2025 Half Year Results Presentation

1. Group Operational & Financial Highlights

2. Financial Performance

3. ARN : Much More Than Radio

4. Trading Outlook

• Radio has remained resilient and ARN in-line or better than market

  • Metro:

    • Maintained a cumulative audience reach of 6.2m people each week

    • # 1 network in Sydney and Melbourne

    • Above market revenue performance

  • Regional:

    • Investment in Live & Local content delivering ratings success

    • Significant national revenue share growth

  • Digital:

    • Digital audiences accelerated across all format

Above market performance

2.8m addressable

registered users

Significant national share growth

#1 podcast publisher

• Live streaming of radio +9%

• 2.8m addressable registered users on iHeart platform

• #1 podcast publisher in the country

• Awarded two significant contracts in Cody (Hong Kong)

  • HK Tramways

  • KMB Bus

    Hong Kong Tramways Hong Kong KMB Bus

    Source: GfK S1-4 2024, SMBAP, AM/ FM/DAB+, Mon-Sun, 12am-12am, Cume, p10+, iHeart Radio Australia, Registration Data, Lifetime Users, as at June 2024, Triton Australian Podcast Ranker, Publisher Audience, monthly average Jan-Jun 2024

    
    
    

    Group Financial Highlights

• Group revenues up +4% on a pro forma basis, +1.3% on a reported basis

• 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 Tramways contract, commenced May 2024

• NPAT down -19% on a pro forma basis due to increased interest costs from acquiring SCA holding, increased lease interest from Hong Kong Tramways contract offset by reduction in tax expense

• NPAT attributable to ARN shareholders impacted by one-off significant items, largely cash transaction costs for proposed SCA acquisition.

• Fully franked dividend 1.2 cps - 70% of NPAT after significant cash

items

+ 4%

- 5%

1.58x leverage2

+ 10%

- 19%

HY23 - 3.5cps

1. Percentage change prepared on a pro forma basis, normalising the comparative period for Cody Outdoor contract not renewed.

2. Before significant items; NPAT attributable to ARN Media shareholders

Metro Market & ARN

H2-23 H1-24

0.00%

-1.00%

-2.00%

-3.00% -2.7% -2.5%

-4.00%

-3.61% -3.60%

Market ARN

ARN key achievements

Revenue Composition

Metro Radio

Regional Radio

Digital Audio

Other

H1-24

6.10%

1.20%

34.20%

58.60%

• Radio continues to show resilience and reach relative to other media

  sectors in challenging market

• Total ARN audio revenues continue to grow - up 1%.

• Better-than-market in metro

  Regional Market & ARN (SMI)

  H2-23

  20.0%

  15.0%

  10.0%

  5.0%

  0.0%

  -5.0%

  -10.0%

  H1-24

  15.3%

  8.6%

  1.6%

  -5.1%

  Market ARN

  
  
  

• Strong / above-market growth in regional

• Digital audio EBITDA and cashflow positive

  • Total audio strategy, growing broadcast and digital together

  • Low ongoing investment requirements

  • Highly efficient operating model

    
    
    

• Cost out program progressing to plan

  • $10m permanent annualized savings (~5.5% of addressable cost base, will be fully realised in CY25)

    Digital Audio Market & ARN

    H2-23 H1-24

    34.1%

    36.0%

    34.0%

    32.0%

    30.0%

    28.0%

    26.0%

    33.0%

    33.9%

    28.9%

    Market ARN

    
    
    

  • On track to deliver against previously stated opex growth of ~2-4%

    for the year

  • Commenced further program of work targeting additional $5-10m cost out over the next 2 years

• Investing in future growth

  • K&J launch

  • Accelerated strategy to further grow digital audio revenue in 2025