iSelect shares are getting smashed, slumping by more than a third after the comparison website slashed its earnings guidance for the 2016 financial year.
Full year earnings before interest and tax is now expected to be between $15 million and $18 million, the company said earlier today. This is down from the previously forecasted figure of $26 million.
After an in depth review of their operations, iSelect told investors that the significant factors in the drop included lower sales conversions in its health insurance business and staff costs.
“The reduction in EBIT is disappointing, but what has become clear since my appointment is the importance of ongoing and additional strategic investment in the business to ensure iSelect creates long-term growth for shareholders,” said chief executive Scott Wilson.
Management issues has plagued the company recently, turnover of senior management at an all time high. Last year it was forced to issue a profit downgrade and faced heat from the Australian Securities and Investments Commission.
Shares for iSelect, as of 11:35am were trading at 75 cents, down 32%.