‘Mistakes cost us dearly’ Isentia boss admits, but business on the right track
Isentia CEO John Croll has admitted the company could have handled the acquisition of King Content last year in a better way after a shock slump in revenue for the division saw 26% carved from the company’s share price last week.
John Croll admits the company has paid a price for failing to see a revenue gap emerging
Speaking with Mumbrella, Croll said that a restructure of the content division and the realignment of the sales teams would result in an improved revenue outlook for the division in the coming year.
And the company is also poised to announce a new CEO within weeks after King Content founder Craig Hodges was elevated to the role of chairman ahead of him completing his earn-out next year.
Got so suckered
According to page 20 in Isentia’s FY15 results presentation and King Content announcement, Isentia paid 60% upfront (not 6% as the above article states). 60% of $48m is $28.8m in upfront payment. See following link: http://www.asx.com.au/asxpdf/2.....ch419d.pdf
Nice try by the CEO, but with the CEO going and revenue losing momentum, its a bit hard to argue you paid fairly for it.
King Content better turn around quick smart or it will be a weight on isentia’s back for a long time
Hi ASX,
It was 60 not 6%, that was a slip of the keyboard but amended now.
Cheers,
Alex – editor, Mumbrella
At least they’re fronting up and explaining the situation.
Attention all King Content customers – “getting a really good margin for that business.”
@Trying – they are obliged to, they are a public company.
So the emperor has no clothes