UK ad group M&C Saatchi's high-margin units help counter market weakness

M&C Saatchi

Today 08:26

    June 11 (Reuters) - M&C Saatchi's SAA.L performance during the first four months of the year was in line with market expectations, the British advertising group said on Thursday, with the firm's high-margin businesses countering a prolonged downturn in the industry.
Global macroeconomic uncertainty has forced businesses to cut non-essential spending such as marketing and focus on AI-led efficiencies, hitting groups such as M&C and rival S4 SFOR.L. Earlier this month, S4 said progress on its revenue was insufficient.
     
Here are some details from M&C's business update:
• First four-month like-for-like net revenue was supportive of the market's full-year outlook
• Positive growth in its high-margin Issues and Media businesses, covering public affairs and media buying, is compensating for challenging market conditions
• Targeting net revenue and operating margin growth this year, with recent client wins, including UNICEF and Ras Al Khaimah Tourism Development Authority
• Focus remains on simplifying the business, refining its go-to-market offering and unlocking intrinsic value - Executive Chair Heather Rabbatts
• In April, M&C warned that the Iran war would significantly hurt parts of its business after posting a 75% drop in annual profit

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Harikrishnan Nair)
((DhanushVignesh.Babu@thomsonreuters.com))