Enero reported strong earnings growth in the September quarter, driven by performance at BMF and Orchard, plus a tight grip on costs.
In a trading update to the ASX, the company posted EBITDA (earnings before interest, taxes, depreciation and amortisation) growth of 13%.
Revenue for the quarter came in at $34.2 million, up 1% on the same three months last year.
BMF starred with recent “large client” wins. The creative agency posted an 18% increase in revenue to $10.2 million in the September quarter with new revenue to come in the December quarter.
Margins at BMF expanded to 21.6% from 18.8% in the same quarter last year.
BMF was last week crowned Effective Agency of the Year at the Effie Awards for the second year in a row.
Orchard’s growth, with revenue up 17% to $6.7 million, was driven by healthcare and consumer verticals with expanded service offerings and client wins.
Hotwire Global continues to navigate a “challenging” technology sector environment, with more cost cutting including role reductions and selective offshoring.
Enero has appointed a new global CEO for Hotwire, starting January, but didn’t reveal who that is.
Enero Group CEO Ian Ball said the company has demonstrated resilience of a diversified portfolio model.
“Our Australian agencies continue to perform strongly, offsetting softer conditions in the global tech sector where Hotwire operates,” he said.
“We’re taking deliberate action to reset and refocus Hotwire under new leadership, sharpening its focus on innovation, performance, and growth. T
“Together with ROI·DNA’s largest-ever client win, strong AI product momentum, and a leaner operating model built on automation and global centres of excellence, we’re building solid momentum in a dynamic market.
“Across the group, our diversification continues to provide balance, stability, and opportunity, enabling consistent performance even as conditions vary by sector and geography.
“Our focus remains on transparency, disciplined execution, and continued investment in our agencies to ensure Enero grows by delivering superior client value in a rapidly evolving environment.”
September quarter results by business line:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.