Enero Group reports declining profits and revenue

Enero Group has reported a 52% drop in net profit after tax for the first half of FY25, alongside a 12% decline in revenue and a 31.5% fall in EBITDA. The company attributes its weak performance to macroeconomic pressures and challenges in the technology and AdTech sectors, which have weighed heavily on its financials.

Despite reducing overall expenses by 6% year-on-year, the company posted a net loss of $800,000, impacted by $2.6 million in restructuring costs and $1.4 million in value markdowns. Enero's shares fell by 7% within the first hour of trading following the results announcement.

Performance across Enero’s agencies

Enero owns BMF, Hotwire Group (which includes Hotwire and ROI DNA), digital and experiential agency Orchard, and AdTech platform OBMedia. While the company faced headwinds, its Technology, Healthcare, and Consumer (THC) Practice, which includes BMF, Hotwire, and Orchard, was a notable bright spot, achieving 17% EBITDA growth in the half.

The THC Practice delivered some of the Group’s most awarded work to date, with:

• BMF named Australia’s Most Effective Creative Agency at the Australian Effie Awards

• Orchard emerging as the most awarded healthcare agency at the PRIME Awards

• Hotwire winning Best Account-Based Marketing Campaign at the B2B Marketing Awards

The Group also secured major new business wins, including OpenAI, GSK, Tourism Tasmania, and Westpac, with BMF’s appointment as Westpac’s strategic brand and creative agency marking the agency’s biggest win in its 28-year history. Enero added that 56% of its revenue in the half came from clients working across multiple THC brands or markets, signaling a growing integration strategy.

Leadership and future direction

Enero’s results come amid a leadership transition, following the appointment of Ian Ball as chief operating officer earlier this month. Ball replaces Brent Scrimshaw and brings extensive experience across Asia, the UK, Europe, Australia, and the U.S. in professional services and growth strategy.

Ball said, “I am excited to have joined Enero Group and have already seen the depth of talent and creativity that exists across the business. There is significant potential for future growth and value creation, and I look forward to working closely with the leadership teams to unlock new opportunities and drive the business forward.”

Despite the challenging market conditions, Enero has declared a 1.5 cents per share interim dividend, fully franked, with a 42% payout ratio, which the board attributes to a strong balance sheet.

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