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Cancelled Telstra call centre contract hits Salmat hard

Shares drop more than six per cent. after guidance cut

Shares in Salmat Ltd have dropped by over six per cent on the ASX after cutting guidance because of Telstra Corporation Ltd cancelling its call centre contract with the group.

Salmat shares were down $0.25, or 6.07 per cent, at $3.87 by early afternoon.

The call centre provider and catalogue-delivery company said Telstra had notified Salmat that it no longer required the provision of its call centre services.

Salmat said its earnings before interest, tax and amortisation (EBITA) would drop by between $4 million and $5 million in the second half of the financial year.

Its full year EBITA guidance had been cut by $5 million to between $87 million and $92 million.

Salmat also said in a statement that Telstra contract loss fitted with its strategy of moving away from labour-hire call centre contracts to providing hosted call centre technology and outsourced capabilities.

The company said it maintained a close relationship with Telstra, with Salmat continuing to provide the telco with customer communication services and Telstra providing it with telephone services.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: Salmat, Telstra

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