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Isentia CEO quits after "challenging" half

AAP  |  27 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Isenita (ASX: ISD) chief executive John Croll has quit his position on the same day the media monitoring group announced a $4 million half-year loss.

Mr Croll's near-20-year term as CEO of the group ends as the company faces shrinking revenue in its core media intelligence business, down 7.1 per cent as pricing pressure and lower volumes hit its Australia and New Zealand arm.

Isentia's group revenue, which includes its operations in Asia, suffered an 11 per cent contraction in the six months to December 31 to $70.8 million and the $4 million half-year loss was a sharp reversal from an $18.7 million profit for the previous corresponding period.

The veteran CEO and managing director's exit comes after Isentia was last year forced to shut down content marketing business King Content, which it bought in August 2015, in a $48 million deal.

In a statement to the ASX on Monday, Mr Croll said it was "time for a change".

Mr Croll has given six months notice to enable an orderly transition, with the Isentia board to start a global search for his replacement.

Chairman Doug Snedden said the Isentia board "recognises the significant contribution John has made to establishing Isentia as the market leader in media intelligence in the Asia Pacific region".

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Isentia exited King Content in November, incurring an $11.9 million loss in the process.

Mr Croll said the first half of 2017/18 had been "a challenging six months".

"The exit from content marketing allows us to focus on improving the profitability of our media intelligence business," he said in a statement.

Isentia narrowed its full-year revenue guidance to $133m to $136m for its media intelligence business after excluding content marketing, from $133 million to $138 million previously.

The company maintained earnings guidance at $32 million to $36 million.

Isentia, which was known as Media Monitors prior to a 2013 rebrand, listed on the ASX in 2014 at an issue price of $2.04 per share.

The stock closed down 12 cents, or 9.9 per cent, at $1.09 on Monday.

BAD NEWS FOR ISENTIA'S FIRST HALF RESULT

* Net loss of $4m, down from $18.7 profit in previous first half

* Revenue of $70.8m, down 11.1pc

* Interim dividend of 0.647 cents per share, fully franked, down from 3.1 cents

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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