S4 Capital lowers annual revenue forecast due to cautious tech clients

Published 04/06/2025, 07:58
© Reuters.

Investing.com -- S4 Capital PLC (LON:SFOR), the advertising group led by Martin Sorrell, reported on Wednesday that it anticipates a decrease in its annual like-for-like net revenue by low single digits.

This downward revision comes as its tech clients remain wary due to a softer global economy and the imposition of U.S. tariffs.

Previously, S4 Capital had predicted that its revenue and operational core earnings for 2025 would be roughly on par with those of 2024. However, the current economic climate has led to a shift in strategies among its tech clients, who are now favoring capital spending over marketing.

This change in strategy, coupled with reduced work from a major client, has impacted the group’s revenue.

S4 Capital continues to hold steady on its profit expectations for the year.

The group also commented on the future business landscape. It stated that once there is more clarity regarding U.S. tariffs, it expects clients to become more discerning about their operational locations.

 

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