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Highlights
- Enero is a ASX company firm which markets communication services
- In FY23, the company delivered 24.92% YoY rise in revenue to AUD 241.6 million
- EGG shares closed 1.23% up at AUD 1.64 apiece on Monday
Enero group Limited (ASX:EGG) is an ASX-listed firm that offers portfolio management services in the field of marketing, technology and communications business. The core business activities of EGG are communication services and integrated marketing, comprising public relations, advertising, market research and insights.
The AUD 148.43 million market cap firm registered 24.92% YoY rise in net revenue at AUD 241.6 million in the financial year 2023 (FY23). In the stated period, EBITDA increased by 19% YoY to AUD 78.8 million, backed by revenue growth and strict cost control.
Revenue growth of the company was supported by the 31% YoY growth in net revenue from the creative technology and data segment business. Moreover, 31% of the total revenue came from those customers who have associations with more than one EGG brand.
Recent business update
Through an ASX filing dated 15 November 2023, the company informed that Bank of America and its associated corporate bodies have become a substantial holder in the group with a shareholding of 5.01% on 13 November 2023.
Through an ASX update dated 31 October 2023, the company shared that it has sold the public affair agency, CPR Communications and Public relations to the Civic Partnership to optimize its portfolio of complementary services and brands globally. In FY23, CPR contributed AUD 2.7 million in the company’s total revenue. With this transaction, the company will recognize a loss of around AUD 2.5 million – AUD 2.7 million, before taking into consideration the income tax impact.
FY24 Outlook
OBMedia is expected to grow from its recent rebased trading and EBITDA margins are expected to be in the range of 55%-56%.
The company’s revenue fell by 8% annually in July because of delays in spending and client reorganizations, especially in the technology segment. During the same period, the revenue from Orchard and BMF, health and consumer agencies zoomed by 4% YoY.
In the first half of FY24, the company expects to see increased margins in agencies due to cost initiatives taken in FY23 and ongoing focus on profitability.Also, the company believes AI integration would position the business for future growth.
Share performance of EGG
EGG shares closed 1.23% up at AUD 1.64 apiece on 20 November 2023. With this gain, EGG’s share price has dropped by 45.33% in the last one year and has declined by 3.53% in the last six months.
The 52-week high of EGG is AUD 3.16, recorded on 30 January 2023, and the 52-week low is AUD 1.335, recorded on 26 July 2023.
EGG Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 20 November 2023. The reference data in this report has been partly sourced from EODHD/Others.
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