S4 Capital Plc · LSE:SFOR
S4 Capital — Q3 2023 Earnings Presentation
16 slides from S4 Capital's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Trading Update
Q3 2023 Trading Update 9 November 2023 1 S4 Capital plc
Slide 2: Contents
Contents 1. Trading Update 2. Market Momentum 3. Client Analysis 4. Summary and Outlook 5. Q&A 6. Appendix S4 Capital plc 9 November 2023 2
Slide 3: Trading Update
Chapter 1 Trading Update 3 S4 Capital plc 9 November 2023
Slide 4: Financial Headlines
Financial Headlines Revenue Net revenue Profitability Q3: £245.9m Q3: £211.5m -18.1% reported -15.4% reported -13.0% like-for-like1 -10.0% like-for-like YTD: £763.0m YTD: £657.0m Headcount c.8,200, -9% vs Q2 2022 +2.2% reported +5.1% reported Anticipate strong Q4 driven by seasonal -3.1% like-for-li
Slide 5: Net revenue by practice and region
Net revenue by practice and region ／ Content’s Q3 trading conditions were difficult. Whilst there was some growth across the scaled and mid tier client base, demand was lower particularly in newer regional and local clients and from some clients in the technology sector ／ Data&Digital Media’s Q3 per
Slide 6: Market Momentum
Chapter 2 Market Momentum 6 S4 Capital plc 9 November 2023
Slide 7: 2023 More challenging growth in our addressable markets
2023 More challenging growth in our addressable markets Digital Media Spend is The 5 main platforms have Digital Transformation projected to grow at 8.9% grown ad revenue 7% YTD Service revenues at peers to $600m in 2023¹ and are forecast to grow projected to grow 2% in 10.6% to $420m in 2023 2023 a
Slide 8: Client Analysis
Chapter 3 Client Analysis 8 S4 Capital plc 9 November 2023
Slide 9: Our client portfolio
Our client portfolio YTD 2023 Client Categories YTD 2022 Client Categories 9 S4 Capital plc Chapter 3 - Client Analysis 9 November 2023
Slide 10: An attractive & growing client base
An attractive & growing client base 10 S4 Capital plc Chapter 3 - Client Analysis 9 November 2023
Slide 11: Summary and Outlook
Chapter 4 Summary and Outlook 11 S4 Capital plc 9 November 2023
Slide 12: Summary and Outlook
Summary and Outlook ／ Disappointing Q3 and YTD performance, below our expectation, reflecting challenging macroeconomic conditions and client fear of recession ／ Q3 net revenue decline of -10% like-for-like, YTD net revenue broadly flat ／ Solid growth YTD across scaled client base with top 20 client
Slide 13: Q&A
Chapter 5 Q&A 13 S4 Capital plc 9 November 2023
Slide 14: Appendix
Chapter 6 Appendix 14 S4 Capital plc 9 November 2023
Slide 15: Appendix | Additional information
Appendix | Additional information Guidance on adjusting items for 2023 Share Consideration Committed ⁄ Amortisation c.£50-55m ⁄ Issuance of deferred shares of c.1m shares in Q4 2023, c.35m in 2024 and ⁄ Share based payments c.£15m c.39m in 2025, totalling c.75m ⁄ Acquisition, restructuring and other
Slide 16: Thank you
Thank you 16 S4 Capital plc