Highlights

  • GTN expects to pay a final FY26 dividend of approximately $10 million, equivalent to around $0.05 per share.
  • The company forecasts FY27 Adjusted EBITDA of $15 million to $20 million following cost-reduction initiatives.
  • Strong cash generation and improved working capital have strengthened GTN’s balance sheet despite significant shareholder returns.

Overview

GTN Limited (ASX:GTN) has provided an update on its FY26 earnings outlook and capital management plans, highlighting resilient cash generation despite challenging trading conditions. The company expects to finish FY26 with cash of between $28 million and $32 million and modest net debt. While revenue and earnings are projected to decline from the previous year, GTN remains committed to shareholder returns through a proposed final dividend. Looking ahead, management expects cost-saving initiatives implemented during FY26 to support a significant improvement in profitability during FY27.

How Is GTN Maintaining Strong Shareholder Returns Despite Lower Earnings?

GTN continues to prioritize capital management, with the Board expecting to declare a final FY26 dividend of approximately $10 million, subject to bank approval and audit completion. The proposed payout represents roughly $0.05 per share and reflects the company’s confidence in its cash position. Despite returning substantial capital to shareholders through a capital return and interim dividend, GTN expects to end FY26 with a stronger balance sheet than a year ago. Positive operating cash flow, improved working capital management, and proceeds from asset sales have helped support the company’s financial position.

Why Does GTN Expect Earnings to Improve in FY27?

Although FY26 earnings were impacted by difficult market conditions, GTN expects a stronger performance in FY27. Revenue for FY26 is forecast to decline to between $150 million and $155 million, while Adjusted EBITDA is expected to range from $8 million to $10 million. However, management believes recently implemented cost-reduction initiatives will deliver meaningful benefits next year. As a result, GTN is forecasting FY27 Adjusted EBITDA of between $15 million and $20 million. The company has also indicated its intention to distribute 100% of net profit after tax to shareholders during FY27, reinforcing its shareholder-focused strategy.