Media intelligence company Isentia can now call itself a profitable company again after swinging back into the black during the last financial year.
Isentia posted a net profit after tax (NPAT) of $1.3 million in the 12 months to 30 June 2018, compared to a $13.5 million loss in FY17.
However, the company suffered a 12 per cent drop in revenue during the last fiscal year to $137.1 million, primarily due to its Australian and New Zealand operations, which experienced a 14 per cent fall.
Isentia said its revenue was affected by “structural headwinds as traditional media volumes continued to fall, as well as an increasingly competitive landscape that led to higher customer churn and price erosion”.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) was down 31 per cent to $28.6 million in FY18.
Isentia’s exit from its content marketing business, King Content, resulted in an EBITDA loss of $4.5 million.
The company has decided not to pay a final dividend to conserve cash and provide greater investment flexibility for future growth, with priorities including product development and debt reduction.
Isentia chairman Doug Snedden said FY18 has been an important year for the company as it puts in place a restructuring agenda.
“Despite the recent challenges, we have an incredible franchise across the Asia-Pacific region which we are leveraging to address the shifting market realities,” he said.
“Our focus is on stabilising the competitive situation in ANZ and growing our business in Asia. With 79 per cent of revenue recurring, the cash flow generation of our subscription model and conservative balance sheet remain key strengths as we move forward.”
Incoming CEO and managing director Ed Harrison said: “I look forward to contributing to the next stage of Isentia’s journey as we adapt to an evolving marketplace.
“Isentia has a strong brand, premium products and an enviable customer base, and these factors are a great starting point for transformation.
“Since joining Isentia, I have been impressed by the appetite for change and recognition of the challenges within the business.”
Harrison said the company is focused on a number of strategic initiatives that will enable it to respond quickly to market changes and prepare for a long-term transformation that will drive future performance.
These include restructuring sales and account management teams, delivering annualised gross cost savings of almost $11 million by FY20, commencing proceedings in the Copyright Tribunal to obtain an industry-based licensing agreement.
Furthermore, Isentia plans to roll out its Mediaportal across Asia so that the platform is available for the first time in all markets, and wants to strengthen product development and innovation to meet market demand for differentiated customer services.
Please login with linkedin to commentiSentia
Liz Cambage, Australian basketball star, has taken to social media to criticise a lack of racial diversity in recent Australian Olympic Committee photoshoots, indicating she may boycott the Tokyo games. Cambage is a member of the Australian Opals basketball team, and has played in a number of elite leagues including the WNBL, where she played […]
Massachusetts state attorney Maura Healey has sued Publicis Health, a subsidiary of Publicis Groupe SA, over allegations of deceptive marketing. Healey argued that Publicis Health used unfair, deceptive marketing tactics to sell a powerful, addictive prescription painkiller called OxyContin on behalf of Purdue Pharma. According to the suit, “dangerous opioid drugs continue to kill hundreds […]
B&T’s Research Agency Of The Year, strategic insights consultancy Nature, was a big winner at the Research Society Awards last night, taking home four prestigious honours. Nature won the Research Effectiveness Award for Technology and Innovation for its work for Don KRC; Managing Partner Chris Crook (main photo) was accepted into the Research Society’s Fellowship; […]
Australasia’s leading independent creative company, Special Group, has been named the world’s best Creative and Independent Agency of the Year by one of the world’s most prestigious advertising titles – the United Kingdom’s Campaign. Special Group – which has offices in Sydney, Melbourne, Auckland and Los Angeles – was named Global Agency of the Year […]
The winners of Fast Company’s 2021 World Changing Ideas Awards have just been announced, honoring the businesses, policies, projects, and concepts that are actively engaged and deeply committed to pursuing innovation when it comes to solving health and climate crises, social injustice, or economic inequality. Losing Lena by Clemenger BBDO Sydney was a finalist in […]
Adland's future was on display at yesterday's Young Lions. Sadly, the B&T's editor's plumbers crack was also on display.
A highlight of Australia’s creative calendar, The Design Conference celebrates its 10th conference with a cracking line-up of 20+ speakers when it returns to Brisbane Powerhouse from Wednesday 16 – Friday 18 June 2021. Over the last ten years, The Design Conference has evolved into one of the world’s premier professional development opportunities at the […]
Sydney-based design studio Universal Favourite launched a new branding for US beauty brand Youthforia, whose mission is to make makeup more playful. To appeal to a Gen Z market bored by the minimal aesthetic approach adopted by most beauty brands, Universal Favourite created a maximalist identity. The result is purposefully messy, uncurated, raw.
APRA AMCOS, a music rights management organisation for Australian and New Zealand songwriters and music publishers, has engaged Klarrio to help modernise its IT architecture and accelerate its digital transformation journey. Klarrio, a systems integrator specialising in real-time data streaming and customised IT architecture modernisation, is helping APRA AMCOS migrate from an on-premise, single-threaded processing […]