ARN Media, the radio station company embroiled in a high-profile legal battle with former stars Kyle Sandilands and Jacqueline 'Jackie O' Henderson, has revealed a significant drop in advertising revenue tied to the controversial content of their show. Chief executive Michael Stephenson informed shareholders during the company's annual general meeting that the decline in advertising, which occurred while the Kyle and Jackie O Show was on air, contributed to a $26.4 million loss in revenue for the 2025/26 financial year.
Advertising Revenue Plummets
Stephenson reported that ARN's metro radio revenue fell by $28.3 million to $147.3 million in 2025/26. Of that decline, $22 million was directly linked to clients who chose not to advertise with ARN due to brand safety concerns. 'What has been obvious in recent times is that both consumer and advertiser expectations have changed,' he told shareholders on Thursday. 'Over the period, there were a number of advertisers who had concerns about the safety, or the brand safety, of some of our content, and as a result, it impacted our revenues through the period.'
Regional Advertising Also Affected
The issue also impacted regional advertising, which dropped by $5.3 million to $110.5 million. Of that decrease, $4.4 million came from national advertisers who pulled their spots due to brand safety concerns. ARN hopes that many of the advertisers who left will eventually return as clients, although Stephenson acknowledged the timeline remains uncertain. 'Some of which we may see in this financial year, and some potentially beyond,' he said.
The Kyle and Jackie O Show Controversy
The Kyle and Jackie O Show was known for its explicit content, which had drawn calls for a boycott from grassroots activist groups accusing it of normalising 'violent misogyny'. The show's controversial nature came to a head in February when an on-air blow-up between Sandilands and Henderson led to the termination of their contracts. During the incident, Sandilands told Henderson she was 'off with the fairies' and 'almost unworkable' due to her interest in astrology. The duo was being paid a combined $20 million per year under a 10-year contract set to expire in 2034.
Legal Battles Ensue
Following the on-air dispute, Henderson took a leave of absence and later informed the company she could no longer work with Sandilands. ARN considered this a repudiation of her contract, leading to its termination. The company also deemed Sandilands' conduct as 'serious misconduct' and terminated his contract two weeks later when he failed to remedy the situation. Both Henderson and Sandilands are now separately suing an ARN subsidiary for more than $160 million. Sandilands has argued that there was no serious misconduct and that ARN was using the incident to back out of a contract it regretted.
Impact on Ratings and Share Price
The pair had reigned as Sydney's top-rated morning drive program for many years, attracting an audience of over 600,000 listeners. However, their launch into Melbourne in 2024 did not achieve similar success. ARN's share price has struggled, dropping by half over the past 12 months. Despite this, chair Hamish McLennan expressed confidence in the company and announced he would invest $500,000 in buying company shares. McLennan, a former Network 10 chief executive, declined to comment further on the legal matters due to ongoing court proceedings.
