Ann: Isentia H1 FY19 Results and Strategy Presentation, page-49

Yes thats all that really matters. The ANZ business which is 75% of revenue continues to decline rapidly.

Actually, if you adjust for the discontinuation of the Content Marketing business and for the (one-off, so far) loss of the NSW government contract, ANZ revenue was down by only ~5%.

In other words newspapers are in terminal decline and Isentias legacy systems were built for the newspaper and print media age. The new media age has much less barriers to entry and competition is rising.

Sure, I don’t disagree with that, but we’ve been in the “new media age” for many years now (certainly we were already in it at the time of ISD’s IPO, and that was fully acknowledged in their prospectus). Yet, if you remove the impact of the Content Marketing debacle, ISD’s core media monitoring revenues have been fairly stable throughout their listed history.

So it would appear that, if ISD’s systems are dated, their competitors’ aren’t terribly innovative either. The main impact of increased price competition so far has been on margins (more so than on the overall market share), and arguably that has permanently damaged the original investment case for ISD (as it was presented at the IPO).

But, by now, I think it is fair to say that such impact is well and truly reflected in the price.