ARN Media Reports 68% Profit Collapse as Radio Revenue Falls 16%
ARN Media's net profit plummeted 68% to A$6.1M as metro radio revenue fell 16%—far worse than the 3.7% market decline. Digital growth can't offset traditional radio's structural challenges across A...
Australian radio company ARN Media reported a 68% collapse in net profit for FY2025, falling to US$3.9 million (A$6.1 million) from A$19.4 million the prior year, as revenue declined 10% to A$285.2 million.
Financial Results Reveal Disproportionate Profit Damage
The results, disclosed during an investor call on Wednesday, show that a modest revenue decline produced outsized bottom-line damage. EBITDA dropped 27% to A$45.7 million.
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Metro radio revenue fell 16.1% to A$147.3 million, significantly worse than the broader Australian metro radio market decline of 3.7%. Metro radio still represents 52% of total revenue.
Digital revenue grew 6.8% to A$27.4 million, driven by live streaming. However, digital accounts for less than 10% of total revenue, meaning growth in that segment could not offset the A$28.3 million metro radio decline.
CEO Michael Stephenson described 2025 as "a year of transition," stating the company's goal is to "create and distribute content across multiple platforms and monetise that content off the one cost base." ARN increased its cost-reduction target from A$40 million to A$55 million through 2027, having already delivered A$24.1 million in savings during 2025.
ARN also secured a 10-year extension with iHeart for its digital player and reduced net debt by A$24.6 million to A$63.8 million through asset sales, including divesting its 8.2% stake in SCA.
Parallel Declines Across Asia-Pacific Broadcast Markets
ARN's results reflect a pattern visible across the Asia-Pacific region. In China, radio advertising revenue fell 57% over six years, from 15.6 billion yuan in 2017 to 6.7 billion yuan in 2023, while listenership dropped from 683 million to 610 million between 2018 and 2024. More than 85 city-level or higher stations were taken off air between April 2024 and December 2025, with over 40 closures in 2025 alone.
Associate Professor Li Jiangang of Communication University of China describes the shift as a "structural shift driven by market logic, media consolidation, and platform-style management, evolving radio's core function into low-cost digital public connection rather than outright disappearance."
Across APAC, traditional TV revenues are forecast to decline by US$8 billion from 2024 to 2029, while online video revenues are projected to grow from US$64 billion to US$89 billion over the same period. Digital advertising now accounts for 70% of media budgets across APAC.
News Corp sold its entire 13% stake in ARN for A$18 million in 2025, implying a total company valuation of approximately A$139 million, less than 0.5x annual revenue. This valuation reflects how capital markets are currently pricing legacy broadcast assets.
Southeast Asia Offers a Contrasting Growth Picture
While legacy broadcast contracts in established markets, Southeast Asia's internet radio market was valued at US$196.73 million in 2025 and is projected to reach US$220.43 million in 2026, approximately 12% year-on-year growth, driven by smartphone use and affordable mobile data across Singapore, Malaysia, Thailand, and Vietnam.
Connected TV across APAC is expanding at 13% CAGR, projected to reach 360 million homes by 2030. ARN's stated strategy of extending audio assets into video formats using existing studio infrastructure is directly aligned with this expansion.
ARN forecasts flat revenue for 2026, with low single-digit radio declines offset by mid-to-high teens digital growth. The company's next financial update has not been scheduled.
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