Misys shuts cash-burning Web sites
Misys plc has signalled its retreat from the B2C sector by closing it consumer financial services businesses, screentrade.com and theformula.com.
The FTSE-listed financial software outfit said that its B2B portals, m-link and i2i-link, are unaffected by today's announcement.
The decision to close the sites was taken after Misys failed to find a partner to help share development and marketing costs for the product comparison sites.
In the last year Misys' B2C operation cost the company £19 million out of a budget of £23 million spent by its Internet Services of Division.
The cost of closing the sites will cost the company £10 million.
It's not known if any jobs will be lost as part of the closures. No one from Misys was available for comment by press time.
However, in a statement, chairman Kevin Lomax said: "Having been one of the UK pioneers of Internet-based consumer financial services with screentrade, it is particularly disappointing that we have had to take this decision.
Although we established a strong foothold in the marketplace with screentrade, slower-than-anticipated consumer adoption of the Internet for purchasing a broader range of financial services products has resulted in ongoing losses at a level which can no longer be justified by potential returns." ®