- S4 Capital
- 04 June 2025 09:04:35
Source: Sharecast
The company, which had previously said it expected net revenues and operational EBITDA to be both unchanged on 2024, now forecasts a low-single-digit decline on the top line, with falls in marketing services and technology services.
The latter is still being affected by revenue reductions by a major client, but S4 said this effect will “cycle out” in the second half of the year.
Nevertheless, like-for-like operational EBITDA is still expected to be “broadly similar” to 2024, with a higher second-half weighting than last year. This reflects the timing of revenue from significant new business wins, particularly with General Motors, Amazon and T-Mobile, the company said.
In an AGM statement to shareholders, Martin Sorrell said that business has been affected by “volatile global macroeconomic conditions” over 2025 so far. “As a result, clients remain generally cautious given the uncertainty, with technology clients, which account for almost half our revenue, in particular, continuing to prioritise capital expenditure on expanding AI capacity,” he said.
“We will continue to focus on our cost base and will take further action to support profitability, if necessary. We expect an improved performance in the second half of the year and a greater second half weighting than in the prior year, enhanced by the phasing of new business revenue, including wins already secured.”
Shares were up 5% at 27.04p by 0840 BST, following a 20% drop in the stock so far this year.