As expected, media intelligence company Isentia has fallen into the red for FY17, with the writedown of its content marketing arm a big factor in the company’s full-year results.
Isentia saw profits fall 24 per cent to $24.7 million in the 12 months to 30 June 2017, largely due to a $39.4 million writedown of its King Content business.
The company announced it would axe the King Content brand earlier this month due to its recent poor financial performance, after acquiring it over two years ago for $48 million.
Revenue for Isentia’s content marketing division fell 30 per cent to $14.4 million over the 12-month period, while overall revenue was down 1 per cent to $155.1 million.
Isentia’s expenses before interest, tax, depreciation and amortisation (EBITDA) dropped 19 per cent to $41.5 million.
In a statement to shareholders, Isentia CEO John Croll admitted that FY17 was a “disappointing” year, with the business performing below expectations, particularly at King Content.
“The board and management remain confident in the market positioning of Isentia and we have implemented initiatives to improve performance across the business,” he said.