Slide 1: HY24 Results
HY24 Results August 2024
Slide 2: Agenda
Agenda. 1 Group Operational & Financial Highlights 2 Financial Performance 3 ARN : Much More Than Radio 4 Trading Outlook
Slide 3: Group Operational Highlights
Group Operational Highlights • Radio has remained resilient and ARN in-line or better than market Metro Radio Regional Radio o Metro: ‒ Maintained a cumulative audience reach of 6.2m people each week Above market Significant national ‒ # 1 network in Sydney and Melbourne performance share growth ‒ A
Slide 4: Group Financial Highlights
Group Financial Highlights Revenue1 EBITDA1,2 • Group revenues up +4% on a pro forma basis, +1.3% on a reported basis $168.1M $35.5M + 4% + 10% • EBITDA up +10% on a proforma basis, flat on a reported basis • EBIT down -5% on a pro forma basis, impacted by lease depreciation on new Hong Kong Tramway
Slide 5: ARN key achievements
ARN key achievements 0.00% Metro Market & ARN H2-23 H1-24 -1.00% -2.00% • Radio continues to show resilience and reach relative to other media Revenue Composition -3.00% -2.7% -2.5% sectors in challenging market -4.00% -3.61% -3.60% • Total ARN audio revenues continue to grow – up 1%. Market ARN Met
Slide 6: ARN's ongoing Strength in core activities
ARN’s ongoing Strength in core activities Continues to Drive Mass Reach. Sydney Melbourne Brisbane, Adelaide & Perth • #1 network in Sydney • #1 network in Melbourne • KIIS97.3 in Brisbane – 161,000 was highest cumulative • 21.7% audience share • 19.7% audience share audience of the year • Weekly cu
Slide 7: Kyle & Jackie O Launched in Melbourne To Unlock Commercial Opportunity
Kyle & Jackie O Launched in Melbourne To Unlock Commercial Opportunity. • Overnight, the show went from reaching 851,000 people in Sydney to 1.2m across Australia’s two largest cities. KIIS1011 & KIIS1065 Commercial Share • Representing 62% of the metro commercial radio market, with potential to unl
Slide 8: Regional 'Live & Local' Strategy
Regional ‘Live & Local’ Strategy Delivering Acquisition Targets. Audience Growth Local Regional Revenue Growth ARN SMI Regional Share Growth • #1 in all survey markets* • National Regional share up +14% • Hyper local tactics leveraging 'Leaders in • Live & Local content strategy • Effective Regional
Slide 9: iHeartRadio; The most Comprehensive Digital Audio Platform in Australia
iHeartRadio; The most Comprehensive Digital Audio Platform in Australia. Low capex model delivered EBITDA and cashflow positive result in month of June 24 Forecasting EBITDA and cashflow positive for Q4 250+ distribution Digital Path to Profitability 2.8m registered users (+10%) 14 12 11.6 No. 1 pod
Slide 10: HY24 Financial Performance
HY24 | Financial Performance
Slide 11: Statutory Results
Statutory % Results. A$ million 2024 2023 % Change change Pro forma1 Revenue before finance income 168.1 165.9 1% 4% Strong audio result Other income 1.2 0.9 32% 32% • Pro forma removes earnings impact of exited contract for Cody Outdoor 1. Share of associate profits 2.2 2.3 (4%) (4%) • Revenue up $
Slide 12: ARN Metro, Regional, Digital
ARN Metro, Regional, Digital. A$ million 2024 2023 % Change Metro 89.0 90.2 (1%) Regional 52.8 52.2 1% National regional synergies prevail Digital 11.0 8.8 26% • Total advertising revenues increased 1%. Total revenue 152.8 151.2 1% o Metro revenues -1% on consistent market share. Revenue related cos
Slide 13: ARN Group - FY24 Cost Base
ARN Group - FY24 Cost Base. Cost out program progressing to plan • $10M permanent annualised savings identified. • Representing ~5.5% of addressable cost base. • Savings achieved in 2024 ~$6.5M, remainder in 2025. Reconfirming FY24 cost guidance • Reinstatement of opex base to facilitate medium term
Slide 14: 2 Foundational Contracts Secured in H1
2 Foundational Contracts Secured in H1. • Awarded two significant contracts in Hong Kong o HK Tramways Tram Body o KMB (Buses) Tram fleet 143 (the world’s largest fleet • Significant milestone for Cody and key pillars to of double deck trams) re-building market share and improving business valuation
Slide 15: Cody Outdoor - Hong Kong
Cody Outdoor - Hong Kong. Local Consistent revenue result currency Excl exited • Revenues were up 1% to $9.7M. contract1 A$ million 2024 2023 % change % change • EBITDA up +18% to $5.1M. Roadside 4.1 8.4 (51%) (9%) Transit 5.6 1.2 >100% >100% Early impact of new contracts Total revenue 9.7 9.6 1% 69
Slide 16: Group Cash Flow
Group Cash Flow. Cash generation lower due to corporate activity & HK contracts A$ million Jun 2024 Jun 2023 • Operating cash conversion 65.2%, impacted by: Net cash flow from operations 23.2 30.7 o Proposed SCA transaction advisor costs Principal lease payments (7.9) (5.6) o Working capital rebuild
Slide 17: Group Balance Sheet
Group Balance Sheet. A$ million Jun 2024 Dec 2023 Change Sound balance sheet Cash and cash equivalents 12.2 18.9 (6.6) • Net debt $86.8M and 1.58x1 leverage; impacted by necessary capex Receivables 71.7 72.5 (0.8) investment in Sydney studio upgrade / head office relocation, and one-off costs associ
Slide 18: Much More Than Radio
Much More Than Radio.
