ARN reveals true cost of Kyle and Jackie O blow up as it falls to $28m loss

ARN Media has revealed that the explosive fallout between Kyle Sandilands and Jackie “O” Henderson has cost more than $17 million in legal costs as the company posts a 14 per cent drop in revenue.

In its half-yearly financial results published on Friday, ARN reported a sobering loss of $28 million as revenue fell to $128 million.

ARN chief executive Michael Stephenson attributed it to “residual brand safety issues” following the breakdown of the Kyle and Jackie O Show and a lack of advertising revenue during the last federal election.

“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, and our immediate priority is to regain metro radio revenue share,” he said.

ARN’s more than $17 million in legal costs include the $12 million settlement to resolve an unfair dismissal dispute with Sandilands.

The company’s legal woes will, however, continue when it meets Henderson in the Federal Court in October to fight her own $80 million contract claims.

ARN will suspend dividends until the ongoing legal matter is resolved.

Read more

‘Both shows will air this year’: ARN’s reveal on Kyle and Jackie replacement after 14% revenue fall

Chairman Hamish McLennan admitted the half-yearly results were “not where we want ARN to be”.

ARN has tried to improve its financial position by settling the legal matter with Sandilands and agreeing to sell its Hong Kong-based advertising business Cody.

“We are taking deliberate action to simplify the portfolio, strengthen the balance sheet, reset the cost base and focus capital on the parts of the business that can deliver sustainable growth, and stronger shareholder returns over time,” McLennan said.

The Kyle and Jackie O Show on KIIS FM blew up following an on-air feud between the long-time hosts in February.

Henderson stormed off the show and refused to return, telling her employer that she would not work with Sandilands.

Sandilands was accused of bullying Henderson, which he has denied.

ARN tore up both Henderson and Sandilands’ contracts despite approving their show’s 10-year $200 million contract in 2023, sparking legal action from both hosts.

The company will officially launch two new breakfast shows in Sydney and Melbourne later this year to fill the void left by The Kyle and Jackie O Show.