M&C Saatchi says revenue down but expects growth this year

M&C Saatchi PLC said it anticipates decreased revenue for 2025, but is confident that it will see ‘profitable growth’ in 2026 despite a tough macroeconomic climate.

The London-based advertising and communications agency said it expects like-for-like revenue to decline by approximately 7% on-year, or by around 2.5% excluding Australia. In its November trading update, it predicted a LFL net revenue decline of around 7%, or 1.5% excluding Australia.

M&C Saatchi expects reported new revenue of £210 million, which would be down from £395.4 million in 2024. LFL revenue had improved 0.4% to £392.5 million.

The company noted that it had achieved its £12 million annualised cost-savings commitment in the second half, and said its balance sheet remains strong with net cash of £13 million as of December 31.

M&C Saatchi also said the second half saw ‘improved pipeline conversion...translating into multi-specialism wins across various markets’. These included work on Coca-Cola’s Premier League sponsorship, increased work for JPMorgan Chase and Ferrari, and two ‘wins with the UK government’.

Looking ahead, M&C Saatchi is ‘confident that the business will achieve profitable growth in 2026, underpinned by our long-term value drivers and core growth markets.’ It said this was despite persisting macroeconomic challenges.

‘In a year defined by a challenging macro environment, I would like to thank all colleagues at M&C Saatchi for their continued hard work and commitment in delivering fantastic work for clients,’ commented Chief Executive Officer Zaid Al-Qassab. ‘I am confident that our world-famous creativity and excellent client retention combined with our portfolio strategy and higher-margin growth drivers will deliver value for clients, colleagues and shareholders.’

Shares in M&C Saatchi were 2.7% higher at 128.32 pence on Monday in London.

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