Martin Sorrell’s S4 Capital PLC (LSE:SFOR) advertising firm posted a dreary AGM statement on Thursday marred by ongoing macroeconomic concerns and a lack of advertising market growth.
Like-for-like revenues are down from the previous year, though operating profit remains “broadly similar” due to cost-cutting actions, said S4.
Sorrell stated: "2023, our fifth full year, was a difficult year with slower market growth and continuing macroeconomic uncertainty.
“The first half saw a mixed performance with less momentum and an anticipated second-half seasonal uplift, which did not materialise amidst continuing client caution together with economic and geopolitical challenges.
“Overall, we saw clients very much focused on the short term, particularly in relation to larger transformation projects, which resulted in longer sales cycles, along with lower regional and local opportunities.”
In the first four months of 2024, S4 Capital saw some improvement in the profitability of its Content Practice, although overall trading reflects the impact of volatile global conditions.
Nonetheless, the AGM statement mentioned notable business wins including Burger King, Panasonic, and AliExpress.
S4 shares dipped 3.8% to 49.94p on Thursday.