Good morning, ladies and gentlemen, and welcome to the annual general meeting of HT&E. On behalf of the board, and in the spirit of reconciliation, I begin today by acknowledging the traditional custodians of the country in which we meet today across Australia, and their continuing connection to land, seas, sky, and community. Today, I'm on Gadigal land, part of the Eora Nation, and I pay my respects to the elders past and present, and extend that respect to all Aboriginal and Torres Strait Islander people. My name is Hamish McLennan, and with me in this room today are my fellow directors, Belinda Rowe, Roger Amos, Paul Connolly, and Alison Cameron. Also joining us are our CEO and Managing Director, Ciaran Davis, our CFO, Andrew Nye, Company Secretary, Jeremy Child, and Louise King, our auditor from PwC. I'm informed there is a quorum present, and accordingly declare the meeting open.
Today's meeting is being held in person and online, while we have all become familiar with such formats, I will provide instructions for raising questions and voting prior to the formal part of the meeting. 2022 delivered a strong result in what was a year of considerable change. Our core business maintained its market-leading position. The integration of our regional acquisition has been transformational. Digital investments are beginning to gain traction, we are well down the road to deliver on our goal of being the best audio business in Australia. Our revenue grew 53% to $345 million, underwriting EBITDA was also up 53% to $92 million. However, towards the second half of 2022, a range of macroeconomic factors impacted advertising markets, consequently media valuations from which HT&E is not immune.
In accordance with accounting standards, a full impairment review was conducted at the end of 2022, resulting in a non-cash impairment charge of AUD 250 million for the period. These standards require the company to consider both internal and external factors, such as the market capitalization of the business at the year-end relative to underlying assets, interest rate changes, the broader macroeconomic environment, and consensus estimates to reach a conclusion on the recoverability of intangible assets. The 12 months to December 2022 saw the share price of all media companies, including HT&E, come under significant pressure despite our business recording a good operational performance and the fundamentals of the audio sector remaining strong.
It is important to call out our views on the future of audio, including our strategic plans, the benefits we see from ARN Regional acquisition, and long-term forecasts that have not changed. We are very confident in the growth trajectory of ARN over the coming years and the importance of ARN Regional in providing a long-term strategic advantage for the company. Over the past number of years, through prudent financial management, astute decision-making, and good execution on strategic initiatives, HT&E has one of the strongest balance sheets in the Australian media sector today. In 2022, we exited our long-held position in Soprano for AUD 66 million in cash, a terrific result for a minority position. We'd been looking to secure the right exit for a number of years.
Cash consideration was a priority. I'm pleased that the transaction was finally completed in March of this year, generating a good ROI for shareholders. We also completely exited Luxury Escapes, selling our final shareholding for AUD 8.8 million in cash. Our regional acquisition meant that we had to sell one of our stations, 4KQ in Brisbane, securing AUD 12 million on a multiple of 12 times EBIT, which is a good outcome for a single station disposal and reinforces the value of radio assets in Australia. HT&E is a strong cash-generating business with operating cash flows of AUD 55 million last year. We have very little debt and access to undrawn credit facilities should they ever be required. Since I took over as chair, I've been committed to sharing the rewards of our efforts with shareholders.
It is a responsibility taken very seriously, and today, I assure you that this commitment remains as strong as ever. The company declared a fully franked dividend of AUD 0.05 per share at the half year, another AUD 0.052 in February. We've also uplifted our dividend policy, increasing the payout ratio to 65%-85% with a commitment to pay at the higher end of net debt if it's under 0.5 times. We also executed an accretive on-market buyback of shares. Whilst the payment of franked dividends remains our preferred means of capital management, with our share price where it is, we continue to believe HT&E is undervalued. At the current valuation, the buyback remains ongoing, and we believe it is in the best interest of shareholders.
This decision underscores our confidence in the business and our firm belief that our shareholders should reap the rewards for their support. We understand the importance of dividends in creating long-term shareholder value, and we remain resolute in our commitment to sustaining high dividend payments well into the future. However, it is crucial to acknowledge that our commitment to high dividends is not at the expense of strategic initiatives and long-term growth opportunities. We are mindful of the need to allocate resources prudently, capitalizing on emerging trends and embracing innovation.
Our aim is to strike the right balance between rewarding our shareholders and fueling the sustained growth of the business. We remain open to proactive to being proactive in assessing value-accretive opportunities that are in the best interest of all shareholders. Against this backdrop, I believe the company is exceptionally well-positioned to deliver organic growth in its core activities, while at the same time, a clear pathway of strategic is to strategically invest in future audio opportunities will always be pursued. ARN has a track record as the leading radio broadcaster in the country, with continued number one ratings performances in many key markets. Our strategy to recruit and retain the best on and off-air talent continues to pay off. Our focus is to increasingly leverage our investment in talent and content across all distribution channels.
