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S4 Capital lowers revenue outlook amid tariff uncertainty

4th Jun 2025 09:57

(Alliance News) - S4 Capital PLC on Wednesday warned that it expects full-year revenue to fall amid customer caution due to heightened economic uncertainty.

The London-based advertising firm's Executive Chair Martin Sorrell said full-year like-for-like net revenue is expected to be down by low single digits.

The company had previously guided for revenue to remain largely flat compared to the prior year.

At the firm's annual general meeting, Sorrell noted "wider market uncertainty and significant volatility in global economic policy, particularly as a result of the US-imposed tariffs".

S4 Capital said it continues to target like-for-like operational earnings before interest, tax, depreciation and amortisation to be "broadly similar" to 2024.

"We will continue to focus on our cost base and will take further action to support profitability, if necessary. We expect an improved performance in the second half of the year and a greater second half weighting than in the prior year, enhanced by the phasing of new business revenue, including wins already secured," Sorrell added.

The company said it expects improved revenue in the second half to be supported by the phasing of revenue from new business, particularly from General Motors Co, Amazon.com Inc and T-Mobile US Inc.

The company declared a first time final dividend of 1 pence per share, amounting to GBP6.1 million total.

Marketing Services revenue is forecast to be down "only slightly" while revenue in the Technology Services division is expected to be down "more significantly".

Sorrell said the firm is seeing "significant opportunities for new business" particularly from its artificial intelligence tools and capability.

Looking ahead, Sorrell said: "We believe clients will become much more selective about the geographies in which they operate in order to find growth and focus on implementing technologies, such as, but not only AI, to drive efficiency in a slower growth, higher inflation and higher interest rate environment.

"This may be the time when AI-adoption accelerates at scale," he said.

Shares in S4 Capital were up 5.1% at 27.06 pence in London on Wednesday morning.

By Michael Hennessey, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


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