M&C Saatchi Reports First-Half Loss

M&C Saatchi, a prominent UK advertising company, has announced a first-half pre-tax loss due to increased charges and lower revenue. The company had previously indicated this outcome in June and cites a challenging macro environment as a key factor.

For the period ending June 30, M&C Saatchi incurred a pre-tax loss of £5.06 million, a significant decline from the profit of £305,000 in the same period last year. Despite a slight decrease in revenue to £216.7 million from £221.7 million, the company noted that it is marginally ahead of its performance at this time last year and has already secured 85% of its expected full-year revenue.

During the first half of the year, M&C Saatchi's headline operating profit margin was 8.3%, a marked decrease from the 14.0% achieved in the previous year. However, the second quarter saw an improvement with a profit margin of 12%. The company is optimistic about the second half of the year, mentioning good margin momentum and an accelerated new operating model.

Zillah Byng-Thorne, Chair of M&C Saatchi, expressed caution regarding ongoing economic headwinds but emphasized the company's focus on growth, execution, and efficiency. By prioritizing connectivity within their business, elevating their highest-margin ventures in resilient segments, and practicing rigorous cost management, they aim to navigate these challenging times successfully.