Enero Group reports net revenue up 20% in FY22
Enero Group, parent company of agencies including BMF, Hotwire and Orchard, released its full year earnings for the 12 months ending 30 June 2022, reporting net revenue up 20% and underlying earnings up 40%.
The FY22 reporting period saw the company ‘deliver on its operational strategy’ and continue to generate strong growth across all key financial metrics with net revenue and operating EBITDA slightly above the guidance provided on 8th June.
Net revenue was up 20% over FY22 (193.4 million), while underlying operating EBITDA was up 40% (62.2 million).
The brand transformation segment saw continued revenue growth from all agencies, with net revenue up 11.3% to $106.7 million. Hotwire benefited from growth in all geographies, with strength in the major markets of the US, UK and Australia.
The Creative Technology & Data segment growth was underpinned by Orchard and OB Media’s growth, with net revenue up 34.0% to $86.7 million. OB Media’s performance delivered over 285 million consumers to advertiser websites, up 120% year on year and a 30% improvement in unique visitor conversion, while Orchard onboarded new clients including Tourism Tasmania and Amaysim.
FY22 operating cash flow was $48.8 million, with the business delivering high EBITDA to cash conversion of 96%.
Commenting on the results, Enero Group CEO, Brent Scrimshaw said: “Throughout FY22 our global portfolio of innovative brands and services delivered strong operating results, continuing our trajectory of sustainable growth in revenue and earnings over the past five years. In line with our operational strategy, Enero’s revenue base is now highly diversified across segments, industries, and clients.”
On Enero Group’s outlook for continued growth in FY23, Brent Scrimshaw said: “Having positioned our business to be focused on high-growth brand transformation, creative technology, and data verticals, we are well positioned to utilise our specialist groups of agencies to sustainably grow in FY23 and beyond.”
Directors declared a final dividend of 6.5 cents per share, fully franked, up 48% on FY21’s final dividend, bringing the total FY22 dividend to 12.5 cents per share.
Enero is trading at 3.27 AUD per share today, with a market capitalisation of 300.51 million.
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