iSentric shares plunge after it writes down Indonesian mobile play
Mobile technology group iSentric has seen its share price fall by half in morning trade on Friday after it wrote down the value of a strategic investment.
iSentric (ASX:ICU) bought Indonesian mobile entertainment company Arte Mobile in early 2015, supported by a $4.3 million capital raise.
On Thursday it wrote down the value of Arte by $13 million in a “non-cash impairment charge” recorded in its yearly results.
“The impairment relates to the carrying value of goodwill of Arte Mobile Pte Ltd, reflecting the downturn in market conditions in Indonesia,” it said.
The company’s shares were down 50 per cent to 3c at 11am AEST Friday.
At the time of the purchase, iSentric said Arte Mobile operated in the “mobile value added service industry”.
This included offering celebrity music and content, digital payment services, mobile games and ringtones.