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.
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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.
