Enero reports revenue falls but profit improvement after a year of cuts
Marketing and communications network Enero – formerly the Photon Group – has reported a decline in revenue but an improvement in profits after cost cutting through most of 2017, the company reported in its half yearly results this afternoon.
The group’s net revenue fell 6.6% to $47.8 million, however earnings were up 17% to $5.7 million as a result of cutting costs, restructuring the US operation and closing Naked Communication’s London offices.
Enero CEO Matthew Melhuish: “A strong start to this financial year”
The US operation reported a 1.1% revenue improvement, while the UK operations fell 12.6% and Australia declined 5%.
The group, which includes BMF, Frank PR and Hotwire, also acquired independent creative technology agency Orchard Marketing last month.
In the announcement, Enero Group CEO Matthew Melhuish said: “We have ahead a strong start to this financial year, improving the margin and achieving increases in EBITDA and net profit.
“The acquisition of Orchard Marketing significantly strengthens our digital capabilities in Australia and the USA with Orchard not only operating as the Enero digital pillar brand, but also enhancing the digital capabilities across our other sectors.”
Enero’s announcement cheered investors with the company’s stock gaining over 6% during the day to finish at $1.08. Over the past year, the stock has traded between a $1.23 and $0.88. At the group’s peak in November 2007, it reached $4.77.
How do you start a small Business?
How can you buy a large US PR agency last year and still report a 6.6% revenue decline this year? The Eastwick acquisition should have meant a significant revenue increase!!!
There’s nothing wrong with cutting costs but if you can’t grow then you are fxxxxx!
that explains where the biscuits have gone. Good on ya Enero for squeezing a little bit more out
Watching Enero at work is like watching someone awkwardly deal with an air mattress. Except rather that blow up the air mattress for some reason they seem to be focused on forcing the air out. At this rate they’ll need to make a lot more acquisitions just to avoid deflation
Cost cutting their way to a profit.
Sounds like TLE and Naked Australia are going through a rough patch. You will always have someone not doing well. Problem is Enero don’t tend to help them get better. They usually end up dead.
Couldn’t grow a veggie patch let alone an agency
Business is run by beancounters, not entrepreneurs or risk takers with good ideas and a nurturing attitude for future success.
We have seen sharp revenue declines every year but one (and that was negligable) since 2012.
All they do is cut costs and merge/ close rather than allow good businesses to develop and grow.
The mindset and culture of the Group needs to change before we will see any topline growth.
Zombie corporation going nowhere. Needs to be broken or sold
Overpaid under qualified. Utterly uninspiring. It’s a miracle this ship hasn’t sunk and they still have jobs