Isentia Group (ISA)

Isentia Group Limited is the media intelligence company in the Asia-Pacific region operating across Australia, New Zealand and Asia. It operates a Software-as-a-Service (SaaS) and Value Added Service (VAS) business that provides many of the leading brands, companies, agencies, industry bodies and governments with media intelligence services. The main components are Media monitoring, social media monitoring and analysis, Media measurement and analysis, Contract management, and Media release distribution.

 Isentia Group use software and other systems to capture, enrich, search and relevance-match specific brands, topics, opinions or issues across media and social media content sources to gather relevant information to inform and alert clients.

The use of software algorithms and subject matter experts delivers quantitative and qualitative insights to assist clients in understanding the effectiveness of their communications, media and marketing strategies. This assists the client to more effectively develop and execute their communications strategies to ensure communications are reaching the relevant media influencers and audiences.

Of interest since Malcolm Turnbull became prime minister the government has spent around $1.8 million on media monitoring. This is a big business which will get bigger as companies and people look to persuade you as to where you spend your dollar or how you should vote.

Given that Isentia has 90% of the market share in Australia in a growing business it appears to be good long term growth investment. There is however a new player from Norway called Meltwater group who are also looking to break in the Australian market.

The company is trading at $3.88 with a target price of $4.00; they pay a 2.1% dividend 50% franked. At present at the current price the stock is not a compelling story, for the long term investor it might be worth looking to pick up a small holding which you can add to later. I will continue to watch this company looking for an opportunity to buy at a lower price of improved trading conditions.