S4 Capital, Martin Sorrell's pure play digital advertising company, has issued its second profit warning in a month.
The company had reviewed financial results for October and the third quarter revised forecast for 2025, which show a decrease in net revenue versus the forecast.
Full year like-for-like net revenue is now expected to be down by just under 10%.
Operational EBITDA (earnings before interest, taxes, depreciation and amortisation) is now forecast at £75 million, below the current market consensus of £81.6 million.
“This is mainly as a result of lower project-based revenue, continued client caution and a slower ramp up of our new business wins than expected,” S4 said in a statement to the London Stock Exchange.
“Despite this, our liquidity continues to improve more than anticipated and our targeted range for the year end net debt remains £100 million to £140 million.”
Earlier this month, S4 said full year revenue would fall by high “single digits” as clients remain “cautious”.
S4 reported September quarter billings up 1.9% but revenue still down 1% on a like-for-like basis.
Another global advertising group, M+C Saatchi, earlier this week downgraded its profit outlook again, blaming the “unprecedented” US government shutdown, the longest in history.
The group said this had affected its Issues specialism which is a significant contributor to the company's December quarter revenue and profit.
M+C now expects a like-for-like net revenue to drop by about 7%, or about 1.5% excluding Australia which has been identified as a poor performer.
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