Executives at ARN Media encountered significant criticism from investors during the company’s annual general meeting held today. The meeting revealed that the cancellation of the Kyle and Jackie O show has resulted in a staggering $26 million loss in advertising revenue, attributed to concerns over “brand safety.”
The company is currently engaged in ongoing legal disputes regarding the termination of the $200 million contracts held by radio personalities Kyle Sandilands and Jackie Henderson. Henderson departed from the show earlier this year following a dispute with Sandilands, leading to the eventual cancellation of the program.
During the annual meeting, shareholders expressed their discontent, with a notable 90 percent voting against the executive pay report, putting chief executive Michael Stephenson’s $1.1 million annual salary under scrutiny. Should there be two consecutive votes against the pay report, it could potentially lead to a board spill.
ARN Media’s share price has dramatically decreased by approximately 52 percent over the past year, now standing at around 26 cents per share as of 2 PM AEST. In the 2025 financial year, the company reported revenues of $285 million, reflecting a 10 percent drop (equivalent to $32 million) compared to the previous year, resulting in a market capitalization of about $81 million.
In response to the shareholders’ concerns, chair Hamish McLennan refrained from commenting on the ongoing legal matters involving the former radio hosts. However, he did acknowledge that he had previously signed a letter of support for Sandilands and Henderson during their contract negotiations. Despite facing criticism regarding his leadership, McLennan was retained as chair after investors voted in his favor.
When questioned about his perceived leadership mistakes, McLennan described the inquiry as a “loaded question” but conceded that the board was dissatisfied with the company’s financial situation, especially in an environment where Australian media firms must compete against major international tech companies.
To demonstrate his commitment to the company’s future, McLennan announced plans to invest $500,000 of his own funds into ARN Media. When another investor inquired whether other board members would follow suit, one indicated they would consider it. Furthermore, an investor sought an apology from the board regarding the company’s recent performance, which was not granted.
