Full Year 2024 Enero Group Ltd Earnings Call Transcript
Key Points
- Enero Group Ltd (ASX:EGG) delivered a net profit after tax growth of 7% on a like-for-like basis, driven by lower interest expenses and stronger earnings in wholly owned businesses.
- The company reported an 8% growth in earnings per share on a like-for-like basis.
- Enero Group Ltd (ASX:EGG) achieved a strong cash conversion rate of 88%, allowing for continued share buybacks and loan repayments.
- The Australian-based agencies, BMF and Orchard, showed strong performance with revenue growth and improved EBITDA margins despite inflationary pressures.
- The company has expanded its roster of blue-chip clients, including significant wins like the Endeavour Group, enhancing its client base and revenue potential.
- Net revenue decreased by 6% on a like-for-like basis, with EBITDA declining by 10%.
- OBMedia, a significant part of the business, experienced an 8% revenue decrease and a 17% decline in EBITDA on a like-for-like basis.
- The technology sector, particularly the Hotwire Group, faced ongoing challenges due to global market conditions, impacting overall performance.
- Enero Group Ltd (ASX:EGG) recognized a statutory loss of $44.2 million due to significant impairment losses related to ROI DNA and GetIT intangibles.
- The OBMedia sale process faced setbacks, with negotiations failing to finalize terms with a preferred bidder, prolonging uncertainty.
Thank you for standing by, and welcome to the Enero Group Limited FY '24 Full Year Results Call. (Operator Instructions)
I would now like to hand the conference over to Mr. Brent Scrimshaw, Enero Group CEO. Please go ahead.
Well, good morning, and thank you for joining CFO Carla Webb-Sear and myself for the Enero Group Full Year 2024 Results Conference Call. I'd like to begin by acknowledging the traditional custodians of the land on which we work, the Gadigal People of the Eora Nation, and pay our respects to their elders past, present and emerging. The agenda for today is outlined on slide 2.
I'll first provide an overview of Enero's FY '24 business performance highlights, drivers and metrics. Carla is then going to take you through the group financials, and I'll then also provide some insight into the continued evolution of our strategy and, importantly, our progress against it, along with an outlook commentary. We then, of course, as always, look forward to taking your
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