S4 Capital said today that when its financial figures for full-year 2023 are finalized it expects to report an organic net revenue decline of 4% compared to full-year 2022. Investors drove shares down about 4% on the news. 

The company said it would issue final full-year 2023 results on March 27.  

In November the firm said it expected to report a decline but didn’t offer specifics. 

Full-year operating profit margin for 2023 will be in the 10-11% range, the company said, noting a second half improvement achieved with “significant cost reductions.” 

S4 executive chairman Martin Sorrell said the “difficult” 2023 was the result of macroeconomic concerns by clients and spending cuts in the technology sector and smaller project-based assignments.   

As for this year, Sorrell stated that “we are not expecting 2024 to show macro-economic improvement, and client caution on marketing spend will likely persist, although not at last year's level given interest rates are likely to fall over time.” 

Early indications, he added, are for “an improvement in performance in the Content practice, reflecting cost reductions, broadly similar performance in Data & Digital Media to last year and a more challenging outlook for Technology Services.” 

He added that the firm is “focused on positioning the Company for medium term growth, improving profitability and returning funds to shareowners."