M&C Saatchi H1 LFL net revenue falls 1.4% amid client caution

By Reuters News


Overview

  • UK advertising group's H1 2026 like-for-like net revenue fell 1.4% yr/yr

  • Operating profit for H1 declined, impacted by revenue shortfall and investment in AI tools

  • Company completed £2.2 mln share buyback, evaluating extension


Outlook

  • M&C Saatchi expects FY 2026 LFL net revenue and operating profit growth in line with market expectations

  • Company sees FY 2026 net revenue growth driven by Issues and Media Specialisms, with regional Advertising growth in US, UK, and Europe

  • Conflict in the Middle East expected to continue to impact Sport and Entertainment and consumer-facing businesses in the region


Result Drivers

  • CLIENT CAUTION - Co said client caution in consumer-facing sectors led to slower decision-making and lower project spend, contributing to weak Q1 performance

  • SEGMENT VARIATION - Growth in Issues and Media offset declines in Passions & PR and Consulting, with conflict in the Middle East impacting Sport & Entertainment and Advertising in the region

  • AI INVESTMENT - Margin declined due to scaling up growth businesses and investment in AI tools, per company statement


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 LFL net revenue

GBP 86.2 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advertising & marketing peer group is "buy"

  • Wall Street's median 12-month price target for M&C Saatchi PLC is GBp174.00, about 18.4% above its September 21 closing price of GBp147.00


Reuters Recommended Reads

  • Sept 21 - Wegovy maker Novo shares slump as management grilled on pricing, M&A


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.