- Isentia full year revenue down 11.6% to $137.1 million.
- And guidance for 2019 is for low to mid $120 million.
- No dividends.
Revenue at Isentia fell 11.6% to $137.14 million in the year to June as competition in the media monitoring industry intensified.
The company lifted statutory profit by 109.5% to $1.28 million but cancelled dividends in favour of investing in product.
Media intelligence revenue fell to $132.6 from $140.8 million with more shrinkage on the way.
Isentia gave 2019 revenue guidance in the low to mid $120 million, assuming copyright costs in Australia remain stable although expectations are that these may be reduced.
At the close, Isentia shares were down 44% to $0.45.
The company has now completed its exit from content marketing.
“Despite the recent challenges, we have an incredible franchise across the Asia-Pacific region which we are leveraging to address the shifting market realities,” says Isentia Chairman Doug Snedden
“Our focus is on stabilising the competitive situation in ANZ and growing our business in Asia.
“With 79% of revenue recurring, the cash flow generation of our subscription model and conservative balance sheet remain key strengths as we move forward.”
Incoming Managing Director and CEO Ed Harrison says he’s focused on strategic initiatives to enable the company to respond quickly to market changes and prepare for a long term transformation.
These include a restructuring of sales and account management and annualised gross cost savings of almost $11 million by end the 2020 financial year.
“Isentia’s Board has decided not to pay a final dividend,” the company said. “The capital management decision was taken to conserve cash and provide greater investment flexibility for future growth with priorities including product development and debt reduction.”
The 2018 results in detail:
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