Secondly, connecting with communities via broadcasting live and local content is at the core of what we do. It's what sets us apart from all other media in Australia, and we are committed to maintaining its uniqueness. Once we completed the acquisition of what we now call ARN Regional, we wasted no time getting to grips with the content and commercial strategy of the business, and the unique offering these stations play at the heart of regional Australia. I'm pleased to say that the acquisition and merging of our metropolitan and regional business units has progressed very well over the last 12 months, and is ahead of schedule, delivering increased audiences, delivering national revenue synergies, and continuing to grow local revenues.
Thirdly, we are investing strategically to realize new opportunities in the increasing trends towards digital audio consumption, particularly in the area of podcasting and live listening to radio and digital formats. ARN's digital audio revenue growth accelerated to 28% in H2 2022. While AUD 15 million represents less than 5% of our total revenues, the strong demand for live and on-demand audio in digital formats is generating new interest from our commercial partners, who have an appetite to reach audiences with specialized data and targeting. We are confident the investments we are making in content distribution and commercialization will see digital audio contribute meaningful revenues and earnings to, in the years to come.
With ever-increasing ways to consume radio content on mobile phones, smart speakers, and desktop computers, our industry body, Commercial Radio & Audio, has been working on developing enhanced radio listenership methodologies to capture this digital audience that is due for release this year. Ciaran will talk later on these developments. It is pleasing to see the industry pull together and work towards finding pathways to compete against global platforms. This industry body is working well and working hard on matters of importance to our industry. We all know that commercial radio listenership in cars is significant. 78% of Australians listen to the radio in the car, and 31% of all listening takes place in cars. Increasingly, numbers of these cars have connected entertainment systems.
Radio must be afforded prominence in connected cars and smart speakers. ARN is working with our partners at Commercial Radio Australia to advocate for government action in this area. Without this prominence, Australian local communities will lose access to local news, community announcement, and emergency event information, as well as news and entertainment. Radio stations should be easily discoverable by users on car entertainment systems and smart speakers. Car entertainment and smart speaker platform operators must be prohibited from restricting access to Australian radio. To finish, HT&E remains confident about the prospects and positioning of its core radio business, the delivery of the business case developed acquiring ARN Regional, and the emerging opportunities in digital audio.
We've developed market-leading brands, investing in talent to deliver audiences, trained our sales people to deliver world-class audio solutions, and are delivering digital trading platforms targeting new audiences of digital revenue. Before handing over to Ciaran, can I finish on a note of gratitude? Today, we are saying goodbye to Roger Amos, who retires as a director after five years on the HT&E board. Roger joined us in 2018, and we have benefited enormously from his wisdom and many years of board experience. He's been the chair of our audit and risk committee and played a pivotal role in the setting of HT&E's long-running tax dispute with the ATO. This is Roger's last board, and we wish him well on the golf course, for time with his wife and all the good things that you're gonna do, Roger.
I really do thank you for everything that you've done for us. It's been amazing. We are currently undertaking a search for Roger's replacement and will inform shareholders when the appropriate person has been selected. I would also like to take this opportunity to express my gratitude to the rest of the board members and thank them for their support. We have the right mix of skills, and I look forward to working with you as we navigate the opportunities and market conditions as we see them today. To our people, thank you for your commitment and your dedication. We operate in a creative, collaborative, and high-energy business, and we are very grateful for the crucial role that you all continue to play in our success. Finally, thanks to you, our shareholders.
This board and the management team remain aligned and determined to achieve the best possible returns for you, and we look forward to the continuing support of you all. I will now ask Ciaran Davis, our CEO and Managing Director, to make his remarks. Thank you.
Thanks, Hamish. Good morning, everyone. This morning, I'm gonna take you through our 2022 financial and operational highlights. I will also take the opportunity to share with you the transition we are making into a digital audio entertainment business. One with radio at the core, while also embracing the innovations and opportunities, new technologies, and changing media consumption habits are providing. Finally, I will outline our current trading environment and outlook. As the chairman has highlighted, it was a solid year's performance, delivered against the backdrop of global and inflationary concerns, which did impact H2 advertising sentiment, but highlighted the alluring and resilient nature of radio. Revenue post-acquisition was AUD 345 million, with EBITDA up to AUD 92 million, and EBIT AUD 72 million. NPAT grew over 57% to AUD 45 million, with EPS rising to AUD 0.146 per share.
