ARN Media’s price plunge extends into second day
ARN's market cap has declined 68% since Stephenson was named CEO in October
The extraordinary decline of ARN Media’s market valuation continued on Thursday, with the company losing another 10%, after a fall the previous day of 14.9%.
ARN – owner of the Kiis and Gold FM radio networks – ended the day with a market capitalisation of $56.3m after briefly dipping as low as $50m.
The company’s 18c closing share price is now just a tenth of the $1.80 per share it was valued at five years ago, and less than 1% of the $18.40 it was trading at 20 years ago when the business was known as APN News & Media.
In the six months since Michael Stephenson was named as CEO, ARN has lost 69% of its market cap.
Market sentiment appears to have turned against ARN since the company axed the Kyle and Jackie O Show, triggering two seperate court actions from Kyle Sandilands and Jackie Henderson arguing they are owed the remainder of their ten-year contracts.
However, despite the volatile movement of the ARN share price this week, the swing was based on relatively small trading volumes, suggesting the company’s larger shareholders have so far chosen to stay on the register.
It was also a bad day for Enero, owner of agencies BMF, Orchard and Hotwire. Enero dropped to its lowest point since 2013, falling 4.4% to a market cap of $39m.
Meanwhile Vinyl Group bounced back by 10.5% today after last week falling back below a $100m market cap.
The Unmade Index closed almost flat for the day on 378.1 points.
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After failing to complete the deal for SCA (given the opportunistic share raid to cover up its digital and programming deficencies) its looks like a “home goal” with the axing of Kyle & Jackie.
The Chairman, Board and CEO should be held accountable – even though Stephenson only axed K&J. I am sure investors and advertisers are seeing the clear picture – turmoil and failure.