Australia's Enero Group slumps on reduced traffic at top segment

Enero

08/06/2023 03:59

** Shares of marketing services provider Enero Group
 EGG.AX  fall as much as 12.1% to A$1.525, their lowest level
since Oct 2020
    ** Co expects Creative Technology and Data (CTD), its top
revenue-generating segment, to bring revenue between A$51 mln
($34.00 mln) and A$53 mln in 2H23, a climb of nearly 12% 
    ** However, growth rate is lower than anticipated due to
reduced traffic in advertising technology platform OBMedia, part
of CTD
    ** Sees CTD EBITDA margins in high-50s in 2H23 vs 63% in
1H23
    ** OBMedia reduced traffic purchases from certain publishes
in 2H23 to maintain quality metrics, affecting revenue - largest
impact expected in 4Q23
    ** Co expects FY23 group net revenue to grow up to 26% to
between A$241 mln and A$244 mln
    ** EGG marks its worst intraday drop since Feb 20; top
percentage loser in the ASX All Ordinaries index  EGG.AX 
    ** EGG stock down 38.5% this year, as of last close

      ($1 = 1.5002 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))