The Australian Radio Network (ARN) lost more than $26 million in advertising revenue as a result of the unsavoury content aired on the Kyle and Jackie O Show before its demise.
The revelation was made during ARN’s annual general meeting held today.
ARN Media owns and operates the KIIS network, which aired the Kyle and Jackie O Show until it was pulled off the air in March amid the fallout of an on-air stoush between its two stars, Kyle Sandilands and Jackie Henderson, on February 20.
During the AGM, ARN chief executive Michael Stephenson conceded it had lost more than $26 million in advertising revenue as a result of an exodus of advertisers who wished to distance themselves from the show’s unsavoury content before it was pulled off the air.
It contributed to a 10 per cent total revenue decline during the 2025 financial year, down to $285 million.
The admission is more shocking given that Sandilands and Henderson’s pay packets were a combined $20 million a year before they were pulled off air.
“Over time, I expect that a significant percentage of the $26 million of revenue that was lost through the year because of brand safety concerns to return,” Stephenson said.
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During the AGM, ARN’s chairman and non-executive Director Hamish McLennan was asked about reports he personally signed the $200 million contract with Kyle and Jackie O, which were each worth $100 million.
The pair inked the deals in 2023, which was meant to keep them on-air until 2033, but are now the subject of separate lawsuits brought by the former co-hosts.
“The actual contracts weren’t signed by myself, but I did sign a document that showed our commitment to rejoining,” he told the AGM.
“They were the largest radio talent that we had at the time and they were responsible for a lot of revenue coming in the door.
“And at the time, we were dealing with a competitive offer and so… we threw everything at the contract.”
Those contracts have since been terminated by ARN.
Since then, both Sandilands and Henderson have launched separate lawsuits challenging the contract terminations and each claiming compensation of $82 million – the amount left to pay out on the 10-year contracts.
McLennan addressed the current legal dispute involving Quasar Media, which is owned by Sandilands, and Jackie’s Henderson Media about seven minutes into the AGM.
“As shareholders are aware, an incident occurred on air between Kyle Sandilands and Jackie Henderson on February 20, 2026,” he read from a prepared statement.
“Following that incident, Ms Henderson took a leave of absence, during which she received the full support and care of management.
“On February 26, 2026, Ms Henderson advised that she could not ‘continue to work with Mr Sandilands’ and that ‘direct contact with Mr Sandilands [was] now untenable’.
“The company considered this a repudiation of her contract, on the basis that it was not possible for her to perform her core contractual requirement to deliver the ‘Kyle and Jackie O show’ and, as a result, her contract was terminated.”
McLennan said the company “engaged with Ms Henderson about the possibility of an alternative show on the ARN network, however an agreement was never reached”.
“The company also formed the view that Mr Sandilands’ conduct on February 20, 2026, amounted to serious misconduct. He was given 14 days to remedy; when he failed to do so, his contract was also terminated.
“Mr Sandilands and Ms Henderson have each filed a statement of claim against ARN Media, and we have now filed defences in response to each. ARN Media has also filed cross-claims.”
McLennan said that because the matters arose after the release of their results on February 25, “the matter was not required to be disclosed in the full year accounts for 2025”.
“I would like to assure shareholders that the board is committed to defending these claims and actively pursuing the cross-claims,” he continued.
“As these matters are now before the courts, we do not intend to comment further.”
Later, when asked about the company’s long-term financial future in light of the demise of the Kyle and Jackie O show, McLennan reiterated he would not talk about the show given it was before the courts.
Shareholders revolted over the company’s executive pay packets, given significant drops in the share price, and overwhelmingly voted against the company’s remuneration report, including Stephenson’s fixed $1.1 million pay, with more than 90 per cent of proxy votes opposing the remuneration report.
McLennan was re-elected as chairman, despite 20 per cent of proxy votes opposing his re-election.
In the lead-up to the AGM, he had faced pressure from investors to step down.
There as also been widespread criticism of his paypacket.
He promised to make a $500 million investment in the company as a “demonstration of my confidence in the company’s strategy”.
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