Isentia’s woes continue in face of declining spend and increased competition

The woes of media intelligence group Isentia have deepened, with the ASX-listed company reporting a $22m operating loss for the first half of the 2019 financial year.

Isentia, last year’s worst performer among ASX-listed media and marketing companies, reported EBITDA moving from a $11.4m surplus last year to a $12.8m loss this year.

The company’s Australia and New Zealand operations saw a 10% fall compared to the previous year, to $44.7m.

Despite the income fall and the restructuring of the business under former Yahoo Australia boss Ed Harrison, who appointed as CEO last September, the group’s operating costs only fell 0.3% to $51.2m.

Isentia boss Ed Harrison

In a statement to the ASX, Isentia’s directors said: “ANZ revenue declined compared to previous period due to lower SaaS sales reflecting macro media trends (lower press and broadcast volumes) and increased competition (price erosion and customer churn). However, ANZ Value Added Services (‘VAS’) revenue proved resilient despite a reduction in the SaaS base of ANZ.

“Asia revenue was marginally higher compared to the previous period due to growth in SaaS revenue. Mid to high single digit revenue growth in South East Asia was offset by a disappointing performance in North Asia.”

The group also impaired $22.25m of previously recognised intangible assets, including $18.9m in goodwill and wrote off $2.9m of its internally developed software platforms.


Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.



Sign up to our free daily update to get the latest in media and marketing.