Financial performance for the year The Group achieved Net Revenue of $135.8 million, an increase of 4.9% (2019: $129.5 million) compared to the prior reporting period. The increased revenue was driven by organic revenue growth in Hotwire, Orchard and OBMedia predominantly in the USA market.
Increased revenue pipelineconversion uncertainty due to COVID-19 led to a greater weighting to existing client and organic revenue opportunities over new business opportunities.
The Group has a high sector exposure to technology, healthcare and consumer staples clients, which were less impacted by COVID-19, and a low sector exposure to retail, travel & tourism clients, which were more heavily impacted in the second half of the year.
The Group achieved Operating EBITDA of $24.4 million, an increase of 17.7% (2019: $20.7 million) compared to the prior reporting period as a result of the increased net revenue, careful cost management and reduction of operating costs during COVID-19. The Operating EBITDA margin increased from 16.0% in 2019 to 18.0% in 2020.
The increased net revenue coupled with stronger operating costs leverage resulted in the margin protection and expansion. Government related support during Covid-19 including the Jobkeeper subsidy was limited to $0.4m in contribution to Operating EBITDA in the current year.
The net profit pre-significant items was $12.9 million, compared to $12.1 million in the prior reporting period. The net profit after tax to equity owners was $10.7 million, compared to $5.7 million in the prior reporting period.
In the current year, the Operating Brands segment generated approximately 57% of its net revenue and 62% of its Operating EBITDA from international markets.
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