GTN LIMITED — Interim / Quarterly Report 2025

Feb 23, 2025

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GTN Limited results for the half-year ended 31 December 2024

Overview:

• Revenue $96.7 million, +2% on 1H FY24

• NPAT $4.9 million, +11% on 1H FY24

• Adjusted EBITDA[1] $12.5 million, -7% on 1H FY24

• Investment of $1.7 million in ATN consisted of the committed purchase of premium station inventory, with a payoff expected in future periods

• Result included $0.75 million of costs related to the Viburnum off market takeover bid and $0.7 million for the extensive rebranding of the ATN business

• Strong liquidity position with net cash of $14.5 million, increased to $29.7m as of 17th Feb 2025

• Repaid an additional $7 million in bank debt during 1H FY25, reducing debt to $1 million

• Repurchased 4.0 million shares for $1.9 million

• Interim FY25 dividend of $0.0247 per share (unfranked)

Sydney, 24 February 2024 – GTN Limited (ASX: GTN) (Company or GTN), one of the largest broadcast media advertising platforms by audience reach in Australia, Brazil, Canada and the United Kingdom today announced its results for the half year ended 31 December 2024.

Overview of 1H FY25 results

(m)2 Revenue EBITDA4 Adjusted EBITDA1 NPAT NPATA3 NPATAper share	1H FY24 1H FY23 % Difference
	96.7 94.8 2.0%
	9.3 8.4 10.0%
	12.5 13.3 (6.5)%
	4.9 4.4 10.8%
	7.1 6.7 7.1%
	$0.036 $0.033 10.1%

1 Adjusted EBITDA is defined as EBITDA adding back the non-cash interest income related to the long-term prepaid affiliation agreement with Southern Cross Austereo which is treated as a financing transaction, transaction costs, foreign exchange gains/losses, gains on lease forgiveness and losses on refinancing.

2 Amounts in tables may not add due to rounding. Percentage change based on actual amounts prior to rounding.

3 NPATA is defined as net profit after tax adjusted for the tax effected amortisation arising from acquisition related intangible assets.

4 EBITDA is defined as net profit after tax (earnings) before the deduction of interest expense/income, income taxes, depreciation and amortisation.

Chairman Comments

GTN Chairman, Peter Tonagh, commented, “We are pleased to report that GTN delivered a strong first half performance, with NPAT increasing 11% to $4.9 million.

Non-Australian operations now contribute 55% of Group revenue, up from 54% in the prior corresponding period, reflecting our strong international presence.

While Adjusted EBITDA decreased 7% to $12.5 million, underlying performance showed 4% growth after excluding one-off costs of $1.45 million, comprising $0.75 million for the Viburnum off-market takeover bid and $0.70 million for ATN business rebranding.

Our financial position remains strong with net cash of $14.5 million as of 31 December 2024, with a meaningful unwind of working capital post balance date delivering Net Cash as of 17[th] February of $29.7 million. The company has announced an interim dividend of $0.0247 per share for 1H FY25 (unfranked), reflecting a 9.1% annualised dividend yield based on GTN's last closing share price.

Looking forward, our strategic focus is on growing operating earnings while optimising capital management. We continue to pursue opportunities to enhance existing business profitability through operational improvements.

Our capital strategy prioritises working capital efficiency and treasury optimisation, while evaluating various capital management options including dividends and share buybacks to deliver shareholder value.

Management Comment

Commenting on the results, Brent Henley, Chief Financial Officer of GTN, said “Group revenue increased 2% compared to 1H FY24 to $96.7million. This revenue performance was driven by strong growth in the UK. While revenue increased, Adjusted EBITDA decreased 7% to $12.5 million. This decline reflects costs associated with the Viburnum off-market takeover bid, extensive ATN rebranding and a strategic investment in premium inventory. NPAT improved 11% to $4.9 million while NPATA improved 7% to $7.1 million.

Australia, which remains our largest and most profitable market, maintained stable revenue compared to 1H FY24. Adjusted EBITDA was $9.8 million, down from $10.5 million in the prior period. This reflects our strategic decision to invest in premium inventory from key affiliates, positioning ATN for future growth, while maintaining focus on our core advertising base.

