ISelect CEO out as earnings shed

SHARES in iSelect have plunged more than 55 per cent to a record low after the online comparison site slashed its 2018 earnings guidance and chief executive Scott Wilson immediately quit.

iSelect, is engaged in health, life and car insurance sales, mortgage brokerage, and energy, broadband and financial referral services, has slashed its earning expectation to between $8 million and $12 million for the full year, well down on its previous guidance of $26 million to $29 million.

iSelect says trading in the last two weeks of March and the first three weeks of April was below company expectations amid volatile markets, fewer leads and higher digital customer acquisition costs.

It will start a search for a new chief executive after Scott Wilson resigned, ending five years at the company.

In a statement, the board thanked Mr Wilson and said it “wishes him all the best in his future endeavours”.

Independent non-executive director Brodie Arnhold, who is also chair of the audit and risk committee, has been appointed acting chief executive. Shares in iSelect closed 55.5 cents, or 55.5 per cent, lower at 44.5 cents. iSelect said that its health insurance, energy and telecommunications businesses had been impacted by market volatility and lower-thanexpected leads.

It added it is reviewing its marketing strategy to address the issue of fewer leads.