Isentia has revealed plans to wind down its content marketing business, formerly known as King Content, by the end of 2017. Reported on ASX, this was due to its continued underperformance, following close monitoring and reviews by management of the content marketing business.
Marketing has reached out to Isentia for comment.
The company now plans to shift its focus back to its core operating business. According to the business and financial year 2017 trading update on the Australian Stock Exchange, MD and CEO of Isentia John Croll (pictured) said the management "will ensure a smooth and orderly transition for clients and employees" regarding the decision to exit the content marketing business.
This announcement comes two months after Isentia discontinued the King Content name, which resulted in the closing of King Content's offices in Hong Kong and New York. Meanwhile, US clients are serviced out of its UK office, while clients in Hong Kong will be serviced out of Singapore. The Singapore office was not affected.
It also follows the exit of global strategy director and GM of Singapore Hedvig Lyche, who announced her departure from King Content after more than three years with the company, to start her content firm. In a conversation with Marketing, Lyche said she stayed on after the acquisition of King Content by Isentia to ensure stability and consistency within the team during the restructure.
Meanwhile, the company's overall revenue dropped by "a mid-single-digit percentage basis" compared to the previous calendar period. Trading conditions during the first quarter of the 2018 financial year have been mixed as Isentia continues to react to the revenue pressures that emerged from higher customer turnover in the first half of 2017, which flowed through to the second half of the year.
To address customer turnover and revenue growth, Isentia's management has reorganised the sales team to focus on customer retention and growth. It has also renewed focus on its premium products in a bid to continue being an industry leader. The Asia Pacific business is also focused on improving organic revenue growth in the market. Isentia's management has started a "thorough review" of the cost structure needed to support its core business across media intelligence and insights.
“The decisions by board and management today have been made with the key objective of supporting the core operating business that continues to generate strong recurring cash flows servicing a deep pool of high quality subscription clients across our markets. Our sales force reorganisation is delivering good results across client retention, and during a transition year for the business our focus is on initiatives to maintain our market leadership position in business media intelligence and insights," Croll added.
Isentia has also reached a settlement with Meltwater, which concerned the latter's use of Isentia's services and claims under Australian Consumer Law.