Enero in the red as revenue, profits erode
Enero Group has seen its net profit after tax plummet by 52% for the first half of the financial year, with revenue down 12%, and EBITDA falling by 31.5%.
Enero Group owns creative agency BMF, the Hotwire Group, which includes PR and comms agencies Hotwire and ROI DNA, digital and experiential agency Orchard, and adtech platform OBMedia.
It credits its weak half to macroeconomic conditions, and challenging technology and AdTech markets, while its net profit dive is reflective of “a higher effective tax rate.”
Restructuring costs of $2.6 million, and value markdowns of $1.4 million, saw the group post a net loss of $800,000, despite reducing overall expenses by 6% year-on-year.
Enero’s shares dived by 7% within an hour of the market opening on Wednesday morning, following the results announcement.
Enero Group will pay an interim dividend of 1.5 cents per share, fully franked, representing a payout ratio of 42%, which the board credits to a “strong balance sheet.”
Earlier this month, Enero appointed Ian Ball as its new chief operating officer, to replace outgoing CEO, Brent Scrimshaw.
Related Content
