Isentia reports earnings fall as CEO Ed Harrison prepares for business transformation
Media monitoring and intelligence company Isentia has reported an earnings before tax decline of almost $13m in the 12 months to June, as new boss Ed Harrison insisted the company had a strong future.
The firm this morning reported an EDITDA of $28.6m, down from $41.5m in FY17.
While its media intelligence division reported an EBITDA of $33.1, the exit from its calamitous dabble with content marketing – through the acquisition in 2016 of King Content – cost the business $4.5m.
Revenue hit $137.1m, down from $155.1.
Managing director and chief executive Ed Harrison, who joined the company earlier this month after long-standing boss John Croll stepped down last February, said Isentia had the right credentials to transform the business.
“Isentia has a strong brand, premium products and an enviable customer base and these factors are a great starting point for transformation,” he said. “Since joining Isentia, I have been impressed with the appetite for change and recognition of the challenges within the business.”
He said Isentia was focused on a number of strategic initiatives as it looked to “respond to market changes and prepare for long term transformation”.
Isentia CEO Ed Harrison says he’s impressed by the company workforce’s attitude to change
Among the objectives is an $11m cost cutting plan to be completed by the end of the 2020 financial year and the restructuring of its sales and account management team in a bid to improve productivity and build closer ties with customers.
Isentia will also started proceedings in the Copyright Tribunal to obtain an “industry-based licensing agreement to ensure a level playing field for all participants”.
Chairman Doug Snedden said: “Despite recent challenges we have an incredible franchise across the Asia Pacific region which we are leveraging to address the shifting market realities.
“Our focus is on stabilising the competitive situation in ANZ and growing our business in Asia. With 79% of revenue recurring, the cash flow generation of our subscription model and conservative balance sheet remain key strengths as we move forward.”
Isentia forecast revenue in the current financial year of mid $120m with EBITDA in the low to mid $20m range.