In radio, we delivered record radio listenership and now broadcast to over 8 million nationally, nearly a third of Australia. We produced another number one metropolitan network share performance. In contrast to other conventional media, ARN is attracting and expanding audiences, not only through the realm of radio broadcasting, but also via cutting-edge digital platforms and new innovative formats. Our podcast audience saw growth of 54%. We are encouraged that this new audience is not coming at the expense of radio, but proving highly complementary. Digital audio is now a mass media. SMI figures show that the digital audio market was the fastest-growing digital market up to the 31st of December 2022, while PwC's Global Entertainment & Media Outlook found that digital audio revenue, including streaming, is forecast to reach AUD 3.7 billion by 2026.
We have made considerable progress growing new digital audiences and revenue opportunities, and we expect our digital audio operations to be earning positive on or before the end of 2024. We launched CADA, creating a national multi-platform youth brand. Gross reach has grown to over 3 million, and we are pleased that audio is a growing part of this audience's daily media consumption. The focus in 2023 is to accelerate the migration of CADA audience to more digital audio listening and formats. We are really encouraged after only 1 year of ownership of our regional business. It is a fantastic network of stations, and we are lucky to be working with a team of people in the regions who are so committed to their listeners and their community.
Local revenues grew 7% from a very strong year in 2021. We delivered on our business case acquisition case of AUD 7 million in national revenue synergies. A huge amount of work is going on in the finalization of all the systems integration, which we expect to have completed ahead of schedule by the end of Q3 this year. Rolling out a single inventory and finance system across the whole business, as well as providing our clients with a single invoice, making it easier to work with us across metro and regional markets. On Slide 7, we show the statutory result for the year. Group revenues were up AUD 120 million year-on-year, accelerated by the acquisition of a regional network.
Total costs increased AUD 91 million or 9% on a pro forma basis. Included our first-year investment in new platform, CADA, and the ongoing investment in new digital audio formats, content, and commercialization. This investment impacted underlying group EBITDA back 4% on a pro forma basis, although up 53% on 2021's restated numbers. Better market conditions delivered improved revenues and earnings for Cody, up 9% following the completion of the Hong Kong Tramways network contract in May. Earnings were up 31% on a like contract basis. With the Hong Kong economy continuing to recover post-COVID, the business is now cash flow positive and are actively investigating tender opportunities for contracts as they arise. We have an exceptionally strong balance sheet as of 31 December, with net debt of AUD 61 million.
This leverage has further improved following receipt of Soprano proceeds of AUD 66 million in March and now stands at less than 0.5 times. We are employing a low capital-intensive investment model for our digital growth program and taking full advantage of our long-term technological partnership with global platform iHeartRadio. There is also good tenure and undrawn limits remaining on the group financing facility, which means overall, our balance sheet, which we believe is one of the strongest in Australian media, provides confidence as we invest in digital audio formats, platforms, and proactively consider value-accretive opportunities. Opportunities will present themselves. The world of audio and audio entertainment has never been more exciting, and we are seeing advancements in technology such as AI, increased accessibility, and changing consumer preferences that are all contributing to how audiences engage with audio and newer forms of digital audio content.
As more and more people embrace podcasts, streaming, and voice-activated devices, the demand for high-quality audio content will continue to grow. This presents exciting opportunities for us to tap into the expanding audio market and engage in a highly receptive audience. At ARN, we are building a vision that aims to provide the most complete audio experience for our listeners and the most comprehensive audio solutions for advertisers. Our approach to value creation is centered on five key pillars: to continue generating strong returns from our core radio assets, to invest in new digital audio formats, to distribute that content as widely as possible, to build an integrated audio business, and to embrace digital transformation and AI innovation, where our focus is on harnessing the power of automation, artificial intelligence, and data-driven insights to enhance our operations, drive efficiency, and deliver exceptional experiences to our listeners and advertisers.
Our core radio business has been the foundation of our success for many years. With a loyal listener base and established relationship with advertisers, we are well-positioned to leverage our strengths and continue generating strong returns. 2022 was our most successful year ever for ratings. While strong ratings are not the only determinant of winning revenue share, they are a key ingredient. We continue to invest in the best on and off-air talent, and that investment is paying off with record listeners approaching 6 million per week in Metro and 8 million nationally. We are the number one radio network 25-54 and 10+. KIIS 1065 was Sydney's number one FM station, number one FM breakfast, number one FM drive. Kyle and Jackie O continue to go from strength to strength, achieving their highest ever share reach and reach in 2022.
WSFM recorded its highest reach with Jonesy & Amanda, the number two breakfast show in the city. Gold 104.3 was Melbourne's number 1 FM station, number 1 FM breakfast, number 1 FM drive, and with the station achieved its highest share since 2019 and its highest reach ever. Christian O'Connell is doing a terrific job and has been the number 1 breakfast show in that market for 23 surveys. The launch of CADA helped grow overall radio listening audiences at the younger end by 21%. Tight cost control in radio saw margins improve to 33%, and with CapEx low in radio, the business generates strong cash flow.
