Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Brokerage CEO steps down following earnings downgrade

exit leave ta

exit leave ta
Reporter 1 minute read

iSelect has announced the immediate resignation of CEO Scott Wilson as its share price plummets by more than 55 per cent.

Non-executive director Brodie Arnhold will take on the role of interim CEO as iSelect commences its search for a longer-term replacement.

The online comparison site and mortgage brokerage slashed its 2018 underlying earning expectation by 58 per cent to 72 per cent, from between $26 million and $29 million to between $8 million and $12 million.

The updated earnings guidance, submitted on Monday, saw iSelect’s per-share price drop by 55.5 per cent from $1.00 at the close of Friday (20 April) to $0.445 at the close of Monday (23 April).

iSelect admitted in a disclosure to the Australian Securities Exchange that it has been trading below expectations over the last five weeks, averaging at $1.021 per share from March 19 to April 20.

It attributed its poor financial performance in recent weeks to market volatility, fewer leads from search engine marketing and higher customer acquisition costs, which particularly impacted its Health and Energy & Telco verticals, while Life & General Insurance has been performing as expected.

CMO Warren Hebard is amid reviewing iSelect’s marketing strategy and mix modelling tools to address lead generation underperformance, while COO Henriette Rothschild is leading efforts to improve business unit performance. Business operations group executive and interim CFO Vicki Pafumi is also heading up efforts to drive operational performance improvement.

Mr Wilson’s departure follows the appointment of Nadine Lennie as iSelect’s new chief financial officer, after an “extensive search process” that began last November.

Advertisement
Advertisement

PROMOTED FEATURES


Ms Lennie, who has held numerous public company CFO roles throughout her 20-year financial career, is scheduled to take over from iSelect’s interim CFO on 2 July 2018.

iSelect late last year announced becoming a majority shareholder in Kuala Lumpur–based fintech iMoney, increasing its stake from 23.8 per cent to 51. 5 per cent by purchasing US$4.15 million in shares in October.

At the time, iSelect said that it would leverage the high level of visitation to the iMoney site in a bid to dramatically improve the monetisation rate of its unique visitors. 

[Related: CEO of AMP resigns with immediate effect]

Brokerage CEO steps down following earnings downgrade
exit leave ta
TheAdviser logo
exit leave ta

 

more from the adviser
house coins ta Aussie reports record spike in pre-approvals

The major brokerage has reported a record increase in home loan p...

Money jar Facebook launches SME grants program

The social media giant has commenced processing applications for ...

uptick Aggregator reports surge in settlements

Purple Circle Financial Services has reported a record increase i...

FROM THE WEB