Enero revenues down with APAC earnings contribution plummeting
The Enero Group has posted a five per cent decrease in net revenue from $127.3m to $119.5m in its 2014 financial year results.
However the group’s EBITDA – earnings before interest, depreciation, taxation and amortisation – rose 159 per cent from $3.5m to $9m, due to a drop in staff costs from $95.5m to $88.3m in the last financial year, while operating costs went from $26.5m to $22.6m.
The results, released quietly last week to the Australian Securities Exchange, show the contribution to the group from its Australia, New Zealand and Asian operations plummeted from 78 per cent of net EBITDA last year to 35 per cent. The UK and Europe contributed 47 per cent with and North America 12 per cent.
The company appears to have stabilised the ship posting a loss of $1.453m this financial year, compared to last year’s $82.1m loss, which included a $75.9m write down in the value of the business.
Australasia’s net revenues dropped in the last financial year from $75.4m to $60.2m while in the UK and Europe net revenues grew from $37.5m to $44.4m. The US largely remained the same posting a 2013 net revenue of $14.3m and a 2014 net revenue of $14.7m.
The group – whose agencies include Frank PR, Hotwire, BMF, Naked Communications, The Leading Edge, Dark Blue Sea and OB Media – attributed the improved EBITDA margin to “cost base reductions in staff and operating costs and stronger collaboration across the operating businesses”.
Enero Group CEO Matthew Melhuish said: “We continue to work tirelessly towards our strategic goals. The improved performance for this financial year is testament to the sharper focus on our financial performance and the ability of the operating businesses to embrace the group network, leverage the group assets and experience, and collaborate on opportunities.”
Australia, New Zealand and Asia’s contribution to the net revenue for the 2014 financial year was 51 per cent, while UK and Europe contributed 37 per cent and North America made up the final 12 per cent.
Cashflow for the group grew from $8.2m to $9.6m.
Operationally, the group said Frank PR and Hotwire continue to “perform strongly”, particularly in the UK, while BMF had an improved performance this financial year.
Naked’s “transition to a full service agency continues”, the group said, “with new leadership in all hub offices settled in”.
It also reported a high volume of pitching across all markets, particularly pointing to Australia’s new business record.
Naked has picked up a number of accounts this year including,the full-service creative account for the Victorian Metropolitan Fire and Emergency Service Board (MFB) and the Country Fire Authority (CFA), creative and PR for Red Rooster, the full service creative and media account for SBS, The Tontine Group and Hallmark Cards.
Miranda Ward
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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great news everybody! pay cuts all round!
wonder if/when the cost cutting will involve jettisoning their glamorous Enero head offices and maybe one or two of the well paid admin and HR people wandering around in it generating $0 revenue but costing rather a lot
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Some how I doubt that the HR girls jobs are under threat!!
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