Ratings momentum has continued into 2023. Obviously, with the current economic uncertainty impacting advertising sentiment, I think it is useful to highlight the role of radio in the challenging cycle we are seeing at the moment. Firstly, let's acknowledge the enduring power of broadcast radio. Despite the proliferation of digital media, radio still has a strong presence in people's daily routines, providing them with a sense of connection, companionship, and discovery. Radio has consistently proven to be an efficient and effective medium in challenging times. Its role among advertisers and ad agencies is well known, with radio spend remaining consistently within the 7%-8% range of total ad spend despite the growth of new forms of media and social advertising over the past decade. Radio is a highly accessible medium, reaching millions of people across diverse demographics.
The various brands catering to specific interests, preferences, and geographic areas, businesses can now effectively target their desired audience without wasteful expenditures. It offers highly affordable advertising solutions. Production costs for radio ads are lower than those for television or static outdoor, making it a viable option for companies operating on tighter budgets. Additionally, radio allows for easy adoption and modification of advertisements, enabling businesses to respond quickly to changing market conditions without incurring significant expenses. Radio's flexibility and immediacy are crucial advantages that make it much more efficient. Lead times for production are short, with real-time updates and adjustments to ad campaigns. This agility enables our clients to respond swiftly to market dynamics or short-term trading offers. In a fake news world, building trust and maintaining customer engagement are paramount. Radio continues to earn the trust and loyalty of listeners.
56% now rank audio talent as the most authentic voices in their community, well ahead of TV, news websites, outdoor billboards, and social media. Moreover, the intimate nature of audio listening fosters a connection with the audience, facilitating emotional engagement and creating lasting brand associations. Finally, we saw during COVID the strength of communities rallying together to support local businesses. With about 70% of our regional revenues generated from smaller direct clients, radio plays a significant role in fostering this sense of community and encouraging local support. Businesses tap into these ties and engage with local-driven initiatives, further enhancing their impact and influence. Our company is well-positioned to capitalize on the opportunities that lie ahead in digital audio. Podcasting is now a mass medium in Australia and has experienced explosive growth and widespread adoption in recent months, reaching over 9 million Australians every month.
This trend shows no signs of slowing down. With advancements in technology, easier access to content, and a growing preference for on-demand and personalized experiences, podcasting has become a mainstream form of education and entertainment. Since we launched the iHeartRadio Podcast Network, we have been the leading publisher for 36 consecutive surveys, and in April of this year, we reached 6.6 million combined listeners with 29 million monthly downloads. We have more podcasts that deliver over 1 million monthly downloads than any of our competitors, and we have 5 of the top 10 podcasts, including number 1 Catch Up podcast and number 1 for crime, relationship, finance, and health and wellness genres. The advertising model is building, with brands eager to tap into engaged and captive audiences.
As the podcasting industry matures, advancements in data collection and analytics allow for more precise targeting and measurement. This data-driven approach not only enhances the value proposition for advertisers, but also maximizes the revenue generation by delivering the right message to the right audience at the right time. The advent of live streaming has opened up a new business dimension for engagement with radio businesses. Live streaming provides an interactive and real-time experience that allows us to connect with our listeners in unprecedented ways. It fosters a sense of community, enables immediate feedback, and opens doors for collaborations and partnerships between content creators and brands. I referred earlier to PwC's forecasted growth in live streaming, and I'm delighted to say that the radio industry has done a huge amount of work to help grow radio's addressable audience.
After many years of exploration and planning, CRA will soon launch Radio 360, a new measurement system that will add the streaming logs of millions of devices listening to live radio to the existing survey data of 60,000 people. It will give radio planners and buyers improved insights through more granularity of data and better planning tools. Further, it future-proofs the audience measurement system, enabling ingestion and of new digital data sources such as podcasting listening data. It brings great optimism for the future of audio planning across channels and devices, and will be embraced by advertisers seeking more accountability and addressability. Over the past three years, ARN has seen a 78% growth in live streaming, and now has over 10 million hours consumed a month.
While material revenue growth from live streaming is not expected in the short term, we believe the introduction of this addressable data for radio is a hugely positive step forward for the industry and will add another layer of digital capability to our revenue model. We see the distribution of our content across many platforms as possible as essential to our success. Expanding the availability of our content results in increased accessibility and greater opportunities for advertising and partnerships. Diversifying our revenue streams through broad content availability ensures we are not overly reliant on any single platform and making our business more resilient and capable of sustainable growth. We appreciate we do not have the right to exclusive control of our own audio. Sorry, excuse me.
