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Enero shares jump more than 30 per cent as group turns out profit despite 9% revenue drop

enero logoShares in marketing communications group Enero jumped to their highest level since the group refinanced as it announced it has turned around a $77m loss this time last year to record a profit of around $200,000, in its half-yearly results.

Last year the group struggled after writing down nearly $76m worth of assets as it looked to realign the business, and has this year reported revenues of $61.6m for the first half of the year, down nine per cent on the second half of 2012.

At the end of last week shares in the group leapt from 69c to 90c each on the back of the news, the most the group has been traded at since the refinancing when it was known as the Photon Group in August 2010.

However, costs savings coming from creating business hubs by co-locating businesses like BMF and Naked Communications in Sydney, and pulling together back-end systems, as well as reducing staff costs by $8m per year.

However, pro forma revenue was down just six per cent, when the effect of businesses no longer in the group’s portfolio is taken into account.

The US and UK operations contributed 48 per cent of the revenue for the Group this half, from 40 per cent at the same period last year, with the remainder coming from Australian operations.

In a statement released to the Australian Securities Exchange CEO Matthew Melhuish said he was “pleased with the progress” of the group adding: “Our determined focus on implementing stronger business disciplines and generating a margin from existing revenue will continue as we look to carry this momentum into the second half of the year.

“While the improved results are encouraging there is still much to be done in strengthening our network of operating businesses to ensure reliable results are achieved and maintained.”

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