Insights

iSelect (ASX:ISU) share price slides 5% as investors mull FY21 results

The ASX comparison service company released its full year financial results today.
The post iSelect (ASX:ISU) share price slides 5% as investors mull FY21 results appeared first on The Motley Fool Australia. –

The iSelect Ltd (ASX: ISU) share price is sliding today, down 5% to 45 cents per share.

The company offers comparison service for consumers to get the best rates on insurance, utilities and personal finance products.

Below we take a look at the its results for the 2021 financial year ending 30 June.

iSelect share price falls on FY21 results

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) (including JobKeeper) of $20.8 million, up from $13.7 million in FY20
Underlying Revenue of $111 million, down from $123 million in the prior year
Underlying net profits after tax (NPAT) of $7.1 million, up from $3.1 million in FY20
Reported NPAT loss of -$5.1 million, compared to a loss of -$43.5 million in FY20

What happened during the reporting period for iSelect?

iSelect reported significant impacts from COVID-19 during the course of the year, with fluctuating consumer demand hitting its leads and revenue. It said this was most noticeable in the Energy, Telco and Car Insurance segments, with declines of 40-50% recorded.

The company launched new partnerships with NewsCorp and Seven Affiliates Sales, promoting the iSelect and Energy Watch brands.

FY21 also saw iSelect representation of major health insurers grow to 9, following Bupa’s arrival in the marketplace. Meanwhile, Aussie Broadband became a new partner for the company in its Telco segment.

iSelect highlighted management’s rollout of its 5-year strategy, i26, focused around the Consumer Data Right (CDR) legislation, passed in 2019. It said, “The introduction of CDR will empower consumers to compare and switch products and service providers.”

As at 30 June, it had a consolidated cash balance of $9.4 million and no debt.

What did management say?

Commenting on the results of the year gone by, iSelect’s CEO, Warren Hebard said:

During FY21, we have invested in our data platforms and focused on growing our iSelect account base, which is now up to 1.1 million customers. We will continue this ahead of the arrival of Open Energy in FY23, when we will look to leverage these investments to deliver new and innovative digitised journeys for our customers, providing a frictionless, always-on comparison experience.

What’s next for iSelect?

Looking to the year ahead the company cautioned that the pandemic is continuing to cause market volatility. iSelect expects this will impact its performance in the first half of FY22.

Taking note of increased competition entering the space, Hebard said:

Our focus in FY22 will be on executing operationally within our core business whilst progressing our i26 strategy. Our first phase of i26 will be leveraging our Energy expertise in preparing for Open Energy, building out our new verticals and continuing to invest in our marketing partnerships and brand.

The iSelect share price is up 65% over the past 12 months.

The post iSelect (ASX:ISU) share price slides 5% as investors mull FY21 results appeared first on The Motley Fool Australia.

Should you invest $1,000 in iSelect right now?

Before you consider iSelect, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and iSelect wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Pepper Money (ASX:PPM) share price jumps 7% on ‘milestone after milestone’
Bendigo Bank (ASX:BEN) share price outperforming amid ‘sustainability first’
Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher

ReadyTech (ASX:RDY) share price soars 7% on $50 million revenue
McMillan Shakespeare (ASX:MMS) share price plummets 9% despite 2500% rise in NPAT

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!