Restructure takes its toll on Salmat as revenue drops $47m

October 1, 2016 11:27

Marketing services company Salmat has managed to lift its earnings before tax by 47% despite an ongoing restructure wiping $47m from its revenue stream.

The review of its products and services portfolio launched last year saw the company drop a number of services it saw as either underperforming or non-strategic, with the direct impact of the restructure costing Salmat $38m during the 2016 financial year.

Salmat reported revenue of $450.8m, down from $498.1m in 2015, with the net loss after tax amounting to $6m – a 93% improvement on the loss of $98m in 2015.

It also reported underlying earnings before interest, tax, amortisation and depreciation of $19.6m, up 47.3% from the previous year.

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Simon Canning

Simon Canning was Mumbrella's marketing and advertising editor from 2015-2017. In a career spanning journalism and communications over more than 30 years Simon has become one of Australia’s most respected analysts and commentators on the advertising, marketing and media industries. A regular commentator on radio and TV, Simon has also worked in media in the US and UK .

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