M&C Saatchi expects a small fall in full year net revenue, the result of a “more challenging” advertising market, widely reported across the sector, continuing.
In a trading update for the company’s AGM in London, the global advertising group told shareholders the economic environment has impacted the pace of business in the June quarter, particularly in advertising and media.
The company plans a global cost cutting program.
“However, the company is benefiting from its diverse range of businesses, with the Passions, Consultancy and Issues specialisms continuing to perform strongly,” the company told the London Stock Exchange
“Whilst we expect a small decline in like-for-like net revenue for the full year, we remain confident in delivering year-on-year Headline PBT (profit before tax) growth and headline operating margin improvement.
“This will be achieved through a combination of the high operational gearing inherent in the business model, targeted cost savings and the global cost efficiency program.
“As a result, headline PBT is expected to be significantly weighted towards the second half, although net revenue is expected to be more evenly spread.”
M&C Saatchi in April released record profit results for the year to December 2022. Revenue jumped 17% to £462.5 million and billings were up 12% to £597.5 million
The company then expected headline profit before tax for 2023 to be in line with market expectations of £36.5 million-£38 million, representing a 15%-19% increase on the record profits of 2022.
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