Sir Martin Sorrell’s (pictured) S4 Capital continues to have a torrid time, reporting a four per cent revenue decline in its Q4 2023 numbers.
In November, the company reported that revenues were down nearly 20 per cent and that billings from clients were down seven per cent. Sir Martin isn’t expecting 2024 to be any better, either, blaming macroeconomic conditions for his firm’s continuing financial woes. However, he did note that the firm’s EBITDA margin grew between 10 and 11 per cent, as a result of cost-cutting earlier in 2023.
“After four years of very strong growth, 2023 was a difficult year impacted by volatile
macro conditions and, consequently, cautious spending from clients, particularly those in
the technology sector and from smaller project-based assignments. Our client relationships
remain strong and we have also managed costs tightly,” said Sorrell.
“While it is early in the year, we are not expecting 2024 to show macro-economic
improvement, and client caution on marketing spend will likely persist, although not at last
year’s level given interest rates are likely to fall over time. Initial indications are for an
improvement in performance in the Content practice, reflecting cost reductions, broadly
similar performance in Data&Digital Media to last year and a more challenging outlook for
Technology Services. In these unpredictable times, we are focused on positioning the
Company for medium-term growth, improving profitability and returning funds to
shareowners.”
S4 Capital’s share price was down some 7.6 per cent since Monday.
