ARN Media has revealed that the Kyle and Jackie O Show caused a $22 million drop in advertising revenue as companies pulled ads over brand safety concerns. CEO Michael Stephenson told shareholders on Thursday that the decline contributed to a $26.4 million loss in revenue for the 2025/26 financial year.
Stephenson said metro radio revenue fell by $28.3 million to $147.3 million, with most of that decline linked to clients who chose not to advertise due to issues relating to brand safety. “What has been obvious in recent times is that both consumer and advertiser expectations have changed,” he said.
The station terminated the contracts of Kyle Sandilands and Jackie O Henderson in February after an on-air blow-up. The duo, who were paid a combined $20 million a year under a 10-year contract, are now suing an ARN subsidiary for more than $160 million.
ARN chair Hamish McLennan told shareholders that Henderson’s leave of absence and refusal to work with Sandilands amounted to a repudiation of her contract. Sandilands’ conduct on 20 February was deemed serious misconduct, leading to his termination.
The pair had been Sydney’s top-rated morning show for years, but their expansion into Melbourne in 2024 struggled. McLennan expressed confidence in ARN despite a halving of its share price over the past year, and said he would invest $500,000 in company shares.
