Enero Turns The Corner After Posting Positive Half-Year Results
Enero CEO Matt Melhuish has described the group’s half-year results to the end of Devember 2015 as pleasing, the first time the Australian-listed network has come out with a positive assessment since renaming the group from Photon.
In his true modest style, Melhuish has underplayed the performance with the group reporting a three per cent revenue increase, but a staggering 57 per cent increase in EBITDA.
Melhuish, the M in the group’s flagship creative shop BMF, said that Enero had a three-stage plan of remedial, reliable and reimagined. “We see ourselves as being squarely in the middle of the reliable phase,” he said.
Part of the group’s reliability may well stem from the fact that 75 per cent of its stock is now owned by six institutional investors.
“Our investors know the company’s plan and are all adopting a long-term view,” Melhuish added.
Enero’s positive result came largely on the back of a strong performance in the UK and Europe, where it increased revenue on a constant revenue basis by 13.1 per cent and EBITDA by 63.9 per cent. A favourable currency exchange boosted the impact of the improved Pound-based businesses.
The Australian business had a disappointing revenue result, dropping 21.8 per cent, but managed to largely maintain margins dropping from 15.0 per cent to 14.4 per cent.
The group also has a modest war-chest with $34 million in the bank and no debt. However having been burnt by irrational exuberance in past purchases, any acquisitions will likely be modest and more carefully thought through.
Shares in the group ahead of the announcement were trading at 86 cents with a “strong buy” recommendation from a consensus of brokers. The group is a vastly stripped down entity from its former days as Photon now comprising a handful of companies including BMF (who announced it had won the Dulux account yesterday), Naked, Frank PR, The Leading Edge, Hotwire PR and Precinct. It has offices in Australia, the UK and the US.
Its market capitalisation is $73 million compared to the only other Australian listed communications network STW (recently merged with WPP), which has market capitalisation of $328 million. To give an idea of scale, REA Group has a market capitalisation of $1.5 million and APN Outdoor Group’s is $900 million.
The full annoucement to the ASX is below:
Results for half year ended 31 December 2015
Enero Group Limited (ASX: EGG) today announced its results for the half year ended 31 December 2015.
Summary:
Net Revenue up 3% and Operating EBITDA up 57% on prior period.
Improved Operating EBITDA margin to 12.6%.
Net profit after tax to equity holders $3.7m.
Improvement in earnings demonstrating squarely in the “Reliable” phase of Group strategy. Enero Group CEO, Matthew Melhuish said: “We are pleased to report significant improvements in our group financial performance. A more stable revenue base, increased margin and a number of new business wins were key highlights for the first half. Our UK and European operations were particularly strong. Progress is being made with the USA market but will require further time and investment”.
Financial performance: A$ million
Net Revenue Operating EBITDA1 Net profit after tax to equity holders2 Operating EBITDA Margin
Notes:
1HFY2016 1HFY2015
Variance
- Operating EBITDA is net profit before interest, tax, depreciation, amortisation, impairment, loss on sale, commercial settlements and restructuring costs. Operating EBITDA is the primary measure used by management and the directors in assessing the performance of the Group. It provides information on the Group’s cash turnover excluding significant transactions and non-cash items which are not representative of the Group’s on-going operations or cash flow.
- In the prior reporting period, net profit after tax includes significant items of $0.6m. Refer to attached results presentation for detailed analysis.
- The results announcement and attached presentation includes the following measures used by the Directors and management in assessing the on-going performance and position of the Group: Operating EBITDA, NPAT before significant items and NPATA before significant items. These measures are non-IFRS and have not been audited or reviewed.
Business operating performance:
Net Revenue was up 3% and Operating EBITDA was up 57% on the prior year. The Operating EBITDA margin increased to 12.6% due to a more stable revenue base and appropriate cost control. International markets now represent 60% of the Group’s net revenue and 69% of the Group’s Operating EBITDA.
Refer to the results presentation for further details on operating business performance.
Please login with linkedin to comment
Advertising Standards Bureau Multiple Sclerosis Society SamsungLatest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.