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Isentia Asia profit plummets as global CEO John Croll resigns

After a troubled year that saw the closure of its content marketing business and two global offices, Isentia has posted a significant profit decline within its Asia business.

 

The media monitoring company, which has closed its offices in Hong Kong and New York and later axed its King Content business, saw operating profit outside of Australia sink from AU$2.8 million in 2016 to just AU$1m this year.

The update posted on the Australian Securities Exchange also announced the departure of chief executive officer John Croll, whose exit comes a year the company wrote off its disastrous $35m+ investment in branded content agency King Content.

In a statement posted to the ASX, Croll said: “After almost 20 years as CEO, I believe it is time for a change. I have been incredibly privileged to lead the talented and dedicated team at Isentia.”

According to the half year update, Asia’s revenue has largely flattened out due to low software services sales and a significant decline in revenue from the now-defunct content arm.

However, the Asian market saw an uplift in revenue from its media monitoring and consultancy arm, rising from AU$8m in 2016 to AU$9.5 in 2017.

In total, the Singapore and London offices posted AU$19m in revenue for 2017, a small dip from AU$19.8m in 2016. Globally, revenue fell by almost AU$10m, giving a final figure of AU$70m for last year.

Croll will remain with Isentia for the next six months while the company looks for a replacement.

CEO John Croll said it is time for a change

He was the last remaining member of the management team involved in the King Content acquisition. Chairman Doug Flynn retired from the board late last year and chief financial officer Nimesh Shah quit last March.

In October last year Croll said he was still the right person to lead the business despite the company’s share price collapse which saw the value of the business drop by 40%.

A month prior, the CEO had insisted the company didn’t over pay for King Content.

In its financial results, Isentia flagged it would be making a round of cuts amounting to savings of $5-7m.

The announcement:

Isentia announces resignation of managing director and chief executive officer

Isentia Group Limited (ASX:ISD) today announced the resignation of its managing director and chief executive officer John Croll.

Mr Croll has given six months notice so that an orderly transition can occur and the Board is going to undertake a global search for his replacement.

Mr Croll said: “After almost 20 years as CEO, I believe it is time for a change. I have been incredibly privileged to lead the talented and dedicated team at Isentia. Over the next six months I will continue to focus on implementing strategic initiatives that will improve the performance of our media intelligence business.”

Mr Doug Snedden, Isentia’s chairman said: “The Board recognises the significant contribution John has made to establishing Isentia as the market leader in media intelligence in the Asia Pacific region.

“John will continue to lead the company with the support and assistance of the Board until a successor is appointed. We appreciate John’s ongoing commitment to Isentia as the notice period will ensure a smooth transition to a new CEO. An external search for a replacement will commence immediately.”

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