Slide 19: 9 in 10 Aussies Listen to Audio
9 in 10 Aussies Listen to Audio. Radio Audiences at an Mass Reach all-time high – 2016 - 2024 Metro Radio Regional Radio 12,000,000 12.2M people listening 7.6M listening each 10,000,000 each week in 2024 week in 2024 Remoe ARN 8,000,000 84% OF POP 10+ 78% OF POP 10+ 6,000,000 72% of metro people lis
Slide 20: Radio is Well Positioned For Future Growth
Radio is Well Positioned For Future Growth. Leveraging incremental listening & commercial adaptability Incidence of Listening Population Consumption 84% 78% $14.7B All Digital Including Video & Social 48% 27% 23% 2019 2024 Radio AM/FM/DAB+ Streamed Radio Radio DAB+ Streaming (non-radio) Radio Radio
Slide 21: Market Leading Technology Stack
Market Leading Technology Stack. Unlocking 7x more high value inventory via advanced targeting and data collaboration Owned Inventory Data Collaboration Suitability Integration Technology & AI Unlocking substantial volumes First party data collaboration Integrating conversational Efficient and profi
Slide 22: Compelling Commercial Propositions Which Makes ARN Highly Competitive
Compelling Commercial Propositions Which Makes ARN Highly Competitive. Mass Reach Increasingly Addressable Premium & Contextually Relevant Radio & Music Metro Radio Regional Radio 1 Streaming (Ad Supported) Podcast 6.1M people listening each 1.9M listening each week in ~2m people streaming 6.6m peop
Slide 23: H2 Priorities
H2 Priorities. • Achieving audience and revenue targets • Finalising the operational efficiency plan to deliver the $10m permanent cost out Core Business • Progressing further cost opportunities targeting additional $5-10m over 2 years • Kyle & Jackie O in Melbourne • Complete digital audio content/
Slide 24: Outlook
Outlook.
Slide 25: Trading Update
Trading Update. ARN • Q3 revenues forecasted to perform slightly above prior year with Digital growth offset by Radio results. • Revenues for the half are estimated to be ~2-3% ahead of prior year with Radio growth of ~1% and Digital ~25%. • People and operating costs remain in line with previous gu
Slide 26: ARN Media Limited / ABN 95 008 637 643
ARN Media Limited / ABN 95 008 637 643
Slide 27: Disclaimer
Disclaimer. This document has been prepared by ARN Media Limited (ARN Media) to provide general information about the activities of ARN Media and its subsidiaries at the time of release of this document. Unless specified otherwise, information in this document refers to the relevant financial period
Slide 28: Appendices
DIDGUUIO pendices. | A
Slide 29: Reconciliation of Segment Result to Statutory Result
Reconciliation of Segment Result to Statutory Result. Segment result Significant items Statutory result A$ million 2024 2023 2024 2023 2024 2023 Revenue before finance income 168.1 165.9 – – 168.1 165.9 Other income 1.2 0.9 – 39.1 1.2 40.0 Share of associate profits 2.2 2.3 – – 2.2 2.3 Costs (135.9)
Slide 30: Significant Items
Significant Items. Current year includes: A$ million 2024 2023 • Transaction costs $4.3m. Costs associated with proposed SCA acquisition (4.3) – • Implementation costs associated with new software applications. Software implementation costs (0.9) (1.1) • Expenses and depreciation related to exit fro
Slide 31: ARN Media Corporate
ARN Media Corporate. FY24 Corporate costs expectation remains A$ million 2024 2023 % change unchanged at ~$10m to $11m, subject to on- Salary and wages 1.9 1.9 2% target achievement of FY24 incentive targets. Incentives provided for 0.1 0.1 (2%) Board costs 0.5 0.5 (2%) Compliance and advisor costs
Slide 32: AASB 16 Leases - 2024
AASB 16 Leases - 2024. AASB 16 AASB 16 AASB 16 Result without Reported Leases Leases Leases A$ million adoption of 2024 Adjustment Adjustment Adjustment AASB 16 ARN HK Outdoor Investments ARN 33.9 (3.9) – – 30.0 Hong Kong 5.1 – (6.7) – (1.7) Investments 0.9 – – (0.2) 0.7 Corporate (4.4) – – – (4.4)
Slide 33: 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 35.1 (2.8) – – 32.3 Hong Kong 4.3 – (3.4)2 – 0.9 Investments 0.6 – – (0.2) 0.5 Corporate (4.5) – – – (4.5) U