- Media and data intelligence company Isentia Group (ISD) has decided to close its loss-making North Asian operations following an extensive strategic review
- These segments are no longer considered core to the company’s overall strategy and would require significant capital investments to meet customer requirements
- As part of this process, Isentia has entered a strategic alliance with Wiser Information to assist in moving the company’s clients to other local operations
- The closures are expected to results in a one-off cost of between $3 million and $4 million over the next 12 months
- Isentia Group shares have tacked on more than a third of their opening value today, rising 34.5 per cent to trade for 19.5 cents per share
Media and data intelligence company Isentia Group (ISD) has decided to close its loss-making North Asian operations following an extensive strategic review.
The Sydney-based company believes the segment is no longer a core aspect of its overall strategy. This is largely due to its poor alignment with other aspects of the business and the significant capital investments that would be required in order to meet customer requirements.
To facilitate the process, Isentia has entered into a strategic alliance with Wiser Information — a Hong Kong-based provider of smart business intelligence solutions. Under the alliance, Wiser will help to move clients in Beijing, Shanghai, Hong Kong and Taiwan to ensure the continuation of access to media intelligence and insights.
The alliance also provides the opportunity for Isentia and Wiser to explore further collaborations in other markets.
In addition to the closure of North Asian operations, Isentia will also sell its stake in its Korean business to a local partner and exit the market.
Ed Harrison, Managing Director and CEO of Isentia Group, said the decision to exit the North Asian market was not taken lightly, but reflects the company’s strategic focus on building regional scale with a single platform.
“The exit streamlines our business and clears the path for innovation to reach all our markets simultaneously,” Ed said.
“The strategic alliance with Wisers represents a unique opportunity to transition our clients to a leading local business intelligence provider and to explore the possibility of further collaboration in other regions,” he added.
Financially, the closure is expected to result in a one-off cost of between $3 million and $4 million, which will be incurred over the next 12 months. There may also be a non-cash impairment against the carrying value of the North Asian assets. This impairment is currently being determined but is not expected to impact the Insentia’s existing banking covenants.
Isentia noted that it remains committed to its South-East Asian markets, which currently demonstrate recurring revenue and strong levels of growth.
Isentia Group shares have tacked on more than a third of their opening value today, rising 34.5 per cent to trade for 19.5 cents per share at 2:19 pm AEST.