S4 Capital Gets Off To Bumpy Start In 2024 As Q1 Revenue Falls 11.7%


As expected S4 Capital experienced a tough start to the year with a first-quarter organic net revenue decline of 11.7%.  

Reported net revenue for the period was 186.4 GBP, down 14.9%.  

The company cited continuing “volatile global macroeconomic conditions,” general client caution and sluggish technology sector conditions.  



S4 Executive Chairman Martin Sorrell noted that the firm is “increasing our focus on margin improvement through greater efficiency, utilization, billability and pricing.”

He added that the company’s “financial performance will be significantly second half weighted reflecting both our normal seasonality and an expected improvement in market conditions.” 

The firm continued to cut staff through the quarter. Employees totaled 7,598 at the end of Q1 down 13% compared to the year-ago period and 1% lower than its 2023 year-end figure.  

Content practice organic net revenue for the first quarter was down 8.5% partly due to lower demand from some technology clients.  

The company’s data & digital media practice was also down 8.5% and the Technology Services practice first quarter net revenue was down 28.4%, reflecting lower activity with some key clients. 

By region the firm’s Americas operation was down 12.3% in the period, Europe, The Middle East & Africa was down 7.8% and Asia Pacific fell 13.4%.  

The company maintained its full-year outlook. As stated in March the company has not offered a specific net organic revenue target but acknowledged that it is expected to be down versus 2023 albeit “with a broadly similar overall level of operational” pre-tax earnings.     

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