Enero Group has released its financial results for the year ending 30 June 2022 (FY22), delivering significant business growth with revenue increasing 20% and underlying operating EBITDA up 40%.
The results exceeded Enero Group’s trading update on June 8, 2022, to the ASX which upgraded the company’s projected result to a 20% revenue increase and 34% to 36% increase in operating EBITDA, for the full year.
Delivering on its global strategy, Enero’s revenue has grown by over 42% in just over 24 months. Since 2017, annual Enero revenue has increased from $100m in FY17 to $193 in FY22, alongside a strong operating EBITDA margin growth from 10% in FY17 to 32% in FY22.
Brent Scrimshaw, Enero Group, CEO, said: “In today’s dynamic global marketplace, brands need to rapidly evolve and embrace digital transformation to ensure business success, continuity, and leadership; and with our existing business combined with the recent acquisitions of ROI DNA and GetIT, we are well positioned to accelerate digital agendas and transformations for clients and brands.
“Throughout FY22 our global portfolio of innovative brands and services delivered strong operating results, continuing our trajectory of sustainable growth in revenue and earnings over the past five years. Enero’s revenue base is now highly diversified across segments, industries, and clients. Revenue was up 20% over FY22, while underlying operating EBITDA was up 40%, underpinned by strong operating leverage and EBITDA margin growth to 32%. This is the result of deliberate transformation of our portfolio and reflects our competitive position globally.”
Enero Group saw continued success with its brand transformation business segment – which includes agencies such as Hotwire, BMF and CPR – growing its net revenue by 11%.
PR and integrated communications agency Hotwire benefited from increases in all geographies, with strength in the major markets of the US, UK, and Australia. The ‘Reputation to Revenue’ service offering continues to gain momentum in the UK when combined with the performance marketing capabilities delivered from the McDonald Butler Associates acquisition in April 2021 and the acquisitions of ROI DNA and GetIT last month. Hotwire also welcome new clients LinkedIn and Peloton, amongst others.
Creative agency BMF benefited from government initiatives in FY22 H1 including the Federal Government’s ‘First things First’ COVID-19 vaccination campaign. The creative agency also took home key awards, including being named WARC’s most effective creative agency in Australia and number three in the world, Spikes Asia’s Creative Effectiveness Grand Prix, and the Mumbrella Award for Culture.
Meanwhile, Enero’s creative technology and data business segment – which includes digital and experiential agency Orchard and adtech platform OBMedia – increased its revenue by 34%.
OBMedia’s successful performance was underpinned by search engine revenue, delivering over 285 million consumers to advertiser websites, which was up 120% year on year.
Digital and experiential agency Orchard won new clients including Tourism Tasmania, amaysim, and Epson and was Highly Commended at the Mumbrella Awards for Specialist Agency of the Year and the most awarded agency at the PRIME Healthcare Marketing awards, taking home ‘Launch of the Year’, ‘Marketing Campaign of the Year’, and ‘Best use of Data and Insights’.
When looking to FY23 and the years ahead Scrimshaw said: “Our business is now focused on high-growth brand transformation, creative technology, and data verticals, and we are well positioned to utilise our specialist group of agencies to continue to sustainably grow in FY23 and beyond.
“With the addition of new capabilities, Enero has unlimited opportunity to grow in markets of scale such as the USA and with our new footprint, in Asia-Pacific. Through deep vertical expertise with integrated client support, we are confident that we can deliver ongoing growth as we leverage our existing growth in programmatic digital media, marketing automation, and data analytics services.”