ARN has warned that it will be cutting $20 million in costs to free up cash by cutting between 30 - 50 staff from its team.
👉 Background: ARN Media is an Australian media company that was founded in 1988 under the name Here, There and Everywhere. It runs more than 58 radio stations in 33 different markets — including KIIS, Gold, CADA and iHeart in Australia.
👉 What happened: In 2024, its share price has fallen by more than 27% after its unsuccessful attempt to acquire Southern Cross Media - the owner of Triple M and Hit FM as well as a softer ad market. So now, ARN has warned that it will be cutting $20 million in costs to free up cash by cutting between 30 - 50 staff from its team.
👉 What else: ARN has struggled to grow its revenue at all over the past two years and its profit has been dipping. But arguably their biggest challenge right now is their commitment to pay Kyle and Jackie O $200 million over the next 10 years - which hasn't gone to plan so far.
💡While big-ticket investments can amplify success, they can also amplify challegnes. Celeb endorsements or contracts, like Kyle and Jackie O’s, can be huge for a brand's profile…but they also carry substantial risks.
💡For ARN, the $200 million contract was designed to roll their star performers out across all states in Australia — meaning they need less talent, audio staff, and everything else that comes with making a radio show.
💡But so far, it just hasn’t worked out as they had planned. In fact, their show’s audience is down 27% on last year. And they’re sitting in 8th position nationally for audience numbers.
Sign up for Flux and join 100,000 members of the Flux family
