Frank and Hotwire parent company reports two per cent growth in UK and Europe

Enero’s UK and European businesses – largely Frank and Hotwire – have grown half-yearly revenues in the final six months of 2020. Other regions reported higher growth.

In the UK and Europe, Enero reported a two per cent revenue increase to A$19.4m (£10.9m) in H1 FY21, which included a “strong first half” for Hotwire and “maintained revenue” for Frank compared to the same period of the previous year.

The operating EBITDA margin for the group in the region improved from 14.2 per cent in H1 FY20 to 22.7 per cent in H1 FY21.

Enero said the Hotwire’s performance was partly due to its focus on technology clients.

“Enterprise technology clients continue to require sophisticated communication strategy and advice. New client wins include Klarna, Kindle, Trade Republic and Snapchat,” the holding company said.

Commenting on Frank, Enero reported: “Frank, also impacted by economic challenges relating to the pandemic, maintained revenue consistent year on year, with a lower operating cost base resulting in higher margin.

“COVID-19-related government programmes in the UK and Europe have not materially changed results for the businesses.”

Global results

The UK and Europe was the poorest-performing region for the Australia-headquartered holding group.

In the US, revenue was up 57.2 per cent to A$28.9m, largely due to strong growth in its programmatic marketing agency OB Media. Hotwire’s US business “remained stable” and added clients including Zoom, eBay Corporate, Procore and Desktop Metal.

In Australia, revenue was up 6.6 per cent to A$32.7m. Frank and Hotwire have small offices in this market.

Globally, the group increased year-on-year half yearly revenue by 19 per cent to A$81m, while operating EBITDA increased 95 per cent to A$28m.

The group's top 10 clients globally represent 47 per cent of revenue and the highest growth sectors were healthcare and IT.

Enero Group chief executive Brent Scrimshaw said: “The group delivered an excellent performance in the first half of the year, with all agency brands exceeding expectations despite the obvious challenging health and economic environments faced in all of our key geographies. 

“While there was also some benefit received from an operating cost perspective due to travel restrictions, this is a result to be proud of, and I want to acknowledge the incredible efforts from all our brands and their teams during this period.”

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