**S4Capital plc Third Quarter Trading Update Summary (November 6, 2025)**
**Key Highlights**
1. **Financial Performance**
**Q3 2025**
Billings up 1.9% reported5.1% like-for-like.
Revenue down 3.4% reported1.0% like-for-like.
Net revenue down 6.9% reported4.4% like-for-likewith sequential improvement from Q2.
Marketing Services net revenue down 2.8% like-for-like
Technology Services down 16.5% like-for-like.
**Nine Months 2025**
Billings up 1.9% reported5.1% like-for-like.
Revenue down 11.1% reported8.4% like-for-like.
Net revenue down 10.8% reported8.2% like-for-like.
Marketing Services net revenue down 5.2% like-for-like
Technology Services down 29.6% like-for-like.
2. **Regional Performance**
**Americas** (80% of net revenue)Q3 net revenue up 1.6% like-for-like
nine months down 5.6%.
**EMEA**Q3 net revenue down 26.2%
nine months down 17.3%.
**Asia-Pacific**Q3 net revenue down 16.2%
nine months down 15.3%.
3. **Outlook**
Full-year 2025 like-for-like net revenue expected to decline by upper single digits.
Operational EBITDA target remains unchanged, broadly similar to 2024.
Net debt target for year-end£100–£140 million.
Potential for enhanced final dividend if second-half performance and liquidity targets are met.
4. **New Business and AI Focus**
Significant new business wins, including General Motors, Amazon, T-Mobile, and two unannounced US-based Global FMCG companies.
AI-driven initiatives improving visualisation, copywriting, and hyper-personalisation, with clients excited about cost savings and ROI.
Revenue model shifting from time-based to output-based, leveraging AI tools like Runway, Luma, and Unreal.
5. **Balance Sheet and Liquidity**
Q3 net debt at £151 million (1.8x EBITDA), up slightly due to dividend payments, restructuring costs, and FX headwinds.
Sufficient liquidity with long-dated debt maturities and covenant compliance.
6. **ESG Commitment**
Continued focus on people fulfilmentenvironmental responsibilityand transparency.
Maintained B Corp status and improved Ecovadis score.
7. **Strategic Focus**
Unitary digital transformation model resonating with clients, emphasizing "faster, better, cheaper, more."
Rebranded as Monks, with streamlined Marketing and Technology Services practices.
**Executive Commentary (Sir Martin Sorrell):**
Clients remain cautious due to global macroeconomic volatility, particularly in technology sectors.
AI adoption is accelerating, with significant opportunities for efficiency and growth.
Cost control and cash management remain priorities, with a focus on profitability and debt reduction.
**Conclusion**
Despite challenging market conditions, S4Capital is leveraging AI-driven innovation and cost restructuring to improve performance, with a focus on new business wins and operational efficiency. The company remains committed to its digital transformation strategy and long-term growth objectives.