M+C Saatchi posted a 3.7% increase to £231 million in like-for-like net revenue for 2024 but the advertising side slipped into negative territory, dampened by economic challenges in the UK and Australia.
The result was driven by 6.7% growth in non-advertising specialisms, offsetting a decline of 1.9% in advertising.
Operating profit grew 5.2% to £35.2 million on the back of a global cost efficiency program.
The global advertising group said the transformation of its operating model from “federated to integrated” delivered £10 million of annualised savings.
The company also reinvested, including key senior hires to reinforce creativity, a regional-first strategy, digital and data capability and business development.
The company said there had been a “significant” shift in its portfolio to higher-margin non-advertising specialisms which now represent 67% of net revenue, up from 60% in 2023.
Non-advertising net revenue grew 6.7% to £153.7 million, driven by Issues, reflecting continued demand from government segments and sustained growth in media.
Advertising recorded strong growth in Europe and UAE but challenging economic environments in Australia and UK resulted in an overall net revenue drop of 1.9% to £77.4 million.
“2024 was an important and successful year for M+C Saatchi,” said CEO Zaid Al-Qassab.
“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 program.
“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.”
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