ARN Media has announced a net loss of $28.3 million for the first half of 2026, a significant financial downturn accompanied by a 14 percent drop in revenue compared to the same period last year. The company reported revenue of $126.8 million for the period.
This financial result follows the termination of contracts for prominent radio personalities Kyle Sandilands and Jackie 'O' Henderson in February after an on-air incident. Their previous contract with ARN was reportedly valued at $200 million over 10 years. ARN has cited ongoing brand safety concerns as a factor contributing to pressure on its metro radio business, previously stating the fallout from the incident led to a $26 million revenue shortfall.
Despite the revenue challenges, ARN has focused on cost reduction, with operating expenses decreasing by $11.8 million to $84.5 million. The company is targeting an additional $55 million in cost savings by the end of the 2027 financial year. ARN has also worked to strengthen its financial standing, reporting a net debt of $49.4 million, a decrease of $28.1 million from the previous year, and has extended its debt facility through to 2028.
ARN has reached a settlement with Sandilands, resolving legal disputes over his terminated contract. The agreement includes ARN securing a 19.9 percent share of net revenue from Sandilands' new ventures for up to three years and removes $30 million in guarantees from ARN's balance sheet. Additionally, the company plans to sell its Cody Hong Kong business as part of its streamlining efforts.
Michael Stephenson, ARN's chief executive, stated that the company is focused on rebuilding its metro radio business. "While first half revenue was impacted by residual brand safety issues in KIIS Breakfast and the Federal Election in the prior year, ARN's underlying audience position remains strong," Stephenson said in the results statement. "Our immediate priority is to regain metro radio revenue share."
ARN chairman Hamish McLennan described the company as now being "leaner, financially stronger and more focused." Since their departure from ARN, Sandilands has launched a new subscriber-only digital program, "Kyle Sandilands Live," which has experienced some technical issues in its initial broadcasts. Jackie 'O' Henderson is reportedly still pursuing legal action against ARN regarding her dismissal.