Canada revenue decreased 6.1% compared to 1H FY24 (2.9% in local currency) with Adjusted EBITDA declining to $1.8 million from $2.9 million in 1H FY24. Early performance indicators in 2H FY25 support our confidence in the market's potential to return to historical performance levels.

Brazil achieved local currency revenue growth of 10.6%, though a 17% devaluation of the Brazilian Real resulted in a 5.5% decrease in AUD terms. Adjusted EBITDA was $1.8 million compared to $2.1 million in 1H FY24. The market's strong underlying growth supports our optimistic outlook for the Brazil business.

United Kingdom revenue grew 13.7% (11.8% in local currency) with Adjusted EBITDA increasing 36% to $1.9 million when compared to 1H FY24. This performance was driven by a 21% increase in average

radio net impact rates and expanded market reach through higher available radio impacts. The UK continues to strengthen its position as a key contributor to Group performance.

The business is looking to effectively exit the Drone business in 2H FY25, with the final asset sale underway. As a result of scaling back Drone activity, the EBITDA loss of the Drones business was contained to $(0.17) million in 1H FY25.

As of 31 December 2024, our net cash balance was $14.5 million ($11.6 million after including lease liabilities recognised under AASB 16). This was driven by a working capital build of $11.8m in 1H FY25, due to delayed debtor collections in both Canada and the UK. Working capital has since unwound, with net cash (excluding leases) of $29.7 million as of 17[th] February 2025.

During 1H FY25, GTN returned capital to shareholders through a $1.9 million share buyback (4 million shares) and a $3.4 million final FY24 dividend. We also reduced our debt facility by a further $7 million. Over the past 4½ years, total debt facility repayments of $59 million have reduced the outstanding balance from $60 million to $1 million.

The combination of our strong affiliate networks, experienced local management teams, and robust balance sheet positions GTN well for continued profitable growth.

Trading update

GTN remains focused on our core advertiser base while implementing cost optimisation initiatives to enhance future performance.

January 2025 revenue tracked ahead of the prior corresponding period, though the short-term nature of our sales cycle limits revenue visibility for the remainder of FY25.

About GTN Limited

GTN Limited (ASX: GTN) began operations in Australia in 1997 and has grown to become the largest supplier of traffic information reports to radio stations in Australia, United Kingdom, Canada and Brazil (four of the 10 largest advertising markets in the world) and one of the largest broadcast media advertising platforms by audience reach in these operating geographies.

In exchange for providing traffic and information reports, and generally monetary compensation, GTN receives commercial advertising spots adjacent to traffic, news and information reports from its large network of affiliates. These spots are bundled together by GTN and sold to advertisers on a national, regional or specific market basis.

GTN's advertising spots are short in duration, adjacent to engaging information reports and are often read live on the air by well-known radio and television personalities during peak audience hours. GTN’s broad audience means it is able to deliver effective radio advertisements with high frequency and expansive reach, enabling advertisers to communicate with high-value demographics cost effectively.

For more information, visit the Company’s website at www.gtnetwork.com.au

Conference Call

GTN Limited will host a conference call at 1.00 p.m. Australian Eastern Daylight time on Tuesday, 25 February 2025 to discuss its 1H 2025 results.

The conference call will include a presentation and Q&A. To register to participate in the conference call, please click on the following link and follow the instructions: https://s1.c-conf.com/diamondpass/10044682-w5fgtr.html

Participants will then be provided with the dial in number, a passcode, and a unique access PIN. This information will also be emailed to participants as a calendar invite. To join the conference, participants should dial the number in the calendar invite and enter the passcode followed by the PIN provided when you registered, and you will join the conference instantly.

Conference Call Replay

The conference call will be archived following the call. It will be available to be heard at http://www.openbriefing.com/OB/5795.aspx

CONTACT:

Brent Henley Chief Financial Officer Ph: +61 2 9963 6760 brent.henley@globaltrafficnet.com

GTN Limited Level 42, Northpoint 100 Miller Street North Sydney, NSW 2060

This statement was approved by the Board of Directors of GTN Limited