We appreciate we don't have the right to exclusively control our own, our audience's ecosystem, so making our content available as widely as possible is a really important differentiating factor for us. Today, our content is available on over 200 connected devices and growing. Ladies and gentlemen, I believe we are in a strong position as we set about building an integrated audio business that not only generates strong returns from our core radio, but is also embracing new digital audio opportunities. The integration of broadcast radio, podcasting, and live streaming is not only a natural progression, but also a strategic move for our radio business. By embracing these platforms and recognizing the synergies between them, we position ourselves at the forefront of the evolving digital audio market. We can cater to the changing preferences of our listeners, forge new partnerships, and create innovative revenue streams.
This integration allows us to navigate the future with confidence and as we continue to provide compelling and engaging audio content to our audiences across multiple platforms. We call it the ARN Audiosphere, where this convergence creates synergies across content creation, distribution, and importantly, our sales efforts. By combining their sales skills and knowledge, we are building a sales team that can leverage the strength of each platform, capable of delivering comprehensive solutions, maximizing efficiencies, and forging strong client relationships. Our goal is to achieve digital audio profitability by the end of 2024, and I'm very confident we are well and truly on our way to doing that. We are committed to a disciplined approach that prioritizes profitability, and our strategy involves carefully assessing the ROI of each initiative and optimizing cost structures.
This confidence stems from the data that shows audience expansion in radio, podcasts, and live streaming has doubled the potential advertising market size for ARN in just two years. In 2020, ARN was a metropolitan-based radio business. Today, thanks to our regional acquisition and our investments in digital audio, we are connecting audiences and brands in a market that is worth AUD 1.4 billion. The future of digital audio holds immense potential for growth, innovation, and cultural impact. Our company is well-placed to shape the audio landscape in Australia. That is why you are voting today to change the name from HT&E to ARN Media. Since selling Adshel for AUD 570 million in 2018, we have set about delivering a market-leading radio business and building a digitally centered audio and entertainment business. In that time, we extended key talent contracts and our partnership with iHeartMedia.
We launched the leading podcast network. In 2021, we settled a long-running tax dispute and acquired 46 stations from Grant Broadcasters. Last year, we divested Soprano, providing further balance sheet strength. Today, I outlined for you our vision to embrace the world of audio and audio entertainment and leverage advancements in technology to drive shareholder value. I believe this name change reflects the ambitions we have building the most successful audio entertainment business in Australia. Thank you.
Thank you, great work, Ciaran and the management team. We have a fantastic company, great presentation. Now we'll move on to the formal part of the meeting. The arrangements for voting and asking questions online were in the online guide submitted with the ASX announcement of the AGM and also on our investor relations webpage. We expect you're all familiar with the process of online voting, I will summarize again for now. To register to vote, click on Get a Voting Card, enter your shareholder or proxy number, and click Submit Details and Vote. Your voting card will appear with the resolutions for the vote. Make your vote and then click Cast a Vote or Cast Partial Vote. If you wish to change your vote while voting is still open, click the Edit Card button.
At the end of the AGM, a red bar will appear counting down the remaining voting time. Please make any changes to your votes and submit before voting closes. To ask a question, you must first be registered to vote as just described. Clicking on the ASX Ask a Question tab brings up a click-down box to select the relevant resolution and an area to type your question, then click the Submit Question button. A View Questions box will also appear. Only you can see the questions you've asked. Questions could be submitted now before the AGM and up to five minutes after the meeting closes. If your questions have been answered and you would like to exercise your right of reply, you can also do so by submitting another question. Please keep your questions relevant to the items of the business at hand.
I also note that a recording of the AGM will be provided on HT&E's investor relations page. The results of the meeting will also be published on the ASX later today. I will now move to matters set out in the notice of meeting. Just before we start, we have some general questions, or at least one now. Ciaran, perhaps you read the question out on the screen and if I could ask you to answer it too.
Yep, sure.
Okay. Sorry.
Thanks, Hamish. The question is: What was the company's involvement in Kyle Sandilands' recent extravagant wedding? Did any of the directors or KMP attend? Were any company funds used? Was the chairman concerned to see who was in the wedding party, which led to a strong public criticism from the likes of News Corp's Andrew Bolt? First of all, you know, no directors or KMP attended the wedding. No company funds were used. The content that was generated from Kyle's wedding was certainly used on air to drive audiences. I believe the success of the type of content that Kyle and Jackie O do is shown in the fact that they have been the number one breakfast show for 34 consecutive surveys. They have the highest audiences in their history.
