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S4 Capital PLC on Thursday said it is seeing ‘significant’ opportunities for new business despite reporting a drop in revenue and cutting full-year guidance. The London-based advertising firm now expects like-for-like net revenue to fall by an upper-single-digits percentage in 2025 from £754.6 million in 2024. It had previously guided to a mid-single-digit like-for-like net revenue decline in 2025, which it had lowered in September. The company continues to forecast operational earnings before interest, tax, depreciation and amortisation to remain broadly similar to £87.8 million in 2024, noting financial performance will be weighted to the fourth quarter. In response, shares in S4 Capital fell 7.2% to 20.18 pence each in London on Thursday. S4 Capital said revenue fell 3.4% to £191.7 million in the third quarter to the end of September from £198.4 million the year prior, or 1.0% on a like-for-like basis, while billings rose 1.9% to £490.9 million from £481.6 million. Net revenue declined 6.9% to £167.0 million from £179.3 million and fell 4.4% on LFL basis. Net revenue sank 26% in Europe, Middle East & Africa, by 20% in Asia Pacific and by 1.7% in the Americas. S4 Capital said it will consider approving an enhanced final dividend for 2025, if the improved second half performance and liquidity targets are delivered. Executive Chair Martin Sorrell said clients remain ‘generally cautious’, with technology clients, which account for almost half S4’s revenue, continuing to prioritise capital expenditure on expanding AI capacity. Nonetheless, he said S4 is seeing ‘significant opportunities for new business, particularly driven by our AI tools and capability.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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