Enero Group (EGG) investor relations material

Executive summary

• EBITDA grew 9% year-over-year, with adjusted net profit and EPS up 54%, despite a 7% decline in net revenue, driven by disciplined cost management and operational excellence, and record performance from Australian agencies.

• Statutory net loss after tax of AUD 37.4 million due to significant non-cash impairment and write-downs, mainly related to ROI-DNA.

• Fully franked final dividend of AUD 0.014 per share declared, representing a 31% payout ratio on adjusted EPS.

• Robust net cash position of AUD 24.5 million at year-end, with zero leverage and significant undrawn loan facility.

• Strong performance in Australian agencies offset challenges in international technology markets and ongoing transformation at Hotwire.

Financial highlights

• Net revenue from continuing operations declined 7% year-over-year to AUD 129.5 million, impacted by challenging international technology markets and unfavorable USD exchange rates.

• EBITDA increased to AUD 15.3 million (up 9%), with margin improving from 10.2% to 11.8%.

• Adjusted net profit after tax rose to AUD 6.4 million, and adjusted EPS to 7.0 cents, both up 54%.

• Free cash flow increased to AUD 1.1 million from AUD 0.6 million last year.

• Dividend per share decreased 14% to 2.4 cents.

Outlook and guidance

• Hotwire and ROI-DNA expect a 30%-50% revenue reduction in FY27 due to AI disruption and client insourcing, with swift restructuring to protect EBITDA.

• BMF anticipates FY27 revenue 10-15% below FY26 H2 average, but expects margin improvement from AI adoption and cost base transformation.

• Orchard expects continued strong growth and geographic expansion, especially in healthcare and consumer sectors, with further efficiencies from its AI-led model.

• Corporate functions will continue AI-driven efficiency initiatives to maintain a low cost base.

• Corporate costs to remain flat, with normalization of share-based payments expected in FY27.