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iSelect aims to hit top of earnings target

AAP logoAAP 18/11/2016

Comparison website iSelect expects to hit the upper end of its full year earnings guidance as it enjoys strong trading conditions in its insurance, finance and utilities operations.

The group in August forecast earnings before interest and tax of between $21 million and $24 million in the 2016/17 financial year.

"The strong performance we experienced in the second half of FY16 has continued into the current period," chief executive Scott Wilson told iSelect's annual general meeting.

"Trading in all of our segments in the first quarter of FY17 has been very strong, with revenue growth at or above our expectations for this time of year."

He reaffirmed the company's earnings guidance and said he expects the company's financial results will be at the upper end of that range.

Mr Wilson also said the company has identified a number of additional investment opportunities for growth, in the form of marketing and technology projects. Investment in these projects will be accelerated if the iSelect's strong trading performance continues, he said.

The online operator achieved a turnaround in the second half of the 2015/16 year, recovering from a first half loss to post an annual profit of $12.9 million.

It is aiming to replicate the scale of its health insurance segment in energy and broadband, where it has a 12 per cent and five per cent market share respectively.

In the longer term, it sees potential in cars, credit cards, home loans and life insurance segments, Mr Wilson said.

iSelect shares were down one cent at $1.89 at 1430 AEDT.

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