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S4 Capital PLC on Monday reported a wider loss for the first half of 2025 as revenue fell sharply, though the digital advertising group said it expects stronger trading in the second half and may raise its final dividend if liquidity targets are met. Shares in S4 were down 12% at 20.04 pence in London on Monday morning. The London-based firm, founded by Executive Chair Martin Sorrell, said its pretax loss widened to £25.1 million in the six months to June 30 from £17.2 million a year prior. Revenue fell 15% to £360.4 million from £422.5 million, while net revenue was 13% lower at £328.2 million. On a like-for-like basis, net revenue fell 10%. Operational earnings before interest, tax, depreciation and amortisation dropped 31% to £20.8 million from £30.1 million. S4 said market conditions remained ‘volatile,’ with clients cautious amid global macroeconomic uncertainty and ongoing tariff negotiations. Technology clients, which account for nearly half of group revenue, continued to prioritise investment in artificial intelligence capacity, weighing on sales at its Technology Services unit. However, Sorrell said revenue should improve in the second half as new contracts with General Motors Co, Amazon.com Inc, T-Mobile US Inc, and a major US-based consumer goods firm ramp up. The company kept guidance for full-year operational Ebitda broadly in line with 2024 levels, with performance heavily weighted to the second half. S4 now expects a mid-single-digit like-for-like net revenue decline in 2025, compared with a previous forecast of a low-single-digit fall. Net debt stood at £145.9 million at June 30, down from £182.9 million a year earlier, and the group reaffirmed its year-end target range of £100 million to £140 million. ‘The board will consider approving an enhanced final dividend for 2025 if the improved second-half performance and liquidity targets are delivered,’ S4 said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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