Enero Group posts nine per cent decrease in net revenue

enero logoThe Enero Group has posted a nine per cent decrease in net revenue from $61.6m to $56.2m in its half yearly results for the six months ended December 31, 2014.

The group’s EBITDA – earnings before interest, depreciation, taxation and amortisation – was also down by 8 per cent down from $5m to $4.6m. This was despite a drop in employee expenses from $45.405m to $41.173m and a drop in operating expenses from $53.277m to $48.018m.

The half-yearly results for the group, which owns agencies including BMF, Naked Communications and The Leading Edge, were released quietly last week to the Australian Securities Exchange and show it recorded a profit of $974,000 for the six months ended December 31.

The results show the net revenue contribution to the group from its Australia, New Zealand and Asian operations was 52 per cent, consistent with the half yearly results in the 2014 financial year. UK and Europe account for 37 per cent while the USA makes up the remaining 11 per cent, with revenues there down 27 per cent for the six months.

Australasia’s net revenue dropped by 7.6 per cent from $31.7m to $29.3m, however its overall contribution to operating EBITDA was 53 per cent of the group, up from 31 per cent last year, up to $4.4m from $2.6m.

The report says that was a result of more settled teams in Australian businesses and good new business conversion.

While net revenue was down overall, so was staff costs and operating expenses.

In terms of agencies, the report highlight PR businesses Frank PR and Hotwire as ones that continue to perform well “across many of their respective markets”.

Naked Communications continues to progress with “strong momentum” in the UK while BMF is in line with expectations.

The Leading Edge “has good momentum in both Australia and UK and is improving”.

Miranda Ward


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