Enero Group (EGG) H1 2025 earnings summary

Executive summary

• Net revenue declined 12.1% year-over-year to A$88.3m in FY25 H1, reflecting challenging macroeconomic and AdTech market conditions and the sale of the CPR business.

• EBITDA fell 31.5% to A$15.7m, with margin down to 17.8%, partially offset by a 6.4% reduction in costs.

• Net profit attributable to equity owners dropped 51.9% to A$3.2m before significant items; after significant items, a net loss of A$0.8m was recorded.

• Interim dividend of 1.5 cents per share, fully franked, with a payout ratio of 42%, payable 11 April 2025.

• International markets contributed 66% of net revenue and 68% of EBITDA.

Financial highlights

• Statutory net loss after tax to equity owners was A$0.8m, a 93.4% improvement from FY24 H1 loss.

• Free cash flow was A$8.2m, down from A$16.9m in FY24 H1; cash conversion at 86% of EBITDA.

• Net cash position of A$42.4m as of December 2024; A$47.5m of A$50m bank facility undrawn.

• Significant items included A$2.6m restructuring costs and A$1.4m fair value adjustment.

• Statutory profit after tax was A$2.5m, compared to a A$7.3m loss in the prior year.

Outlook and guidance

• Macroeconomic and AdTech market headwinds expected to persist, with ongoing focus on cost management and operational efficiency.

• OBMedia remains a strategic priority, with operational changes underway to stabilize performance.

• No material or unusual events expected to affect future operations post balance date.