iSelect regaining momentum
Shares in comparison website, iSelect (ASX:ISU), continued their recovery from January lows. With a new management team in place since last October, the business appears to be regaining momentum. Key to investor sentiment will be the company's ability to hit its recently restated profit guidance for the full year – it is fair to say ISU has had a mixed track record in achieving profit targets since listing in 2013. Following changes to the sales team structure and a simplified recruitment process for key call centre consultants, the business now appears to be back on track. Recent private health insurance (PHI) premium rises are likely to prove supportive for insurance members to seek changes, through savings or simply a more suitable policy. Further, we believe ISU is well advanced in terms of market share gains and segment profitability for both the Energy and Telco segments, reducing ISU’s reliance on profits from the PHI segment.
View the April 2016 performance reports: