Australian operations of publicly-traded M+C Saatchi struggle with financial profitability
M+C Saatchi Faces Challenges, Announces Changes and Acquisitions
In the dynamic world of global communications, M+C Saatchi, a London-listed agency, has experienced a shift in its business operations. The first half of 2025 has seen the appointment of a new CEO, Neil Ray, to lead the Australian branch of the agency. However, the company's net revenue for this period has decreased by 5.1%, reaching £103.8 million.
Zaid Al-Qassab, the CEO of M+C Saatchi, attributed the decline to market conditions and geo-political tensions. In response, the company has implemented changes, including new leadership, the closure of an unprofitable full-service media business, and restructuring, aiming for £12 million in annualized cost savings.
Despite the challenges, M+C Saatchi continues to see positive momentum in growth engines such as Issues, Media, Europe, and the Middle East. The company has also accelerated transformation cost savings to maintain investment in higher margin growth areas.
The agency reported a 36% decrease in profit before tax for the first half of 2025, amounting to £10.3 million. As a result, the company now expects full-year revenue to decrease around mid-single digits, while it aims for a full-year profit that is in line with the prior year.
In an effort to expand its presence in the Middle East, M+C Saatchi has acquired United Arab Emirates-based sports agency Dune 23. This acquisition brings M+C Saatchi's headcount in the Middle East to over 160.
The share price of M+C Saatchi, which peaked in 2018 at 412p, has since declined and is currently sitting at 158p. The share price declined from its close yesterday, which was 167.7p, possibly reflecting the company's recent challenges.
It's worth noting that the everywoman in Technology Awards are open for nominations, although this fact is not directly related to M+C Saatchi. The agency, which floated over two decades ago in 2004, offers a wide range of data-led services across brand strategy, advertising, digital marketing, PR, growth strategy, and design.
M+C Saatchi attributed the decline in revenue and profit to 'Australia weakness' and 'macro-driven softness' in Q2. Excluding Australia, the company would have been broadly flat for the first half of 2025. The agency continues to strive for improvement, aiming to deliver on improving pipeline momentum in the second half, despite continued macro uncertainty.
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