Marketing, technology and communications group Enero, the owner of creative agency BMF, Hotwire Group, digital and experiential agency Orchard and adtech platform OBMedia, has reported a drop in revenue for the September quarter.
The company told the ASX revenue was down 20% to $49.4 million in the three months compared to the same quarter last year.
Enero says agencies are cycling a strong comparative period.
Revenue has declined by 7% but above levels seen in the second half of last financial year.
Agencies margin of 16% is above prior year despite lower revenue, benefiting from cost cutting, and are expected to be within the guided range of above 18% in the December quarter.
Recent client wins include Sobi, Alinta Energy, ABB and Palo Alto Networks.
"Given a disappointing second-half decline in Enero’s share price, the board continues to believe that Enero remains undervalued relative to its financial performance and potential," chair Ann Sherry told shareholders at the annual general meeting.
"Our strategic framework and portfolio approach is delivering diversified revenue and earnings growth while building differentiated capabilities. We now derive over 30% of revenue from clients working with multiple Enero businesses across geographies.
"Enero Group now has a truly global offering working with blue-chip clients with large marketing budgets. 37% of the Group’s revenue is derived from clients in more than one geography which is a deliberate expansion strategy."
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