Today, the iSentia Group Ltd (ASX: ISD) share price plunged by 10.20%, closing at 22 cents. This slide came after the company released its annual results for the 2020 financial year (FY20).
What was in the announcement?
iSentia reported revenue of $110.3 million in FY20, down $12.2 million compared to the 2019 financial year. According to the company, revenue growth in South East Asia was offset by declines in Australia and New Zealand, along with North Asia. iSentia stated that revenue in Australia and New Zealand was affected by competitive pressures.
The company posted net profit after tax before amortisation of -$4.9 million. According to iSentia, this loss was due to costs associated with the closure of its North Asia business.
iSentia revealed earnings before interest, tax, depreciation and amortisation (EBITDA) of $20.9 million in the 2020 financial year. EBITDA was down $2.2 million when compared to the 2019 financial year.
The company reduced its net debt by $3.7 million in FY20, with net debt standing at $24.6 million at 30 June 2020 versus $28.3 million on 30 June 2019.
According to iSentia, its cost base was reduced by $10 million or 10% during the 2020 financial year, which it stated meant that the company was yielding a more sustainable, adaptable business model. The company reported that cost savings were evenly split between operating expenses and cost of sales.
iSentia did not provide earnings guidance for 2021, however, it did comment on the current outlook, stating: “Despite the economic uncertainty, we expect both the media intelligence sector and Isentia’s subscription model to remain resilient, allowing continued focus on the strategic plan and ongoing investment in new products and technology.”
About the iSentia share price
iSentia is a media monitoring and data analytics provider, with most of its revenue coming from software-as-a-service products. It operates in Australia, New Zealand and South East Asia and has been listed on the ASX since 2014. In June, iSentia announced that it would exit its loss-making North Asia business.
The iSentia share price is up by 120% on its 52-week low of 10 cents, however, it is down 24.14% since the beginning of the year. The iSentia share price is down 42.10% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iSentia Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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