S4 Capital revenue drops in first quarter amid tricky backdrop
S4 Capital PLC on Thursday reported a decrease in its first quarter revenue, on a ‘challenging’ economic environment which has hit client spend.
The digital advertising and marketing company’s revenue in the first quarter of 2025 was £178.1 million, down 15% from £210.2 million the previous year.
This was attributed to a ‘challenging’ macroeconomic environment caused by the US tariffs as well as a reduction in activity in one key technology client.
The firm’s first quarter operating earnings before interest, taxes, depreciation, and amortisation were in line with expectations, supported by cost-saving measures implemented in response to reduced activity levels.
Looking forward, S4 Capital expects improvements in the second half driven by the phasing of revenue from new business.
It added that it expects net revenue and operational Ebitda to be ‘broadly similar to 2024,’ with a further reduction to net debt by the end of the year to be between £100 and £140 million.
In 2024, S4 Capital achieved a net revenue of £754.6 million and an operating Ebitda of £87.8 million.
The company said over the longer term, it anticipates growth will ‘outperform’ its markets, with operational Ebitda margins of around 20%.
S4 Capital shares were flat at 25.80 pence in London at midday, but had traded lower for most of the morning.
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