Comparison site iSelect suffered a double blow over the past year, as changes to energy market regulations had a negative impact on its Energy Watch division in the first half of the year and changes in the health insurance market led to a significant reduction in demand for its health services in the second half.
Revenue fell 19 per cent to A$120.4 million. Big increases in asset impairments and depreciation tipped the company into a loss of $20.5 million, compared with a profit of $1.8 million in 2018/19.
When losses from discontinued operations are taken into account, iSelect reported a loss of $43.5 million for the year to June, compared with a loss of $4.3 million the previous year.
In the health division, the cancellation of the annual April 1 health insurance premium rise in response to COVID-19, as well as the suspension of elective surgery and many extra medical services, resulted in “a significant reduction in demand”.
In the energy division, changes to energy market regulation were a big negative factor in the December half but the company said business in that area picked up in the second half.
Overall, leads fell 17 per cent to 3.3 million and the conversion ratio (the proportion of leads that result in sales) fell from 9.6 per cent in 2018/19 to 8.9 per cent in the year to June.
Following a strategic review, the company cut back call centre headcount “to better align with expected demand.”
In August the company completed the sale of iMoney, its Kuala Lumpur-based Asian joint venture. Launched in 2012 the business has grown but has been a consistent loss maker, and required more capital investment than iSelect was prepared to commit.