In survey 1 of this year, they became the number 1 overall breakfast show in Sydney, overtaking Ben Fordham. Content, yes, was used from the wedding, but it's used to generate audiences, which ultimately drives listeners, which ultimately drives advertising, which ultimately benefits shareholders.
Look, just the final bit. Even though it was a very public wedding, it was a private matter. I'm not gonna comment on who Kyle would like to invite to the wedding. I think enough said in that regard because it was meant to be a private affair, even though it was very well-publicized. It's up to him to choose with his wife who attends the wedding. That was a question from Stephen Mayne, too, just for the record too. The next question will come in the main body of the meeting, we'll just address that one in due course. To ask, as I've said, we now move on to Item 1 from the notice of meeting, and it's the ARN financial statements.
I table before the meeting the financial report, the director's report, and independent auditor's report for the year-end 31st of December, 2022 for consideration. I invite any questions or comments that you may have on those reports or on any company management. As mentioned, the auditor of the company, Louise King, is in attendance and can answer any questions that you may have about the conduct of the audience, the preparation and the content of the independent auditor's report, the accounting policies adopted by the company, and the independence of the auditor. Are there any questions or comments? Okay. As Item 2 relates to the reelection of myself, I will now hand over to our RemCo Chair, Paul Connolly.
Thank you, Hamish. Good morning, everybody. Item 2 is for the reelection of Hamish McLennan. We ask shareholders to consider, and if thought fit, pass the following as an ordinary resolution. That Hamish McLennan, who retires as a director by rotation under the Constitution of the ASX Listing Rules, and being eligible for reelection, be reelected as a director of the company. Hamish has acted as a director and chairman of HT&E since October 2018 and was last reelected in May 2021. His experience is described in the notice of meeting. The board supports his reelection. I now invite Hamish to say a few words about his experience and skills he brings to the board.
Hopefully I can do that from here. That's good. I've spent my entire life working in the marketing media, and I guess sports fields, along with technology. I think I've got diversified experience, which I can apply to HT&E. I'm particularly proud of what the board and management have achieved at HT&E. As you saw before, we've got a market-leading position and a very, very strong balance sheet. I think that collective experience has been brought to bear on HT&E. Also, just from a personal perspective, I love working. I love this business. I haven't missed a committee meeting and/or a board meeting since I've started at the company, and I think that is proof positive that I'm absolutely committed to the company, and I can manage all of my board roles adequately.
Thanks, Hamish. There is a question from Stephen Mayne regarding the reelection of Hamish McLennan. Hamish McLennan is arguably Australia's busiest professional director. How can he chair Rugby Australia, HT&E, REA Group, and Magellan Financial Group at the same time? Will he commit to reducing his workload, and could he explain how he currently splits his time?
Look, I think I've partially sort of answered that question. I like working. I still don't work as hard as I did when I was a full-time executive. I manage all of those board roles, I think very adequately, and still have time to spare, and not one of those companies, has suffered through any time constraints. There are ebbs and flows in terms of, how those, all those boards sort of operate, certainly around, reporting lines, but it's very easily managed from my perspective. My commitment to all shareholders across all of the companies that I work for is that I wouldn't do these roles if I couldn't dedicate the adequate time towards them.
Could I add, from a personal point of view, and confirm the availability for Hamish, not alone in a formal setting from boards and so on, but his accessibility is second to none from both management point of view and also from board point of view. There's a further question from Steven Mayne regarding the reelection of Hamish. Could Hamish explain how he represents News Corp on the REA board, but is somehow classified as independent of News Corp, our second biggest shareholder on our board? Given that Lachlan Murdoch is one of our biggest radio competitors, isn't it time we appointed a chairman who's completely independent of the Murdochs? Could Hamish and the next most senior director both comment on this?
I'm sure this question has come up in the past. I'm a long-term chairman of REA Group, and I think that I've treated all shareholders equally and fairly. If you look at the long-term success of that company, that in itself is one of the great success stories over the last 20 years. As Steven would know, HT&E does not have a News Corp representative on the HT&E board. They don't get any preferential treatment whatsoever. They don't get any information. I don't talk to, I don't talk to News Corp about HT&E's affairs whatsoever. There is complete separation between what HT&E does and our competitors.
Can I also confirm from a board point of view that the board has considered that question independently and has confirmed and is happy that Hamish is a independent Director and Chairman. Be no further questions in relation to this resolution. We will move to voting on this resolution. I advise that proxies received in this resolution are shown on the screen. Please make your vote online for Resolution 2. Thank you. I now hand back to Hamish.
Thank you, Paul. Thanks. We will now move on to the adoption of the remuneration report, which can be found on pages 46 to 61 of the annual report. Item 3 is to consider, and if thought fit, pass the following as an ordinary resolution. That the company's remuneration report for the year ended 31 December 2022 be adopted. I note that this resolution is advisory only and does not bind the directors of all the company. I now invite questions or comments on this resolution. We have another question from Steven. Could the CEO summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company?
