Enero, the owner of creative agency BMF, posted a 7% rise to $10.3 million in like-for-like net profit for the year to June but reported a statutory loss from writedowns on the value of acquisitions.
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.
Public relations business Hotwire continued to navigate technology headwinds.
Net revenue in the Technology, Healthcare and Consumer Practice fell 4% to $143.5 million.
OBMedia's net revenue dropped 8% to $46.2 million.
Enero posted a statutory net loss after tax of $44.2 million, including a non-cash impairment charge of $70.8 million relating to acquisitions: B2B sales and marketing agency ROI DNA; and specialist B2B technology marketing agency GetIT.
The company, keeping tight control on costs, reports trading for July "broadly consistent" with the end of the June quarter.
“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 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.”
The company declared a final fully franked dividend of 2 cents per share.
The year to June 2024 numbers:
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