Enero Group (EGG) H1 2025 earnings summary

Executive summary

• Net revenue declined 12.1% year-over-year to $88.3 million for the half year ended 31 December 2024, reflecting challenging macroeconomic and AdTech market conditions and the sale of the CPR business.

• EBITDA fell 31.5% to $15.7 million, with margin down 5 percentage points to 17.8%, partially offset by a 6.4% reduction in expenses.

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

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

• Cost management initiatives and expense reductions partially offset revenue declines, supporting sequential margin improvement.

Financial highlights

• Net revenue: $88.3 million (down from $100.4 million year-over-year); EBITDA: $15.7 million (down from $23.0 million year-over-year).

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

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

• Net cash position of $42.4 million as of December 2024, with $47.5 million of $50 million bank facility undrawn.

• Significant items included $2.6 million restructuring costs and $1.4 million fair value adjustment on contingent consideration.

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 and ongoing negotiations to divest a 51% interest.

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