iSelect briefing fails to clarify source of revenue shortfall
Financial comparison service iSelect may be straining to generate new revenue from the loans and deposit side of its business.iSelect confirmed yesterday that its revenue projection for the first half of the 2014 financial year was A$2.4 million less than forecast in its prospectus five months ago. Over the current calendar year, revenue will be around five per cent less than was forecast.A trading update yesterday left room for doubt about which elements of the business are to blame for the revenue shortfall. iSelect reported growth in health, life insurance and energy.It confirmed revenue was down on the car insurance side, with marketing plans being deferred (perhaps to help met profit forecasts, which are unchanged).iSelect said it aimed to "complete" more product sales for banks as part of an "end to end" service.Matt McCann, the chief executive of iSelect, left the company over the weekend, after a disagreement with the board."Differences of opinion between the board and Matt led to him tendering his resignation last Friday evening," iSelect executive chairman Damien Waller told AAP on Monday.McCann and the iSelect board had differed over the company's operating priorities."For example, Matt had a view around how to grow the business via acquisition. The board was much more focused on organic growth," Waller said.Waller and the chief financial officer, David Chalmers, will share the work pending the recruitment of a new CEO.