UK
Sir Martin Sorrell’s S4 Capital Revenue Falls 12.7%, H1 Loss Hits £22.3 Million: S4 Capital, the digital advertising group founded by Sir Martin Sorrell, reported steep declines in the first half of 2025. The company saw both revenue and profitability tumble, exposing deep challenges in its global operations.
For the six months ending June 30, 2025, S4’s net revenue dropped 12.7% to £328.2 million, while total revenue slid 14.7% to £360.4 million. This fall was largely driven by cautious spending from major technology clients, which still account for more than 40% of the firm’s business. In addition, weak demand in Europe and Asia-Pacific added to the slowdown.
Moreover, operating profitability weakened significantly. Operational EBITDA declined nearly 31% to £20.8 million, pushing margins down to 6.3% from 8% a year ago. Net losses deepened to £22.3 million, compared to £13.7 million in the same period last year. Basic loss per share widened to 3.3p from 2.0p, while adjusted earnings per share plunged 83% to just 0.2p.
Transitioning to business segments, the Technology Services division proved to be the weakest performer. Revenue fell more than 35%, while EBITDA collapsed 54% to £2.6 million. At the same time, the Marketing Services arm contracted, with revenue falling 6% and profitability down nearly 16%.
Geographically, S4 Capital reported declines in all major regions. Net revenue dropped 12.2% in the Americas, 13.4% in EMEA, and 18.4% in Asia-Pacific. Only Latin America and China displayed some resilience.
Despite these challenges, net debt improved to £145.9 million from £182.9 million last year. Still, the outlook remains grim. Staff cuts of nearly 9% year-on-year highlight management’s push to cut costs. A major restructuring programme is also underway to align the staff-to-revenue ratio with industry standards.
Executive Chairman Sir Martin Sorrell pointed to “volatile global macroeconomic conditions” and tariff-related uncertainty as key pressures. Although he expressed confidence in a stronger second half, the severity of the downturn has raised serious concerns among investors and analysts.
