Enero resets talks to sell OBMedia

By AdNews | 15 August 2024
 
Credit: Claudio Schwarz via Unsplash.

Enero has its eye on contractual negotiations to sell its holding in adtech platform OBMedia by the end of the year.

The ASX-listed  company, which owns BMF and HotWire, says it’s “actively engaged” in a non-exclusive due diligence process with multiple bidders.

“The OBmedia sale process remains ongoing and Enero anticipates engaging in contractual negotiations with a preferred bidder at the conclusion of the due diligence phase (December quarter),” CEO Brent Scrimshaw told analysts in a briefng on full year results.  

The company had already received multiple non binding, indicative offers but negotiations with a preferred bidder weren’t successful.

Enero has a 51% economic interest in OBMedia, a proprietary performance advertising platform that helps publishers maximise the value of their ad inventory.

The unit’s net revenue dropped 8% to $46.2 million in the year to June. 

The company said market-wide weakness impacted the results, with some recovery in the June quarter.

OBMedia continued to invest in data science capabilities, developing AI tools for content creation and automated campaign activation. 

Enero as a whole posted a 7% rise to $10.3 million in like-for-like net profit for the year to June. 

Net revenue fell 6.2% to $189.7 million, largely driven by challenging technology and adtech markets.

This was partly offset by a “strong” contribution from agencies BMF and Orchard with double-digit revenue growth and expanding margins.  

A slide from the analyst briefing:

enero obmedia update august 2024 from presentation

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