• Revenue: Increased by 2% to $96.7 million in the first half of FY25.
• Net Profit After Tax (NPAT): Increased by 11% to $4.9 million.
• Adjusted EBITDA: Decreased by 7% to $12.5 million, impacted by $1.45 million in non-recurring costs.
• Net Cash: $14.5 million before lease liabilities of $2.9 million, rising to $29.7 million as of February 17.
• Dividend: Interim dividend of $0.0247 per share, representing 100% of first-half FY25 NPAT.
• Australia Revenue: Minor growth, adjusted EBITDA of $9.8 million, down from $10.5 million in FY24.
• UK Revenue: Grew by 14%, adjusted EBITDA of $1.9 million.
• Brazil Revenue: Grew 11% in local currency, declined 6% in AUD due to currency devaluation.
• Canada Revenue: Declined 3% in local currency, contributing $1.8 million to adjusted EBITDA.
• Shareholder Return: Total of $12.3 million, including dividends, share buybacks, and debt repayment.
• Debt Repayment: Reduced to $1 million as of December 31, 2024.

• Warning! GuruFocus has detected 3 Warning Signs with ASX:GTN.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gtn Ltd (ASX:GTN) reported a 2% growth in revenues and an 11% increase in net profit after tax to $4.9 million for the first half of fiscal year 2025.
• The company finished the period with a strong net cash position of $29.7 million as of February 17, 2025, after resolving delayed debtor collections.
• Australia remains the most profitable market for Gtn Ltd (ASX:GTN), showing minor revenue growth despite a challenging advertising environment.
• The UK market saw a significant revenue increase of 14%, contributing positively to the company's overall performance.
• Gtn Ltd (ASX:GTN) declared an interim dividend of $0.0247 per share, representing 100% of first-half FY25 net profit after tax, aligning with their dividend policy.

Negative Points

• Adjusted EBITDA decreased by 7% to $12.5 million, impacted by $1.45 million in costs related to an off-market takeover bid and rebranding efforts.
• Brazil's revenue declined by 6% in Australian dollars due to a 17% devaluation of the Brazilian real, despite local currency growth.
• Canada experienced a 3% revenue decline in local currency, reflecting challenges in the radio market.
• The company's adjusted EBITDA was negatively affected by non-recurring costs, which, if excluded, would have shown a 4% growth.
• Currency movements negatively impacted revenue from Brazil and Canada, affecting overall financial performance.

Q & A Highlights

Q: Are there any plans for further capital management initiatives beyond increasing the dividend payout ratio to 100%? A: Yes, we are currently engaged with our advisers to explore various capital management options and aim to progress these initiatives in the second half of FY25. - Peter Tonagh, Non-Executive Independent Chairman of the Board

Q: Can you provide more details on the financial performance and strategic focus for the upcoming period? A: We are focused on growing operating earnings while optimizing capital management. Our strategy includes improving sales effectiveness, operational efficiency, and exploring expansion opportunities. We prioritize working capital efficiency and treasury optimization, evaluating options like dividends and share buybacks to enhance shareholder value. - Peter Tonagh, Non-Executive Independent Chairman of the Board

Q: How did the international operations perform in the first half of FY25? A: International operations now represent 55% of GTN's revenue. The UK saw a 14% revenue increase, while Brazil grew 11% in local currency but declined 6% in Australian dollars due to currency devaluation. Canada faced a 3% revenue decline in local currency. - Brent Henley, Global Chief Financial Officer

Q: What impact did currency movements have on GTN's financial results? A: Currency movements had mixed effects; the UK benefited from favorable movements, while Brazil and Canada were negatively impacted. In local currency terms, the UK revenue increased by 11.8%, Brazil by 11%, and Canada decreased by 2.9%. - Brent Henley, Global Chief Financial Officer

Q: What are the key highlights of GTN's operational performance across different markets? A: In Australia, ATN has redefined its market position with a new brand strategy. In Brazil, BTN expanded its client base and market reach. CTN in Canada maintained strong market share despite challenges, and GTN UK positioned itself as the largest independent radio network. - Victor Lorusso, CEO of Australian Traffic Network

For the complete transcript of the earnings call, please refer to the full earnings call transcript.