M+C Saatchi's Australian branches experience dwindling profitability, as indicated by financial reports.
M+C Saatchi Faces Challenges but Remains Optimistic
In the dynamic world of global communications, M+C Saatchi, a London-listed agency, has faced a series of challenges in recent times. The share price of the company peaked at 412p in 2018 but has since declined, currently sitting at 158p.
The first half of 2025 saw a 36% decrease in profit before tax for M+C Saatchi, with the figure standing at £10.3 million. The company attributes this decline to 'Australia weakness' and 'macro-driven softness' in Q2. Excluding Australia, however, the company would have had broadly flat results, indicating strong underlying business fundamentals.
In an effort to turn things around, M+C Saatchi has taken steps to restructure its Australia business. This includes new leadership, the closure of an unprofitable full-service media business, and restructuring, aiming for £12m of annualised cost savings.
The agency's net revenue also decreased by 5.1% to £103.8m during the same period. However, M+C Saatchi remains focused on maintaining its investment in higher margin growth areas to counteract the macro uncertainty in the second half.
In a positive move, M+C Saatchi has acquired United Arab Emirates-based sports agency Dune 23, aiming to strengthen its presence in the Middle East and increase its headcount in the region to over 160. The company continues to see positive momentum in its growth engines, including Issues, Media, Europe, and the Middle East.
Zaid Al-Qassab, CEO of M+C Saatchi, stated that the company has been affected by market conditions and geo-political tensions, particularly in Australia. Dani Bassil, the CEO of M+C Saatchi Group AUNZ in 2025, has been appointed to lead the restructuring efforts Down Under.
Additional Information
The everywoman in Technology Awards are now open for nominations. A startup launched by Google DeepMind researchers has raised funds, but there is no direct connection to M+C Saatchi in this paragraph.
Looking ahead, M+C Saatchi is targeting full-year profit that is expected to be in line with the prior year. The group now anticipates a mid-single-digit decrease in full-year revenue. Despite the challenges, the company remains optimistic about its future and its position in the global communications industry. The share price of M+C Saatchi decreased from its close yesterday, which was 167.7p.
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