Please don't say, "Look it up in the annual report and through ASX announcements." It's complicated over many years. The CEO could factually summarize the situation in 60 seconds. I think you might be able to actually do it sooner than that, Ciaran.
Thank you, Hamish. First of all, since my time as CEO of HT&E, I haven't sold a single share. I have also bought shares in my own personal capacity in the business that I've not sold either. In terms of the LTI grants that have vested or lapsed, I remain very committed to the business. I believe in the future growth of the business. We all know the undervaluation of media businesses today. I think what we've demonstrated this morning is the strategy that we're developing is in the medium to long-term interest of shareholders. I have done my best to portray a strategy that I believe will deliver strong shareholder growth and value in the future.
Look, I'd just like to add, too, just from the board's perspective, and I'd also say from staff's perspective, that Ciaran is an outstanding leader. He's always done the right thing by the company. We wish and we are determined to drive shareholder value through the share price. Ciaran's commitment has been second to none over a long period of time. If you look at the strong balance sheet and our number 1 ratings position, Ciaran has done a brilliant job, and we're lucky to have him. If there are no further questions in relation to this resolution, we will now move to voting on this resolution. In accordance with the Corporations Act, no persons nominated as key management personnel or KMP in the 2022 annual report or their closely related parties will vote on this resolution.
I advise that proxies received on this resolution are shown on the screen. Please make your vote online for Resolution 3. We will now move on to Item 4, the grant of deferred rights to the CEO and Managing Director. Item 4 is to consider, and if thought fit, pass the following as an ordinary resolution. That for the purposes of the ASX Listing Rule 10.14, section 200B and 200A of the Corporations Act 2001, and for all other purposes, approval be given for the issue of 74,856 deferred rights to Mr. Ciaran Davis, the CEO and Managing Director, in relation to the company's FY22 Total Incentive Plan award on the terms summarized in the explanatory notes. A voting exclusion applies to this Resolution 4. I now invite questions or comments on this resolution. Appears there are no questions there.
As there are no further questions in or any questions relating to this resolution, we'll now move to voting on this resolution. I advise that proxies received on this resolution are shown on the screen. Please make your vote online on Resolution 4. We now move on to Item 5, the change of the company name. As set out in the notice of meeting, the board considered it appropriate to change the company's name from HT&E Limited to ARN Media Limited. The proposed name reflects the company's focus on its Australia-wide radio network and the digital audio assets under ARN. The company aligns with the future direction of the company and follows the divestment in non-core assets such as Soprano. Approval is sought by special resolution, which requires at least 75% of the votes to be in favor of the resolution.
That for the purposes of sections 157(1)(a) and 136(2) of the Corporations Act, and for all other purposes, the company adopted ARN Media Limited as its new name, and with all references to the company's name within the Constitution be amended to reflect the company's new name. I now invite questions or comments on this resolution. I have another question from Stephen Mayne. Who came up with the bizarre Here, There & Everywhere name in 2017? Can you name another public company which has changed its name twice in six years? Also, why did you request the 1 in your new ticker code? This is confusing.
Stephen, you and I don't necessarily agree on a lot of things, but I have to agree with you on this instance, that the Here, There & Everywhere name is a little on the bizarre side. I think the board has shown good judgment to change the name back to its core operating entity. We're all very comfortable and think that ARN makes a lot of sense to all of us. I am not aware of any company that has changed its name twice in six years. I do apologize to our shareholders in the market for that. As for the final part of your question, I'm not sure.
Yeah, I can take that, Hamish.
Thanks.
The ARN ticker is already taken by somebody else, so this was deemed the most suitable and most appropriate.
Are there any more questions? This is again from Stephen. ARN is a meaningless acronym which stands for the Australian Radio Network. Why didn't we choose a name which actually included the word radio, given that we are Australia's biggest radio company? What other names did you look at it before settling on ARN Media? Which external parties did we pay to assist the name selection, and how much did we spend on rebranding? We spent no money on getting assistance with the rebranding. The market widely understands that when it comes to our assets, you know, namely KIIS FM and Pure Gold and others, or WS Gold, they all refer to ARN Media. This was just a pragmatic, sensible discussion that we made.
A little bit of money, nothing meaningful will be spent on sort of rebranding stationery and a little bit of signage, that's it. I can assure you, Stephen, from my years in advertising and marketing that we did this in the most low-cost, common sense way to do the right thing by all shareholders. ARN has been adopted by all of our media buyers and direct clients, and that's how we are known, so we've just made the most common sense decision in that regard. ARN, as an operating entity, is the one that had currency. What we actually didn't wanna do was spend money on branding and waste shareholder funds to try and establish a new brand, which would just take a long time and create more confusion in the market.
