ISelect shares tumble after guidance slashed by $14m

SHARES in iSelect plunged more than 50 per cent to a record low after the online comparison site slashed its 2018 earnings guidance and chief executive Scott Wilson immediately quit.

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

iSelect said 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. iSelect will start a search for a new chief executive after Scott Wilson tendered his resignation, ending five years at the company.

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

Independent non-executive director Brodie Arnhold has been appointed acting chief executive. Shares in iSelect were 52¢, or 52 per cent lower at 48¢ in intraday trading, before closing down 55.5 per cent at 44.5¢. ISelect said that its health insurance, energy and telecommunications businesses had been impacted by market volatility and lower-thanexpected leads. ISelect said it is reviewing its marketing strategy to address the issue of fewer leads.

Health insurance experienced softer overall demand in the wake of low industry-wide premium increases.