Martin Sorrell forecast another tough year for S4 Capital after the ad group's core earnings fell 25% in 2023, reflecting a reluctance from its tech-heavy clients to spend and few new business wins. Shares in S4 Capital, which hit 878 pence in September 2021, fell 11% to 40 pence in early deals on Wednesday, valuing the company at 230 million pounds ($290 million). S4 said its content business was hit in the second half by lower spending by tech clients, while trading in its data & digital media unit had deteriorated as the year had progressed, and growth in technology services had slowed significantly.
Martin Sorrell's ad group S4 Capital reported a 25% drop in core earnings in a "difficult" 2023, reflecting a reluctance from its clients to commit to larger projects and a tough year for new business. The group said it expected its clients to remain cautious in the short term as it forecast another fall in like-for-like net revenue in 2024 and earnings broadly around the same level as 2023's 93.7 million pounds ($118.2 million).
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