%) to $177.7m 184.0 • Market (-$1.8m) and GOLD network (-$3.8m) the 182.8 contributors 182.0 • Relaunch of WSFM to GOLD101.7 and investment in ( 1.8 ) marketing at GOLD 104.3 in Melbourne to posi
Slide 7: The Kyle & Jackie O Show: Australia's most listened to radio show
The Kyle & Jackie O Show Australia’s most listened to radio show. 1.7m listeners 2m+ each week Social Audience +12% (YOY) #1 Radio Catch Up #1 Streamed Live Podcast Radio Show 15.8m annual downloads +42% Double Weekly Audience of top TV shows such as Today, Sunrise & The Project Source: GfK S8-24 an
Slide 8: Strong performance in robust Regional market
Strong performance in robust Regional market. #2 #1 #1 • Live & Local content strategy leveraging 'Leaders in Local’ #1 position #1 #1 • #1 in 10 of the 12 markets surveyed in 2024* #1 • Total Regional revenue $104.9m; flat on 2024 #1 #1 • ARN’s national regional share 25.4% (+6%); +13% since ARN ac
Slide 9: Digital Audio continues strong growth trajectory
Digital Audio continues strong growth trajectory. Diversification of formats attracting new advertisers Radio 2019 Radio 2024 Podcast 2024 • Digital audio revenue $25.3m (+28%); Exceptionally strong growth Top 5 Adv Top 5 Adv Top 5 Adv in podcasting revenue Retail Retail #1 podcast network Retail •
Slide 10: Cody Outdoor
Cody Outdoor. Cody start up investment is complete, targeting to generate cash in 2025. 10
Slide 11: Cody Hong Kong Momentum building
Cody Hong Kong Momentum building. Cody By Quarter (A$ million) Rebuilt HK contract base Q1-24 Q2-24 Q3-24 Q4-24 25.0 • FY2024 saw ARN invest in HK, building value into the Cody business, identifying and securing two iconic contracts: 20.0 o Hong Kong Tramways (Trams) 15.0 o Kowloon Motor Bus (Buses)
Slide 12: Leading specialist in HK OOH well placed for future growth
Leading specialist in HK OOH well placed for future growth. • Leading OOH specialist pioneering high quality and innovative outdoor solutions across Hong Kong • 27-year track record of securing and maintaining a portfolio of OOH contracts • Long-standing collaborations with major advertising agency
Slide 13: FY24 Financial Performance
FY24 Financial Performance 13
Slide 14: Statutory results
Statutory results. A$ million 2024 2023 Var $ Var % Sound audio result with Revenue and EBITDA enhanced by Cody Revenue before finance income 365.6 334.3 31.4 9% • Revenue up +$31.4m (+9%): Other income 2.5 2.5 (0.1) (4%) o Benefitting from Cody HK Tramways and KMB Bus contracts Share of associate p
Slide 15: 2024 Result by Geography
2024 Result by Geography. 2024 2023 Var $ 2024 2023 Var $ 2024 2023 Var $ Stable result across AU operations A$ million AU Ops AU Ops AU Ops HK HK HK Group Group Group • AU operations EBITDA for ARN including Corporate Revenue before finance costs remained stable (+$0.1m) 365.6 334.3 31.4 318.7 318.
Slide 16: Metro, Regional, Digital and Corporate
Metro, Regional, Digital and Corporate. • Total advertising revenues up +$0.9m in challenging A$ million 2024 2024 2024 2023 2023 2023 Combined ARN Corporate Combined ARN Corporate market conditions Metro 177.7 177.7 – 182.8 182.8 – o Metro revenues back, impacted by market decline and YoY 25-54 rat
Slide 17: ARN Cost Base Astute Cost Management
ARN Cost Base Astute Cost Management. $3.5M $184.9M $6.5M $183.4M $2.0M $183.9M Cost out plan executed as intended $1.5M $39.6M $38.1M • Operating costs contained through $45.1M disciplined cost management • Key focus areas – people costs and discretionary costs • Marketing investment for KIIS Melbo
Slide 18: Cody Outdoor Hong Kong
Cody Outdoor Hong Kong. A$ million 2024 2023 Var $ • Revenues were up to $47.0m (+$31.2m YoY) Transit 40.5 2.5 38.0 • Transit up $38.0m due to new HK Tramways (launched in May) and Roadside 6.5 13.3 (6.8) KMB Bus (launched in July) contracts Total revenue 47.0 15.8 31.2 • Bus revenues performing abo
Slide 19: Group Cash Flow
Group Cash Flow. A$ million FY 2024 H1 2024 FY 2023 Group cash flow from operations net of lease payments and Net cash flow from operations 69.6 23.2 50.4 capex of $6.6m, impacted by: Principal lease payments (34.6) (7.9) (10.1) • H2 working capital rebuild limited to $10m on new HK contracts, bette
Slide 20: Cash Flow by Geography
Cash Flow by Geography. 2024 2023 Var $ 2024 2023 Var $ 2024 2023 Var $ A$ million Group Group Group AU Ops AU Ops AU Ops HK HK HK Net cash flow from operations 69.6 50.4 19.2 51.4 42.8 8.6 18.2 7.5 10.6 Overall debt increased by $7.1m due to: Principal lease payments (34.6) (10.1) (24.3) (3.9) (4.6
