Shares in media monitoring group iSentia dropped hard after a profit warning on its content marketing unit.
A short time ago, the shares were down more than 30%. Here’s what that looks like:
The company posted a 82.5% rise in profit to $18.74 million for the six months to December. Revenue was up 5% to $79.65 million.
However, the company says its content marketing unit’s performance was disappointing, with revenue falling 11% and an EBITDA (earnings before interest, tax, depreciation and amortization) loss of $2 million.
“We have made a number of improvements to the content marketing business including appointing Matt Stanton as the new CEO,” says CEO John Croll.
He says previous guidance for EBITDA break even for content marketing in 2017 won’t be achieved. It is now expected to post a loss of $3 million.
“While I am disappointed in the result, importantly we have a number of initiatives underway to improve execution and grow the business,” says Croll.
The company bought King Content in 2015 from founder and CEO Craig Hodges. The deal was worth $48 million, depending on hitting a number of targets over five years.
In 2016, content marketing represented 7% of iSentia’s earnings but the business lost revenue momentum due to poor decisions on strategy, business development and client retention.
Overall, the company expects its Australia and New Zealand and Asia business to deliver mid to high single digit revenue growth and low single digit range EBITDA growth.
iSentia’s half year numbers: