M&C Saatchi posts profitability gain despite advertising revenue drop
By Felicia Nwosu
M&C Saatchi reported a 3.7% rise in like-for-like net revenue to £231 million in 2024, driven by strong performance in non-advertising divisions. However, economic pressures in key markets like the UK and Australia led to a 1.9% dip in advertising revenue.
Affirming to this development, Adnews in its report attested that the company’s operating profit climbed 5.2% to £35.2 million, aided by a global cost-efficiency drive. A strategic overhaul of its business model, from a decentralized to an integrated structure, yielded £10 million in annualized savings.
In a bid to enhance creativity and strengthen its market presence, M&C Saatchi invested in senior leadership, regional strategies, digital and data capabilities, and business development. The company noted a significant shift toward higher-margin services, with non-advertising specialisms now contributing 67% of net revenue, up from 60% the previous year.
Revenue from non-advertising sectors increased 6.7% to £153.7 million, fueled by demand from government and media clients. While advertising revenue saw strong gains in Europe and the UAE, economic slowdowns in Australia and the UK contributed to an overall 1.9% decline, bringing advertising revenue to £77.4 million.
Reflecting on the year’s performance, CEO Zaid Al-Qassab described 2024 as a pivotal period for the company. “Our strong financial results demonstrate the resilience of our business.Since Simon Fuller and I took on leadership roles, we have focused on laying a solid foundation for long-term profitable growth.”
He emphasized that the company’s blend of creative expertise, global reach, and specialized capabilities aligns with client needs. “With higher-margin services now making up two-thirds of our business, we are confident that our transformation strategy will continue to drive growth.”
Looking ahead, Al-Qassab acknowledged ongoing economic uncertainty but expressed confidence in meeting market expectations for 2025, citing the company’s diversified portfolio and strategic resilience
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