Isentia shares smashed as content division reports revenue drop for first half

November 17, 2016 6:31

Shares in Isentia plummeted by 26% on Thursday after the company revealed King Content, which it acquired for $48m a year ago, projected a loss of $2m for the division in the first half the 2017 financial year.

The media monitoring and content business has also announced it has begun searching for a replacement for former King Content founder and CEO, Craig Hodges, who has been named executive chairman, with Isentia CEO John Croll blaming strategic decisions made in the division for a “loss of momentum”.

The market savaged Isentia shares following the announcement, despite the company reporting a 23% year-on-year revenue increase to $156m, with an underlying net profit after tax up 16% to $33m.

Shares dropped from Wednesday night”s close of $3.25 to finish at $2.38 at the close of trade on Thursday after the market update was delivered at the AGM.

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Simon Canning

Simon Canning was Mumbrella's marketing and advertising editor from 2015-2017. In a career spanning journalism and communications over more than 30 years Simon has become one of Australia’s most respected analysts and commentators on the advertising, marketing and media industries. A regular commentator on radio and TV, Simon has also worked in media in the US and UK .

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3 COMMENTS

AJ 18 Nov 16

Unbelievable, always thought the King Content story was too good to be true. Isentia were suckered

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Heather 18 Nov 16

Ahhhhh…..first Brand New Media, now King Content. Common themes being seen here.

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Jon 18 Nov 16

Who did the due diligence on that deal?!? Must be hiding in a hole somewhere…

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Isentia shares smashed as content division reports revenue drop for first half

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