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
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.