Bad news for ARN as revenue plunges and company suffers $28 million loss after Kyle Sandilands and Jackie 'O' Henderson blow-up

ARN Media has been dealt another financial blow following the collapse of The Kyle and Jackie O show, with the radio giant revealing a dramatic slump in revenue and a $28.3 million net loss.

The company reported revenue of $126.8 million for the first half of 2026 - down 14 per cent on the same period last year.

The results come months after ARN sensationally terminated the contracts of its two biggest radio stars following an explosive on-air incident in February.

The pair had been locked into a $200 million, 10-year deal with ARN, but the partnership collapsed after the February 20 broadcast and subsequent fallout.

ARN has blamed ongoing brand safety concerns for some of the pressure on its metro radio business, with the company previously revealing that the fallout had contributed to a $26 million revenue shortfall.

The financial hit comes despite the company moving to cut costs, with operating expenses down by $11.8 million to $84.5 million.

ARN said it was targeting another $55 million in total cost reductions by the end of the 2027 financial year.

The broadcaster has also moved to shore up its balance sheet, reporting net debt of $49.4 million - $28.1 million lower than at the same point last year.

The company has extended its debt facility through to 2028.

ARN also confirmed it had reached a settlement with Kyle Sandilands, bringing an end to the legal battle over his terminated contract.

As part of the deal, ARN secured a 19.9 per cent share of net revenue from Sandilands' new ventures for up to three years, while the settlement removed $30 million in guarantees from ARN's balance sheet.

The company has separately agreed to sell its Cody Hong Kong business as it continues efforts to streamline the group.

ARN chief executive Michael Stephenson said the company remained focused on rebuilding its metro radio business after a difficult period.

'While first half revenue was impacted by residual brand safety issues in KIIS Breakfast and the Federal Election in the prior year, ARN's underlying audience position remains strong,' he said in the results.

'Our immediate priority is to regain metro radio revenue share.'

ARN chairman Hamish McLennan said the company was now 'leaner, financially stronger and more focused' as it worked to change its financial trajectory.

Since leaving ARN, Sandilands and Jackie 'O' Henderson have taken very different paths.

Sandilands has launched a new subscriber-only digital program, Kyle Sandilands Live, which began broadcasting this month. 

The show has reunited him with several former Kyle and Jackie O Show staffers, including newsreader Brooklyn Ross, but its first weeks have been plagued by technical problems, with one broadcast pulled off air early.

Henderson, meanwhile, has kept a lower profile since the show's abrupt end. 

She is still pursuing legal action against ARN over her dismissal, with the case ongoing.