M&C Saatchi PLC
LSE:SAA
M&C Saatchi PLC
M&C Saatchi plc engages in the provision of advertising and marketing services. The firm's segments include UK, Europe, Middle East and Africa, Asia and Australasia, and Americas. The firm's divisions include Connected Creativity, Passion Marketing, Performance Media, Global and Social Issues, and Brand, Experience and Innovation. The Connected Creativity division is engaged in applying marketing science and creativity to solve complex problems. The Passion Marketing division connects brands direct to consumers through their passions. The Performance Media division operate across the digital ecosystem, using technology and agile tech stack, in real time. The Global and Social Issues division partners with governments, civil society, foundations and the private sector, to deploy behavior change expertise and strategic communications. The Brand, Experience and Innovation division creates transformative digital experience, design and innovation.
M&C Saatchi plc engages in the provision of advertising and marketing services. The firm's segments include UK, Europe, Middle East and Africa, Asia and Australasia, and Americas. The firm's divisions include Connected Creativity, Passion Marketing, Performance Media, Global and Social Issues, and Brand, Experience and Innovation. The Connected Creativity division is engaged in applying marketing science and creativity to solve complex problems. The Passion Marketing division connects brands direct to consumers through their passions. The Performance Media division operate across the digital ecosystem, using technology and agile tech stack, in real time. The Global and Social Issues division partners with governments, civil society, foundations and the private sector, to deploy behavior change expertise and strategic communications. The Brand, Experience and Innovation division creates transformative digital experience, design and innovation.
Revenue Decline: Net revenue declined 5.1% like-for-like in the first half, largely due to significant underperformance in Australia.
Australia Weakness: Australia’s net revenue dropped 27%, causing nearly 90% of the group's decline; management undertook leadership changes, restructuring, and cost cuts in response.
Cost Savings: Transformation and restructuring initiatives are expected to deliver annualized savings of GBP 12 million by 2025.
Profit Guidance: Despite revenue headwinds, the company targets full-year profit to be in line with the prior year.
Operational Resilience: Excluding Australia, net revenue was nearly flat at minus 0.7%, and the business maintained strong client retention.
Cash Generation: Operating cash conversion was strong at 137%, supporting investments, dividends, and M&A.
Strategic Focus: The company accelerated its shift toward higher-margin, non-advertising services and executed bolt-on M&A in growth regions.
