M+C Saatchi has reported a 0.4 per cent growth in its overall revenue and a 3.7 per cent lift in its net revenue according to its unaudited results for last year.
The group, which recently shorn its ampersand for a more modern-looking “+”, said its performance was driven by strong 6.7 per cent growth in Non-Advertising Specialisms, offsetting a modest Advertising decline of -1.9 per cent.
The group said the admirable performance of its Non-Advertising Specialisms was fuelled by continued strong growth of 27.6 per cent in Issues.
Its Issues specialism sees M+C work on topics including the climate emergency, global health, human rights and freedoms, social justice and The Sustainable Development Goals. Its clients include governments, NGOs, multilaterals, foundations, philanthropies and consumer brands.
The strong performance, M+C said reflects its leading market position working with the governments of Western democracies alongside charity foundations and NGOs, and highlighting the specific expertise it has developed in this highly specialised field, mainly public sector.
M+C’s Media division built on its first half recovery, following a more difficult 2023, ending the year up 8.2 per cent.
M+C attributed the Advertising decline to a tougher second half environment, particularly in Australia and the UK. It said macro conditions remain challenging in these markets but it was “significantly offset” by continued growth in the UAE, Europe and the US. Its overall APAC revenue was down 9 per cent, of which the Australian market is a large chunk, was due to the cost of living and high interest rates discouraging spending and dampening consumer confidence.
“2024 was an important and successful year for M+C Saatchi. Our strong results, with growing LFL net revenue, profitability and cash generation, were broad-based and reflect the health of the business. Since Simon Fuller and I joined as CFO and CEO, our focus has been laying the foundations for long-term profitable growth. We are confident that our world-leading creativity, global reach, and specialist capabilities, is the combination desired by clients. Higher margin specialist services now account for two-thirds of our business and Advertising one third, reflecting the direction of our growth strategy, which is reinforced by our continued transformation programme,” said Zaid Al-Qassab, M+C Saatchi’s chief executive officer.
“We have increased our resilience through further diversification of our portfolio, without over-exposure to any particular segment, and we are encouraged that we have the right model for future top-line growth and strong sustainable returns for shareholders. In the near-term, while remaining mindful of ongoing macro volatility, the Board is confident that we are on track to meet market expectations for 2025.”
