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S4 Capital Reports 11.4% Revenue Decline as Tech Clients Shift Budgets

Sir Martin Sorrell’s firm maintains full-year guidance despite global economic challenges and reduced client spending on marketing.

Sir Martin Sorrell founded S4 Capital following his departure from WPP after more than three decades

Overview

  • S4 Capital's Q1 2025 net revenue fell 11.4% year-over-year to £148.3 million, driven by technology client caution and a key client’s reduced spending.
  • Revenue from technology services dropped significantly to £15.4 million from £24.2 million in the same period last year.
  • The firm attributed ongoing challenges to global macroeconomic volatility, including escalating US tariffs and trade tensions under President Trump.
  • Despite the downturn, S4 Capital reiterated its full-year guidance, expecting net revenue and operational EBITDA to remain consistent with 2024 levels.
  • The company has implemented cost-cutting measures, including a 7% workforce reduction, and aims to reduce net debt to £100–140 million by year-end.