OBMedia, Enero’s proprietary performance advertising platform that helps publishers maximise the value of their ad inventory, has hit the slow lane.
Enero, the ASX-listed owner of creative agency BMF, the AdNews Agency of the Year, and Hotwire, has released a trading update giving early indications of results for the year to the end of June.
The company expects a 24% to 26% lift in net revenue to between $241 million and $244 million.
Creative Technology and Data net revenue of between $113 million and $115 million, a 30% to 33% jump in growth.
Brand Transformation (BMF and Hotwire) net revenue of between $127 million and $129 million, representing 19% to 21% growth.
Enero says cost-savings and restructuring are expected to deliver consistent margins for the Brand Transformation (BMF and Hotwire) of about 16%-17% despite a “challenging” macroeconomic environment.
However, OBMedia has reduced its traffic purchases from certain publishers in order to maintain its quality metrics.
“As a result, OBMedia’s revenue has been affected with the largest impact expected in Q4 (current Juine quarter),” the company told the ASX.
“OBMedia is committed to continuing to build trust and long-term business relationships with our key advertising partners.”
Analysts at financial services firm Canaccord Genuity say OBMedia's growth has been immune to the slowdown in the wider advertising market.
“But the development described in the update alludes to artificially high traffic in certain channels which could have impacted OBMedia’s business more profoundly without this self imposed intervention,” write the analysts in a note to clients.
And Canaccord Genuity believes there is value in Enero’s diversified media portfolio
Enero posted an almost 39% lift in revenue to $129.5 million in the half year to November. And net profit was up 8.1% to $14.8 million.
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