Isentia shares smashed as content division reports revenue drop for first half
Shares in Isentia plummeted by 26% on Thursday after the company revealed King Content, which it acquired for $48m a year ago, projected a loss of $2m for the division in the first half the 2017 financial year.
The media monitoring and content business has also announced it has begun searching for a replacement for former King Content founder and CEO, Craig Hodges, who has been named executive chairman, with Isentia CEO John Croll blaming strategic decisions made in the division for a “loss of momentum”.
The market savaged Isentia shares following the announcement, despite the company reporting a 23% year-on-year revenue increase to $156m, with an underlying net profit after tax up 16% to $33m.
Shares dropped from Wednesday night”s close of $3.25 to finish at $2.38 at the close of trade on Thursday after the market update was delivered at the AGM.
Unbelievable, always thought the King Content story was too good to be true. Isentia were suckered
Ahhhhh…..first Brand New Media, now King Content. Common themes being seen here.
Who did the due diligence on that deal?!? Must be hiding in a hole somewhere…