S4's Revenue Tumbles in Q3

S4 Capital has announced results for the third quarter, with revenue of £198.4m, down 17% on a like-for-like basis.

The Data and Digital Media division of Sir Martin Sorrell's firm fared least badly, with a like-for-like (LFL) revenue decline of just 0.4% (to £47.3m), but the Content division - by far the group's largest, declined 16.4% versus a year previously to £131.0m, while the relatively new Technology Services unit saw revenue plummet 42.1% (LFL) to £20.1m. Overall net revenue, which the firm has said is a better indicator of performance, fell 12.6% LFL to £179.3m.

Geographically there were wide differences. Net revenue in EMEA was flat - actually up 1.3% LFL - at £30.4m, while in the Americas the figure was £138.5m, a LFL decline of 14.5%, and in Asia Pacific it slid 21.2% (LFL) to £10.4m.

Sorrell said results were impacted by 'challenging global macroeconomic conditions and high interest rates, as well as some underperformance when compared to our addressable markets'. He added: 'In light of the continued net revenue softness, we have maintained the heightened focus on cost reduction and we now expect like-for-like operational EBITDA to be slightly below the prior year'.

After a strong 2022, S4 began reporting declines a year ago but overall 2023 figures were down only about 4% on the previous year - the decline has accelerated rapidly this year.

The group, which now employs around 7,500 people in 33 countries, is online at www.s4capital.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.