Hotwire owner Enero reports 14% rise in full-year organic revenue

Net revenue at the Australia-based Enero Group rose 18.3 per cent to A$160.6m and operating EBITDA grew 87.1 per cent to A$45.6m. Underlying net profit after tax was A$22.8m, up 76.7 per cent on the prior year.

The firm said Hotwire recorded "positive momentum with key client wins and organic growth in [its] existing strong technology client base".

Enero, which hired chief executive Brent Scrimshaw on 1 July 2020, said it achieved "strong results across all three geographic regions".

Its UK/Europe operations recorded a 5.8 per cent fall in net revenue, attributed to currency headwinds and the sale of Frank PR via an MBO. Adjusting for the Frank sale, and the contribution from McDonald Butler Associates – the UK b2b sales and marketing agency acquired in April 2021 – net revenue growth in the region on a constant currency basis was 7.5 per cent. Operating EBITDA grew 33 per cent, with Enero citing "stable expenses due to COVID-19-related discretionary cost savings".

In the US it delivered a 52 per cent increase in net revenue and a 146 per cent rise in operating EBITDA. Enero said the global acceleration in technology adoption and industry transformation provided a strong benefit to the US business.

Hotwire’s "solid" performance in the US was "supported by its strong technology client base, and COVID-19-related operational savings". "The business invested in its strategy and digital skillsets to enhance its integrated solutions for clients, finishing the year with pleasing momentum in new client wins including Pinterest, Klarna and Cloudera."

Net revenue in Australia rose 11 per cent, with EBITDA up 13 per cent; Enero cited strong trading at agencies BMF and Orchard.

The group said the first six weeks of its current financial year "continue to deliver strong year-on-year revenue momentum".

Scrimshaw said: “It is pleasing to see Enero Group’s progress in the last 12 months as we have accelerated the sustainable growth opportunities available to us around the globe. It has been our utmost priority to establish a new operating framework, supported by our new executive leadership team, strong culture and diverse talent pool, to deliver on that growth vision. Client expectations are changing in today’s world, and Enero is delivering new solutions that drive smarter and more effective outcomes.

“We have also implemented a new framework for investment that has already resulted in the acquisition of McDonald Butler Associates in the UK. We now have a structure and dedicated leadership that will support our future M&A.

“It is particularly encouraging to see these efforts translating into Enero’s strong performance for the year. Our diversified client portfolio has delivered EBITDA growth in every region and business, and is well-positioned for the future.”