iSelect Limited provides the following update, that saw trading through the last two weeks of March and the first three weeks of April, below company expectations:
- Both the Health and Energy & Telco verticals have been negatively impacted by market volatility and lower than expected leads due to changes in the marketing mix, particularly reduced search engine marketing (SEM)
- Health experienced a softening in overall market demand following low industry rate rises and challenging market conditions given ongoing industry affordability issues
- Energy & Telco was impacted by higher digital customer acquisition costs and lower leads
- Life & General Insurance has been performing to plan, with the changes implemented in Life stabilising that segment and General Insurance continuing to grow.
Revised FY18 underlying EBIT guidance
iSelect has reviewed its expectations for the remainder of the 12 months ending 30 June 2018 (FY18) in light of current market conditions, performance in the second half of FY18 and in particular trading over the past five weeks. With June historically accounting for the bulk of second half earnings and assuming a similar trajectory as that experienced over the last five weeks, the Company has updated its guidance for FY18 underlying EBIT to be in the range between $8 million to $12 million (previously $26 million to $29 million).
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