Enero back in the black as profit lifts 336%

After posting a net loss of $2.8m last year, Enero is back in the black after posting a net profit of $6.6m, up 336% on the previous year.

Enero boardThe parent company of agencies including BMF, Naked, Frank and Dark Blue Sea, reported a rise in net revenue of 3% to $113.5m compared with $110.3m a year ago – with growth in international markets offsetting a drop in Australian revenue.

CEO Matthew Melhuish said the result had been driven by a prudent approach to the business over the past year.

“We have delivered revenue, operating EBITDA and margin growth this year which is a result of the focus around new business conversion and sensibly managing our cost base,” Melhuish said.

“Despite more uncertainty in trading conditions, our biggest businesses continued to lead the way for the group and our international market exposure in the UK, Europe and the USA provides more diverse revenue opportunities.”

Melhuish said the US would be  particular focus for the business over the coming year.

“Our focus for the coming year will be maintaining our margin, our new Sydney hub office and USA expansion.”

The company reported that 59% of its net revenue and 67% of its operating EBITDA now came from overseas.

The result was also helped by a weaker Australian dollar.

Enero’s operations in Australasia saw net revenue drop from $53.4m to $46m – a 13.9% slip – with smaller agencies in the group facing difficult trading conditions and reporting mixed results.

However, the struggle by smaller agencies was offset by a strong year for BMF which had a number of new business wins and came despite the loss of its longstanding Lion Nathan XXXX account.

By comparison, the UK and Europe reported a 15.3% lift in revenue to $51.2m while the US operations rose by 30.4% to $16.3m.

After steadily rising over the past year, Enero’s share price has settled, trading in the $1.15-$1.20 bracket


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.