Isentia Calls Time On King Content, Lowers Profit Expectations for FY17

Isentia Calls Time On King Content, Lowers Profit Expectations for FY17
SHARE
THIS


What best describes you?

ASX-listed media intelligence provider Isentia has announced it will axe the King Content brand after acquiring it nearly two years ago for $48 million.

In a market update this morning, Isentia revealed that the board has decided to fully write down the value of the content marketing arm due to its poor financial performance during the last financial year.

King Content is expected to report $14.2 million in revenue for FY17 (down 30 per cent year on year) and an EBITDA loss of $4.4 million (compared with an EBITDA profit of $3.6 million in FY16).

Isentia said it expects the writedown of King Content to result in an impairment charge of $37.8 million in FY17.

“The King Content brand is being discontinued and its operations fully integrated into Isentia under the Isentia brand,” the update said.

“We have closed the King Content New York and Hong Kong offices, and will continue to service our US clients out of the UK and our Hong Kong clients out of Singapore. We have further cut the ongoing headcount in the content marketing business.”

The market update also revealed that Isentia will report lower revenues and profits than it anticipated previously for FY17 in May.

The company has downgraded its revenue forecast from $162 million to 155.1 million, while underlying profits are expected to total $41.5m instead of $44 million.

Isentia noted that the revised expectations are partly due to a $500,000 impact from a “bad debt clean-up in Asia”.

John Croll, CEO of Isentia, described the market update as “disappointing”, but assured shareholders that the company has put in place a number of initiatives to improve operating performance across the business.

“The challenging competitive environment we faced in FY17 H1 has improved, with Isentia winning back 50 clients net from our competitors in Australia in FY17 H2,” he said.

“Our focus now is on leveraging our core business where we have a significant market share, and enhancing and broadening our products as we deliver the most comprehensive media intelligence and insights to our customers in FY18.”

Please login with linkedin to comment

Latest News

Four Questions About Connected TVs Everyone Is Asking – Answered
  • Opinion

Four Questions About Connected TVs Everyone Is Asking – Answered

In this guest post, the ANZ country manager for martceh firm dataxu, Matthew Joyce (pictured below), says almost half of Australians have a connected TV and he takes a look at what that means for brands and advertisers… Four in 10 of us have smart TVs at home, and of that, 70 per per cent are Connected TVs (CTV). […]

Opinion

by B&T Magazine

B&T Magazine
TV Production Firm Crocmedia Hires Nine’s Tim Cleary For New Venture
  • Media

TV Production Firm Crocmedia Hires Nine’s Tim Cleary For New Venture

Crocmedia has announced the launch of Rainmaker, a dedicated TV production services business to be headed by former Head of Programming and Production at Channel Nine, Tim Cleary. Cleary will draw on his 25 years in the industry to spearhead the creation of bespoke new shows for distribution both in Australia and overseas under the Rainmaker […]

The Advertising ID Consortium Welcomes New Platform Partners
  • Advertising

The Advertising ID Consortium Welcomes New Platform Partners

The Advertising ID Consortium – the open identity solution for the digital advertising ecosystem – has announced new platform partners. Since the Consortium’s announcement in May 2017, the founding members have established a governance framework and product specification that includes an open and standardised cookie and accessible people-based identifiers, delivered in a secure, privacy conscious […]

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand
  • Marketing

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand

Australian in-store music provider Marketing Melodies has announced an exclusive reseller agreement with Spotify-backed Soundtrack Your Brand for the Australia and New Zealand markets. Founded in Sweden in 2013, Soundtrack Your Brand was developed to kill bad background music. Its flagship solution, Soundtrack Business, is a music streaming platform licensed for commercial and public spaces. The […]

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia
  • Advertising
  • Marketing

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia

Customer acquisition firm Social Garden has become the first business in Australia to achieve Bronze status on Snapchat. Among the new benefits Social Garden will receive as a result of its Bronze status is access to beta versions of Snapchat data tools, such as the Snapchat Conversion Pixel, as well as being among the first […]

Hypetap Appoints Nuffnang’s Chris Morfis As GM
  • Marketing

Hypetap Appoints Nuffnang’s Chris Morfis As GM

Influencer marketing player Hypetap has made its second senior hire in less than a month, appointing Chris Morfis as the company’s general manager. Joining from influencer marketing provider Nuffnang Australia, Morfis will guide Hypetap’s growing team, providing strategic direction to accelerate the company’s growth, as well as leading operations and managing relationships with key partners. Morfis’ appointment will […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]