M&C Saatchi H1 LFL net revenue falls 1.4% amid client caution

M&C Saatchi

22/09/2026 07:13

Overview
UK advertising group's H1 2026 like-for-like net revenue fell 1.4% yr/yr
Operating profit for H1 declined, impacted by revenue shortfall and investment in AI tools
Company completed £2.2 mln share buyback, evaluating extension

Outlook
M&C Saatchi expects FY 2026 LFL net revenue and operating profit growth in line with market expectations
Company sees FY 2026 net revenue growth driven by Issues and Media Specialisms, with regional Advertising growth in US, UK, and Europe
Conflict in the Middle East expected to continue to impact Sport and Entertainment and consumer-facing businesses in the region

Result Drivers
CLIENT CAUTION - Co said client caution in consumer-facing sectors led to slower decision-making and lower project spend, contributing to weak Q1 performance
SEGMENT VARIATION - Growth in Issues and Media offset declines in Passions & PR and Consulting, with conflict in the Middle East impacting Sport & Entertainment and Advertising in the region
AI INVESTMENT - Margin declined due to scaling up growth businesses and investment in AI tools, per company statement

Company press release: ID:nRSV6685Va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 LFL net revenue
 
GBP 86.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for M&C Saatchi PLC is GBp174.00, about 18.4% above its September 21 closing price of GBp147.00

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)