S4 Capital sees 11.7% downfall in net revenue for Q1 of 2024

Delhi: In the initial quarter, S4 Capital observed a continued downturn in revenue, with like-for-like net revenue decreasing by 11.7% and a reported overall decrease of 14.9%.

The decline was primarily attributed to reduced activity from tech services clients. Consequently, net revenues from technology services plummeted by 28.4% to £24.2 million. Meanwhile, both content and data, as well as digital media, saw declines of 8.5%, amounting to £115.7 million and £46.5 million, respectively.

Sir Martin Sorrell, the executive chairman of S4, acknowledged the economic turbulence prevailing in the global marketplace. Nevertheless, he emphasised the group's commitment to leveraging its prominent AI positioning.

Geographically, Asia-Pacific experienced the most significant decline in like-for-like revenue at 13.4%, followed by the Americas (12.3%) and EMEA (7.8%).

Despite the challenging conditions, full-year targets remain unchanged. The group is intensifying efforts towards margin improvement by enhancing efficiency, billability, and pricing.

Sorrell noted that the first-quarter trading reflects the ongoing impact of volatile global macroeconomic conditions and client caution, particularly among technology clients. He underscored the company's focus on margin improvement through increased efficiency, utilisation, billability, and pricing. Additionally, he revealed that financial performance is expected to be significantly second-half weighted, aligning with both normal seasonality and anticipated market improvements.