We think that is the best decision for all shareholders. As there are no further questions in relation to this resolution, we will move to voting on this resolution. I advise that proxies received on the resolution are shown on the screen. Please make your vote online on Resolution 5. The final matter is Item 6, approval of financial assistance. Approval of financial assistance. This item is also a special resolution which requires at least 75% of votes be in favor. Item 6 is to consider, and if thought fit, pass the following as a special resolution.
In accordance with sections 260A and 260B(2) of the Corporations Act, the shareholders approve the provision of financial assistance by each ARN Regional group company, as defined in the explanatory notes, in connection with the acquisition of Australian Radio Network Proprietary Limited, a wholly owned subsidiary of the company. Of all the issued shares in each ARN Regional group company acquisition, all elements of that transaction may constitute financial assistance by any ARN Regional group company for the purposes of the Corporations Act in connection with the acquisition described by the explanatory notes. I have another question from Stephen, I'll throw to you, Roger, for your final swan song here.
It's a question from Stephen that says, given the interesting discussions across a range of topics today, including the financial assistance resolution, could the chair undertake to make an archive copy of the webcast full of the transcript of proceedings available on the company's website? The likes of Nine, AGL, ASX, ANZ, Domino's, and Lendlease all produced their first AGM transcripts in 2021. Will you follow suit today? This is something IAG has been doing since 2003. I think we've already stated just upfront that this recording will be made available for all for all of our shareholders on the company's website. I think that is adequate. Just Roger, just any sort of final comments on the company just before we wrap up the meeting.
No. I think we've, this is just further tidying up as we, rationalize more the number of companies we have in our group and reduce costs. I thank Stephen for his comments.
We've actually just had another couple of questions come in. I'll just quickly address that before we close the meeting. We've spent AUD 36 million so far buying back shares at an average price of AUD 1.59, with the stock today at AUD 1.02. Does the CEO and Chair agree that this has been a poor allocation of capital? I will firstly throw to Paul. Perhaps you just can make some comments, and then I'll add to it.
Obviously we've made, over the last number of years, maintaining a share buyback program. We feel it has provided excellent value on throughout the periods. We have full confidence in the value of the company, we believe it's currently undervalued by a significant margin. There's been significant amount of tidying up of the balance sheet and the investments over the last number of years. The business now, thankfully, is effectively debt-free and in a position, together with significant credit lines, to assess any relevant or reasonable opportunity for expansion.
Look, I'd just add to that by saying, the intention of the board is to, you know, drive stockholder and share value. You know, we are disappointed that we're at AUD 1.02 or thereabout at the moment. We will continue to look for ways of managing our capital adequately, and again, driving shareholder value. That is a clear focus of the board, and we will continue to focus on ways in which we can drive value for all shareholders in that regard. Have we any more questions? Please-
Well, I mean, I think we would always do a trading update, which is, of course.
Sure.
We'll do that before you close.
Okay, sure. Please make your vote online for Resolution 6, please. Shareholders are reminded that they can submit their vote online until 5 minutes after the meeting closes. What I'll do just before we close the meeting is do a trading update for Ciaran, who will come back.
Apologies, I got too excited waiting for the questions. ARN. On a trading update, ARN has had a strong start to the ratings year, with continued growth across our key 25, 54-year-old audiences across the first two surveys. Radio revenues to the end of April finished back 5%. Excluding the impact of government spend in the prior year, revenues will be back 2% year-on-year. Regional markets are proving defensive in the current environment, with local regional revenues compromising about 70% of total regional revenues to the end of April, finishing flat year-on-year. Against a strong election spend comparison in May 2022, radio revenues for the month of May are pacing back 10% year-on-year. Excluding the impact of federal government election spend in the prior year, revenues would have been in line.
In a shortening market, June bookings continued to build, and radio revenues are pacing low single-digit back year-on-year. Digital audio revenues to the end of June are pacing 20% up year-on-year. In light of current trading, we have initiated temporary cost measures to limit total people and operating costs to near flat year-on-year for 2023 compared to a February guidance of 4%+. At CODY Outdoor has had a strong start to the year, with revenues for the first half expected to finish up over 25% year-on-year. Thank you.
Thank you, Ciaran. Ladies and gentlemen, that concludes the business of the meeting. On behalf of the board, I would like to thank you for your support and I now declare the meeting closed. The results of the poll will be announced on the ASX later today and will be available on the company website. Thank you for your attendance and participation in this meeting. As there is no further business, I've declared the meeting closed. Thank you, everyone.