Enero Group has sold its stake in OBMedia, taking a non-cash loss, while projecting EBITDA at the top of its FY25 guidance, driven by its core marketing agencies.
- Sale of 51% stake in OBMedia to minority shareholders for nominal amount
- Non-cash loss on sale estimated between A$14 million and A$16 million
- FY25 EBITDA expected at upper end of guidance range ($22M-$26M underlying)
- Focus sharpened on three core agencies – Hotwire Global, BMF, and Orchard
- Strong operational improvements and new client wins underpin positive outlook
Strategic Divestment of OBMedia
Enero Group Limited (ASX – EGG) has announced the sale of its 51% stake in the AdTech business OBMedia, transferring ownership to the existing minority shareholders. The transaction, completed for a nominal amount, will result in a non-cash loss estimated between A$14 million and A$16 million in the FY25 financial statements. This move aligns with Enero’s strategy to concentrate on its core marketing and communications agencies where it sees stronger growth potential and differentiation.
Refocusing on Core Agencies
Ian Ball, Enero’s Chief Operating Officer, emphasized the company’s renewed focus on its three specialist agencies – Hotwire Global, BMF, and Orchard. Each agency boasts strong leadership and a proven track record of delivering high-impact results for clients. By divesting OBMedia, Enero aims to streamline its portfolio and invest resources into these high-performing units, which are seen as the primary drivers of future value creation.
Positive FY25 Financial Outlook
Despite the non-cash loss from the OBMedia sale, Enero is optimistic about its FY25 financial performance. The company expects to deliver EBITDA at the upper end of its previously guided range, between A$22 million and A$26 million on an underlying basis. This confidence is underpinned by new client acquisitions within its Australian agencies, disciplined cost management, and enhanced operational efficiencies across the group.
Looking Ahead
With the FY25 results announcement scheduled for 29 August 2025, Enero plans to provide further financial details on each agency’s performance. The company’s leadership is committed to leveraging its refined portfolio to drive growth, attract top talent, and deliver strong shareholder returns. The strategic divestment and operational improvements position Enero to capitalize on emerging opportunities in the competitive marketing and communications landscape.
Bottom Line?
Enero’s pivot away from AdTech toward its core agencies sets the stage for focused growth and shareholder value in FY26 and beyond.
Questions in the middle?
- How will the divestment impact Enero’s cash flow and capital allocation going forward?
- What specific growth initiatives are planned for Hotwire Global, BMF, and Orchard?
- Could Enero consider further portfolio adjustments to sharpen its market positioning?