Credit: insung yoon via Unsplash
M+C Saatchi reported a sharp fall in both revenue and profits in the year to December with the Australian business an outsized black spot on the global business.
Global like-for-like net revenue fell 7.3% to £204.7 million and operating profit was down 26.1% to £24.9 million.
Australia ended the year in a 31.9% hole. Without Australia, global revenue would have been down just 3.1%.
M+C has also been spending millions restructuring in Australia, according the documents lodged with the stock exchange. Ongoing business restructuring is marked at £3.766 million.
The media buying business in Australia was closed in September 2025.
The company said Europe and the US are strong, the UK is weaker in a subdued environment and Australia remains “very challenging”.
On the advertising side, like-for-like group net revenue was down 8.9% to £68.5 million, largely driven by Australia.
Excluding Australia, advertising would have been down by only 1%.
The company said macro conditions were very challenging in Australia, resulting in significant revenue shortfall due to client caution around campaign spend, particularly among consumer-facing businesses.
“These declines more than offset continued growth in the US and Europe, which continue to show progress,” M+C Saatchi said.
The outlook for 2026 remains challenging, with continued macro volatility and subdued market conditions offsetting stronger demand in Europe and the US.
“It is my privilege to lead this world famous company after assuming the role of executive chair in early April,” said Heather Rabbatts.
“Our 2025 financial performance was impacted by the tough market context and the board is clear on the action that the business needs to take; our focus will be to simplify the businesses, to refine our go-to-market offer and to unlock the intrinsic value of the company.
“Whilst we expect continued market uncertainty, we are confident in targeting net revenue growth and operating profit growth in 2026, in line with current market expectations.
“With a unique market position, a deep understanding of our clients’ business, broad expertise across both government and commercial sectors and specialised data-driven systems, the board believes that the company is well-positioned to create value for shareholders.”
M+C said March quarter trading has been in line with expectations despite continued tough macro conditions.
For 2026, the company is targeting net revenue growth, in line with market estimates, driven by positive momentum from the Issues and Media specialisms and supported by regional growth in the US and Europe.
However challenges remain. The conflict in the Middle East is likely to significantly impact the company’s sport and entertainment and consumer-facing business.
M+C doesn't plan to pay dividends this year. It will put these funds into an enhanced share buyback program.
Dame Rabbatts became executive chair to fill the void of Zaid Al-Qassab who left after less than two years after taking the role of CEO.
The departure, widely foreshadowed, was by "mutual agreement" and followed a profit warning.
The full year numbers:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.