M&C Saatchi Sees Momentum with 2024 Interim Results

M&C Saatchi Group is riding high as it releases its interim results for the first six months of 2024. With like-for-like net revenue up 6% compared to the first half of 2023 and its operating profit up 40% from £12.2m to £17.1m, CEO Zaid Al-Qassab has much to feel good about.

This growth in revenue has been driven by 7% growth in Non-advertising specialisms, while advertising grew 6%. Reflecting the diversity of the group, the growth has a good regional spread too with strong regional performances from the UK (+12.9%), Europe (+16.7%) and the Middle East (+47.6%). 

Meanwhile, the profitability has also been aided by £4.5m of savings in the first half of 2024, which the group predict will reach £10m by the end of the year. However, despite these cuts, they say that they are investing in ensuring that the company is future-ready and in ‘reinforcing creativity’, with the appointment of high-profile joint chief creative officers (Rob Doubal and Laurence ‘Lolly’ Thompson), global head of passions and PR (Robin Clarke), and the internal promotion of the UK Group CEO. According to the results statement, their new structure with centralised services ‘frees up creativity, and we are developing a culture which preserves our entrepreneurial spirit’ while a democratised approach to data and tech is ‘bringing several new products to market and for internal use, including those powered by AI’.

Zaid Al-Qassab, chief executive officer, said: "I am delighted to present this strong set of results, my first as CEO, which demonstrate the benefits of our ongoing transformation and diversity of our specialisms. Whilst preserving creativity at the heart of all we do, and leveraging the power of our global brand, we are creating a more agile, integrated, regional-first operating model which focuses on growth.

"My first impressions of the Group are incredibly positive: from the diversity of the businesses, operating from twenty-three geographies, the breadth of our capabilities, and the fantastic global brand of M&C Saatchi, to the creative and talented minds delivering inspiring work and outstanding service to our clients.

"We continue to make great progress in building a strong platform to deliver sustainable organic growth through our self-help initiatives and wider transformation. Our increasingly diversified revenue provides greater resilience against macro volatility, and our higher-margin businesses continue to be our highest growth contributors. Whilst there is always more to do, we are excited about the further potential we can unleash.

"Looking forward, despite continued volatility within our markets, we are confident that we are on track to deliver against market expectations for FY 2024, whilst noting the tougher second half comparators. We will continue to deliver on our cost saving programme whilst also making strategic investments in the second half of the year to underpin our ambition of long-term sustainable growth and delivering strong returns for shareholders."