GTN Reports A$40.9M Loss as Ad Markets Tighten Across Four Territories
Global Traffic Network posts A$40.9M loss amid 14.7% revenue decline across Australia, UK, Canada, and Brazil. A$41.5M impairment charge signals rapid market contraction for out-of-home advertisers.
Global Traffic Network (GTN) reported a net loss of A$40.9 million for the first half of FY26, with revenue falling 14.7% to A$82.5 million, as advertising markets tightened simultaneously across its four operating territories: Australia, the UK, Canada, and Brazil.
Revenue Decline and A$41.5M Impairment Charge
The company's adjusted EBITDA collapsed 53% year-on-year to A$5.8 million. GTN recognized a non-cash impairment charge of A$41.5 million, including a complete write-down of all UK goodwill, intangibles, and property, plant, and equipment, alongside a partial impairment of Australian goodwill.
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GTN's Australian Traffic Network division, representing 47% of group revenue, generated A$38.4 million, down 12.7% from the prior period. Network operating costs and station payments totaled A$62.8 million against revenue of A$82.5 million, leaving the company with limited margin before SG&A expenses of A$17.6 million.
Chief Financial Officer Ben Brooks described the impairment as "a pragmatic reassessment of near-term forecasts given the macroeconomic environment," adding it has "no bearing on our day-to-day liquidity, capital management, and shareholder returns."
Aviation Exit and Cost Restructuring Targets
GTN announced the retirement and sale of its helicopter fleets in Australia and Canada, with proceeds of approximately A$5 million expected, most already received in early 2026. Chairman Peter Tonagh stated that "while aviation was once critical to affiliate recruitment, technological advances now make ground-based studio reports more valuable to clients."
The aviation exit is expected to deliver A$3 million to A$5 million in annual savings from the second half of FY26. GTN has set a broader target of A$12 million to A$17 million in annualized cost reductions for FY27, with A$2 million to A$3 million attributed to AI-driven efficiency initiatives.
The company carries A$35 million in total debt against a cash position of A$28.1 million, resulting in net debt of approximately A$7 million.
UK Write-Down Signals Rapid Impairment Risk
GTN's UK operations reported a sell-out ratio of 56% in FY25, down from 60% in FY24. Despite a 4% increase in average spot rates to US$131, the volume decline was sufficient to trigger a full asset write-down by H1 FY26.
The trajectory illustrates how gradual sell-out deterioration in affiliate-model media networks can accelerate into full impairment when macroeconomic conditions shift. In FY25, GTN's radio spot inventory reached 1.114 million spots, up 3% versus FY24, yet full-year revenue still declined, confirming that inventory growth without matching advertiser demand creates structural oversupply.
Recovery Plan Under New CEO
Newly appointed Global CEO Vic Lorusso, who spent 26 years at Australian Traffic Network before his December appointment, outlined three priorities: strengthening core affiliate partnerships, improving advertising propositions, and reducing costs through technology and AI.
Lorusso cited "strong board and shareholder alignment, experienced country leadership teams, and a clear execution plan" as the basis for confidence in the company's recovery direction.
GTN reaches 91 million weekly listeners across its four markets. The company's FY27 cost reduction targets and AI efficiency program represent the primary levers for returning to profitability, with revenue growth remaining dependent on a recovery in radio advertising demand across its operating markets.
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