Slide 21: Group Balance Sheet
Group Balance Sheet. Material lease accounting on stable 2024 2023 Var $ 2024 2023 Var $ 2024 2023 Var $ A$ million Group Group Group AU Ops AU Ops AU Ops HK HK HK balance sheet Cash and deposits 18.8 18.9 (0.1) 14.5 13.7 0.8 4.2 5.2 (0.9) • HK leases along with North Sydney office lease driving mat
Slide 22: Strategic Priorities
aS Strategic 4 | Priorities. *
Slide 23: ARN's Audiosphere delivers 10m audio audience for advertisers
ARN’s Audiosphere delivers 10m audio audience for advertisers. 7.5 million • Total listening continues to grow Events & AM/FM Weekly Reach Experiences o Metro 12.3m (+1%) Audio Branding Broadcast o Regional 4.6m (+2.4m) o Streaming (4.8m) o Podcasting 11m (+12%) Dynamic 1 million DAB+ DAB+ Weekly Re
Slide 24: 3 Year Transformation Programme to deliver $40m cost out
3 Year Transformation Programme to deliver $40m cost out and drive new commercial growth opportunities. Digitised Audio Grow Audiences All Audio Business and Engagement Commercial Strategy Grow audiences and engagement in the key Position ARN as the leading ‘All Audio’ platform, Leveraging technolog
Slide 25: Grow audiences across KIIS and GOLD
Grow audiences across KIIS and GOLD. The KIIS and GOLD brands combined deliver a highly commercial network of 25-54 year olds at scale. • Grow Kyle & Jackie O in Melbourne • Repositioning GOLD brand 5 x years younger to maximise commercial appeal • Focus on the Kyle & Jackie O DNA that powers their
Slide 26: Outlook
Outlook.
Slide 27: Outlook
Outlook ARN • Stronger audience ratings and renewed commercial strategy to see total revenue growth build during the year with low single digit growth forecast for the full year • Digital Audio revenues will outpace 2024 growth levels with recently launched live streaming commercialisation to drive
Slide 28: ARN Media Limited / ABN 95 008 637 643
ARN Media Limited / ABN 95 008 637 643
Slide 29: Disclaimer
Disclaimer. This document has been prepared by ARN Media Limited (ARN Media) to provide general information about the activities of ARN Media and its subsidiaries at the time of release of this document. Unless specified otherwise, information in this document refers to the relevant financial period
Slide 30: Appendices
Appendices. amnedia
Slide 31: Reconciliation of Underlying Result to Statutory Result
Reconciliation of Underlying Result to Statutory Result. Underlying result Significant items Statutory result A$ million 2024 2023 2024 2023 2024 2023 Revenue before finance income 365.6 334.3 – – 365.6 334.3 Other income 2.5 2.5 – 39.4 2.5 41.9 Share of associate profits 4.8 5.1 – – 4.8 5.1 Costs (
Slide 32: H1 and H2 Performance
H1 and H2 Performance. H1 Revenue H1 EBITDA H2 Revenue H2 EBITDA A$ reported A$ reported A$ reported A$ reported A$ million 2024 2024 2024 2024 % change % change % change % change ARN 152.8 1% 33.9 (3%) 155.1 (0%) 37.5 1% Cody Outdoor – Hong Kong 9.7 1% 5.1 18% 37.3 >100% 24.5 >100% Investments 5.6
Slide 33: Significant Items
Significant Items. A$ million 2024 2023 Regulatory fees and costs associated with proposed SCA acquisition (4.5) (1.2) Restructuring, redundancies and termination costs (3.6) – Current year includes: • Transaction costs of $4.5m. Software implementation costs (2.0) (2.6) • Redundancies and restructu
Slide 34: ARN Media Corporate
ARN Media Corporate. FY24 Corporate costs expectation remains A$ million 2024 2023 % change unchanged at ~$10m to $11m, subject to on- Salary and wages 3.9 3.9 0% target achievement of FY24 incentive targets. Incentives provided for 0.5 0.6 (7%) Board costs 1.0 1.0 (1%) Compliance and advisor costs
Slide 35: AASB 16 Leases - 2024
AASB 16 Leases - 2024. AASB 16 AASB 16 AASB 16 Result without Reported Leases Leases Leases A$ million adoption of 2024 Adjustment Adjustment Adjustment AASB 16 ARN HK Outdoor Investments ARN 71.5 (7.3) – – 64.2 Hong Kong 29.6 – (36.8)2 – (7.2) Investments 1.0 – – (0.3) 0.7 Corporate (8.9) – – – (8.
Slide 36: AASB 16 Leases - 2023
AASB 16 Leases - 2023. AASB 16 AASB 16 AASB 16 Result without Reported Leases Leases Leases A$ million adoption of 2023 Adjustment Adjustment Adjustment AASB 16 ARN HK Outdoor Investments ARN 72.2 (6.2) – – 66.0 Hong Kong 6.6 – (5.6)2 – 1.0 Investments 2.5 – – (0.3) 2.2 Corporate (9.8) – – – (9.8) U