(Reuters) -Martin Sorrell’s advertising group S4 Capital cut its annual revenue forecast for the fourth time this year and warned on its full-year profit on Monday, hurt by cautious spending by its clients and a slow ramp-up of new contracts and sales.
S4 Capital, which serves clients such as General Motors, Amazon, and T-Mobile, and earns almost half its revenue from the technology sector, is under pressure as these clients prioritize artificial intelligence investments over marketing spend.
The company, founded by Sorrell after he left rival WPP in 2018, now expects annual like-for-like net revenue forecast to be down by just under 10%, a revision from its previous forecast earlier this month of an upper single-digit decline.
S4 is now targeting annual operational earnings before interest, taxes, depreciation, and amortization of about 75 million pounds ($98.26 million), compared with analysts’ consensus of 81.6 million pounds, according to the company.
($1 = 0.7633 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Rashmi Aich)
