Australian Marketing Institute announces huge operating loss

According to the Australian Marketing Institute’s latest Directors Report and Annual Accounts, it made a net operating loss of $176,072 for the year ending 30^th June 2009 compared to a surplus of $92,340 in the previous year.

It details an operating loss built on the back of a net increase in membership of 2.8%, a 15.7% net increase in Certified Practising Marketer’s (CPM) and a 9% increase in function revenue. The loss means that the Institutes cash reserve has now been reduced by nearly a third.

In spite of the net increase in membership, revenue generated from ‘Members’ subscription fees’ dropped from $956,734 in 2008 to $947,288. The average member now only pays $142.30 for their membership, far less than the $350.00 I pay.

According to the report, the Institute’s Chair had a good year. Not only did the UK publication Market Leader of which Chair is on the Editorial Board is now distributed to all CPM’s, but the Institute paid $28,500 in consulting fees to Roger James & Associates of which our Chair, is a director.

The report also mentions the ‘Leveraging Marketing Assets Forum,’ an annual event which is more commonly known to members as the ‘Brand Finance Forum’ a joint venture between the Australian Marketing Institute and Brand Finance Australia. It failed to mention that last year, Brand Finance Australia appointed the Australian Marketing Institute’s Chair as a Director.

Something which is not mentioned in the report under Directors’ Benefits: 

“No other Director has received or become entitled to receive, during or since the end of the financial year, a benefit because of a contract made by the company or a related body corporate with the Director, a firm of which the Director is a member or a company in which the Director has a substantial financial interest.”

A big part of marketing is perception. So, I strongly recommend members to read the Directors Report and Annual Accounts yourself – 2009 AMI Annual Report.

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