Powered by MOMENTUM MEDIA
subscribe to our newsletter
Mortgage Choice winds up online business

Mortgage Choice winds up online business

Listed broking group Mortgage Choice has just announced that it will wind up its comparison website.

As a consequence of a comprehensive strategic and operational review, Mortgage Choice has made the decision to shut down its Help Me Choose business unit.

Mortgage Choice presented its 2014-15 financial results in August and chief executive officer John Flavell made it clear that Help Me Choose’s financial result needed addressing.

Advertisement
Advertisement

“The less than favourable financial result of the Help Me Choose business prompted a comprehensive review of the operation and a decision has been made to close it down in its current form,” Mr Flavell said.

“Mortgage Choice will continue to focus on evolving the Mortgage Choice business by building a compelling and differentiated financial services offering and, in turn, providing sustainable earnings for its shareholders.

“Capitalising on the significant opportunities facing Mortgage Choice requires focus, and continuing to invest in a business that is unlikely to be profitable in the foreseeable future does not make sense.”

At the group’s full-year results last month, the Help Me Choose business results was noted as “a matter of urgency” by Mr Flavell.

An investment was made in headcount in order to capitalise on seasonal uplifts in the second half of the 2015 financial year, but the uplift wasn’t there.

“In hindsight, the headcount was recruited too early and the improved results in May/June did not increase revenue in proportion to the cost increases,” the company said in a statement.

Gross profit from the group’s Help Me Choose business fell sharply from approximately $750,000 in March to below $300,000 in June, its lowest level since the beginning of the year.

 

Mortgage Choice winds up online business
mortgagebusiness

 

Latest News

ASIC is determined to flex its muscles, with a bill designed to enhance its enforcement powers one step closer to law.  ...

Treasurer Josh Frydenberg has told the banks and regulators that they will face an inquiry down the track to ensure they have lifted their g...

A CEO has welcomed the introduction of legislation that would “remove a handbrake” that has held back customer-owned banks from competin...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?