ARN Media slumps to $28m loss amid Kyle and Jackie O legal costs

Mounting legal costs and “safety concerns” associated with the now-axed Kyle and Jackie O Show have smashed ARN’s bottom line.

In its latest half-year update, KIIS, Gold Network and regional radio operator ARN announced a 14 per cent slump in revenue to $126.8m.

Net losses rose to $28.3m, largely due to impairment and legal costs, after the company swung the axe on the highly popular Kyle and Jackie O show in March.

ARN chief executive Michael Stephenson said even though the show was a hit with consumers, it struggled to attract sponsors.

“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 and our immediate priority is to regain metro radio revenue share,” he said.

Mr Stephenson also announced replacements for both their Sydney and Melbourne shows would start next year.

It was a tumultuous half of the year, when its top-rating Kyle and Jackie O show imploded in February following an on-air fight between its co-hosts Kyle Sandilands and Jackie ‘O’ Henderson, leading to the cancellation of their program.

Both Mr Sandilands and Ms Henderson launched legal action against ARN Media.

Mr Sandilands settled for $13.5m while Ms Henderson legal proceedings are ongoing.

It was also revealed ARN has not completely walked away from Mr Sandilands, taking a 19.9 per cent of net revenue from his new ventures for up to three years.

ARN media chairman Hamish McLennan said the company was taking steps in the right direction.

“While the first half result is not where we want ARN to be, the board is clear that the decisions being made now are the right decisions to change the trajectory of the company,” he said in the results statement.

“ARN exits the first half as a leaner, financially stronger and more focused organisation.”

Originally published as ARN Media slumps to $28m loss amid Kyle and Jackie O legal costs