Another great result

FY 22 are in line with the indications that they gave at the beginning of June, regarding revenues and operating EBITDA.
Revenues increased by 20 % (vs + 15 % for H1) and operating EBITDA increased by 36 % (vs + 23 % for H1).

New elements :
- EPS H2 increased by 38 % after + 2 % during H1,
- free cash flow (after Capex and lease liabilities) continue to be high at 42 m for FY 22 (vs a market cap of 303 m and an EV of 260 m),
(free cash flow remains a bit biased for this company as it includes large minority interests.
This is why I look at the free cash flow excluding minority interests which is 25.2 m and still represents a free cash flow yield of 9.7 %).
- unlike H1, the final dividend had a large increase of 48 % (- 43 % for interim dividend).

Once again, these results are driven by OB Media which sales increased by 63 % and operating EBITDA increased by 68 % in FY 22.
So, their 51 % in OB Media represented 55 % of Enero operating EBITDA (excluding the minority interests of OB Media).

The main surprise with Enero remains its valuation :
- PE 22 of 10.7
- yield of 3.8 %
- EV/EBITDA of 6.4
- free cash flow yield of 9.7 %.

This valuation does not discount much growth, while several elements show that the company is expected to continue to show a good level of growth :
- cf their comment so far for FY 23 which shows that there is no slowdown for their growth,
- the dividend growth which shows that the company remains optimistic about future growth.

One mystery remains why Enero is hiding so much about OB Media, while it remains the most valuable part of its business.