M&C Saatchi Group looks to save costs for improved full-year profit margin
M&C Saatchi Group has flagged cost-saving measures in the latest trading update, as the company looked to deliver higher operating margins for 2023.
In an announcement before the company’s annual general meeting yesterday, M&C Saatchi Group said the “challenging trading environment” had continuously influenced its “pace of business” into the second quarter, especially for advertising and media operations.
In its full-year results for 2022, M&C Saatchi Group posted a headline PBT of £31.8 million (A$59.2 million) and net revenue of £2.71 billion (A$5.05 billion), both up year-on-year.
The company expected the headline PBT for 2023 to be between £36.5 million (A$68.03 million) and £38 million (A$70.82 million), a 15% to 19% increase from 2022.
Despite an expected decline in like-for-like full-year net revenue, the group maintained that there will be headline profit before tax (PBT) growth and improved operating margin. The PBT was said to be weighted towards the second half.
“The Company is benefiting from its diverse range of businesses, with the Passions, Consultancy and Issues specialisms continuing to perform strongly,” the announcement read.
In Australia, M&C Saatchi Sport & Entertainment falls under the Passions specialism, while Re and Yes Agency fall under consultancy.
The advertising specialism contributed to the bulk of net revenue in 2022 (£1.24 billion or A$2.31 billion), followed by media (£34.2 million or A$63.74 million) and issues (£42.2 million or A$78.66 million).
M&C Saatchi Group’s local CEO, Justin Graham, added the remits of the global head of advertising network in February this year. He will split his time between Sydney and global M&C Saatchi headquarters in London.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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