GTN (ASX:GTN) executives described the first half of FY26 as a difficult period, pointing to softer market conditions across key regions and a sharp decline in earnings. Speaking on the company’s earnings call, CEO Vic Lorusso said management responded by making “hard, necessary decisions to reset the business for the future,” including cost actions, affiliate renegotiations, and changes to how the company goes to market.
First-half results and impairment
Chief Financial Officer Ben Brooks reported first-half revenue of AUD 82.5 million and adjusted EBITDA of AUD 5.8 million. Brooks said those figures were down 15% and 53%, respectively, compared with the prior corresponding period, with the first quarter experiencing the most acute market pressure.
The company also recorded a non-cash impairment charge of AUD 41.5 million during the period, relating to its Australian and UK businesses. Brooks characterized the impairment as a “pragmatic reassessment of near-term forecasts” given macroeconomic conditions in those markets, and said the charge has “no bearing” on day-to-day liquidity.
Cash flow, balance sheet, and shareholder returns
Despite the earnings pressure, management highlighted stronger cash generation. Cash on hand rose to AUD 28.1 million at 31 December, up from AUD 21.1 million at 30 June. Brooks said the cash increase was supported by AUD 16.5 million in net operating cash flow, which he called a “significant improvement” from negative AUD 2.8 million in the prior corresponding period.
Brooks also pointed to shareholder returns during the half, noting the company returned AUD 43.9 million to shareholders via a return of capital paid in August 2025, equivalent to AUD 0.23 per share. Following that capital return, net debt stood at approximately AUD 7 million, which Brooks said management considers manageable and consistent with the company’s balance sheet position.
The board declared an interim dividend of AUD 0.01 per share, unfranked. Brooks said the dividend reflects confidence in the underlying business and added that the board remains committed to further shareholder returns as conditions allow.
Cost actions and affiliate renegotiations
Lorusso outlined three areas of focus, beginning with costs. He said the company has targeted annualized cost-out for FY27 of AUD 12 million to AUD 17 million and described progress as “real good.”
On affiliate arrangements, Lorusso said GTN has renegotiated significant agreements, with the “majority” of its AUD 7 million to AUD 9 million annualized target already executed and effective January 2026.
The CEO also said GTN has exited its aviation operations entirely. Management expects that move to deliver approximately AUD 3 million to AUD 5 million in annual savings from the second half onward. In addition, Lorusso said the sale of helicopters is expected to generate around AUD 5 million in cash proceeds in the current financial year, with most of that already received in early 2026.
Separately, Lorusso said the company is pursuing broader operating efficiencies through AI, comprehensive cost reviews, and improved sales systems, with an expected AUD 2 million to AUD 3 million in annualized savings to be realized progressively through the year.
Market repositioning and strategic priorities
Lorusso said management is changing how the company goes to market, with a greater emphasis on direct client relationships. He also said GTN is working to make better use of unsold inventory to improve margins and is engaging agency partners to reach new client pools. These initiatives are underway, with benefits expected to build through the second half of FY26.
He summarized the company’s strategic priorities as:
- Strengthening core affiliate partnerships
- Delivering a compelling proposition to advertising partners
- Actively managing costs through technology, including AI
Q&A highlights
In the question-and-answer portion of the call, a RaaS Research analyst asked whether there had been any change in affiliate relationship agreements following the Southern Cross merger with Channel 7. Lorusso said there had not been any change related to that merger, describing the Channel 7/SCA agreement as a long-term agreement.
Closing the call, Lorusso said the second half of FY26 is expected to show the benefits of actions taken in the first half, and he thanked shareholders and employees for their support during what he described as a period of change.
About GTN (ASX:GTN)
GTN Limited, together with its subsidiaries, operates broadcast media advertising platform that supply traffic information reports to radio stations in Australia, Canada, the United Kingdom, and Brazil. It offers information reports, such as traffic and news through advertising spots on television and radio networks directly to advertisers, as well as through advertising agencies. GTN Limited was founded in 1997 and is headquartered in North Sydney, Australia.
