(Alliance News) - Advertising agency S4 Capital PLC on Friday backed annual guidance but cautioned that growth so far in 2023 has been "more modest" than in 2022.
S4 Capital, which had experienced like-for-like net revenue growth of 26% in 2022, said growth was more muted in the first four months of 2023, "reflecting the slowdown in the growth rates of our two main addressable markets", Executive Chair Martin Sorrell will say at the company's annual general meeting today.
The London-based firm said the pace of like-for-like net revenue growth moderated due to the "slowdown in the growth rates of our two main addressable markets, with technology platforms around 6% and technology services to 7-10%".
It still expects 2023 like-for-like net revenue growth of between 8% and 12% excluding the impact of one "whopper" reduction and 6% and 10% including it. A whopper is a major client for S4 Capital.
Last month, S4 Capital reported revenue for the first three months to March 31 of GBP261.7 million. Net revenue was GBP210.1 million.
Shares were down 2.2% at 126.30 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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S4 Cap. (SFOR)
