Enero’s revenues fall, underlying profit rises

Eenro, owner of creative agency BMF, reported a 7 percent increase in like-for-like net profit for the fiscal year ended in June, but recorded a statutory loss due to acquisition write-downs.

Net revenue decreased 6.2% to $189.7 million, primarily due to challenging conditions in the technology and advertising technology markets.

This was partly offset by “strong” contributions from BMF and Orchard agencies, which reported double-digit revenue growth and widening margins.

Public relations firm Hotwire continued to face technology-related headwinds.

Net revenue in the Technology, Healthcare and Consumer Practices sector decreased 4% to $143.5 million.

OBMedia net revenues decreased 8% to $46.2 million.

Enero reported a net loss after tax of $44.2 million, including a non-cash write-down of $70.8 million related to the acquisitions of B2B sales and marketing agency ROI DNA and specialist B2B technology marketing agency GetIT.

Maintaining tight control over costs, the company said trading results in July were “broadly consistent” with those at the end of the June quarter.

“In fiscal 2024, our Australian agencies, BMF and Orchard, have repeatedly demonstrated their ability to generate significant growth and deliver market-leading results for a range of highly regarded clients,” said CEO Brent Scrimshaw.

“This success is the result of our unwavering commitment to our operational strategy, world-class talent, best-in-class capabilities and renowned work.

“Despite the challenging trading conditions in the technology sector, our teams at Hotwire continue to integrate our customer offering into a global, market-leading suite of services that can uniquely impact customer reputation, relationships and revenues.

“When the technology sector starts to recover, we will be in a very good position to benefit from it.”

The company declared a final, fully franked dividend of 2 cents per share.

Numbers for the year to June 2024:

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