Enero Group has reported a 7% like-for-like increase in net profit to $10.3 million for the 12 months ending 30 June 2024 (FY24), attributing this growth to the double-digit expansion of its Australian-based agencies.
Net revenue declined by 6% on a like-for-like basis to $189.7 million in FY24.
Enero Group owns a portfolio of marketing, technology, and communications businesses, including creative agency BMF, PR and integrated communications agencies under the Hotwire Group (Hotwire, ROI DNA), digital and experiential agency Orchard, and adtech platform OBMedia.
According to the Group, the results were driven by lower interest expenses and higher profits in wholly owned businesses, partially offset by lower profits from non-wholly owned OBMedia, which faced challenges in the international technology and ad tech markets. The US-led Hotwire Group “continued to navigate technology headwinds.”
The strong performance of Australian-based agencies BMF and Orchard helped mitigate some of these challenges, delivering double-digit revenue growth with expanding margins.
The Technology, Healthcare, and Consumer Practice (THC Practice) agencies also made significant progress, with 66% of the group’s revenue now coming from clients engaged with more than one THC Practice brand or country.
By the end of FY24, THC Practice had 34 clients with annual revenue greater than $1 million, up from 27 in FY23.
“Throughout FY24, our Australian-based agencies, BMF and Orchard, repeatedly proved their ability to drive substantial growth and deliver-market leading outcomes for a roster of blue-chip clients,” said Enero Group CEO, Brent Scrimshaw.
“This success is driven by our ongoing dedication to our operating strategy, world-class talent, best-in-class capabilities, and renowned work.
“Despite the tough trading conditions in the technology sector, our teams at Hotwire have continued to integrate their client offerings into a global, market-leading suite of services that can uniquely drive reputation, relationships and revenue for clients. When the technology sector recovers, we are in a very strong position to benefit from it.”
In July, BMF appointed Stephen de Wolf as its new chief creative officer, following the departure of former CCO Alex Derwin, who left in April to set up his own shop after almost nine years with the agency. Derwin joined BMF in 2015 as creative director, became ECD in 2018, and CCO in 2020.
See also: Enero predicts 5-7% revenue decline, but Australian agencies grow in tough market
Top image: Brent Scrimshaw, Enero Group chief executive officer