The iSelect Ltd (ASX: ISU) share price has fallen 50% today, according to Yahoo! Finance, after announcing a profit downgrade and telling the market its CEO is leaving.
iSelect is one of Australia’s largest comparison websites, enabling consumers to source cheaper deals on household bills like gas and electricity.
The comparison company said that both its Health and Energy & Telco segments have been hurt by recent weak performance.
iSelect’s Health business is suffering due to less overall market demand and ongoing affordability issues in the private health insurance sector.
Meanwhile, the Energy & Telco segment was impacted by higher digital customer acquisition costs and lower leads. In other words, iSelect is having to spend more on advertising to win new customers – and it’s getting fewer customers.
iSelect Profit Downgrade
Profit-wise, iSelect has changed its guidance of day to day profit, or EBIT (click here to learn what EBIT means), for its 2018 financial year to be between $8 million and $12 million. Previously, iSelect expected between $26 million and $29 million in EBIT.
In the same ASX announcement, iSelect announced that the CEO and Managing Director, Scott Wilson, has resigned – effective immediately.
Summary
Investors appear to have baulked at the company’s announcement since its share price fell by more than 50% in early trade, according to Google Finance.
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