S4 Capital Plc · LSE:SFOR
S4 Capital — Q1 2024 Earnings Presentation
16 slides from S4 Capital's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Trading Update
Q1 2024 Trading Update 10 May 2024
Slide 2: Contents
Contents 1 Trading Update 4 Summary and Outlook 2 Market Momentum 5 Q&A 3 Client Analysis 6 Appendix S4 Capital plc Q1 2024 Trading Update 2
Slide 3: Trading Update
1 Trading Update S4 Capital plc Q1 2024 Trading Update 3
Slide 4: Q1 financial headlines and outlook
Q1 financial headlines and outlook Revenue Net revenue2 Net debt3 Q1 Q1 At 31 March 2024 £210.2m £186.4m £206m -19.7% reported -14.9% reported 2.2x leverage4 -16.6% like-for-like1 -11.7% like-for-like FY 2024 net debt expectation c.£150m – £190m 2024 Net revenue 2024 Operational EBITDA6 Practice out
Slide 5: Net revenue by practice and region
Net revenue by practice and region Change Change £millions Q1 2024 Q1 2023 Reported Like-for-Like1 • Net revenue decreased, -11.7%, in line with expectations Content 115.7 131.4 -11.9% -8.5% • Content saw some growth across scaled and portfolio Data&Digital Media 46.5 52.7 -11.8% -8.5% clients, but
Slide 6: Market Momentum
2 Market Momentum S4 Capital plc Q1 2024 Trading Update 66
Slide 7: 2024 strong growth in digital media, Tech Services flat
2024 strong growth in digital media, Tech Services flat Digital media spend Ad revenue growth – 5 main platforms Digital Transformation Service revenues at peers Growth in 20231 Q1 2024 2023 growth +7.8% +18% +5.2% Projected growth in 20241 2024 forecast2 2024 projected growth3 +6.9% to $552bn +12%
Slide 8: Client Analysis
3 Client Analysis S4 Capital plc Q1 2024 Trading Update 88
Slide 9: Client Analysis
Client Analysis Q1 2024 Client Categories Q1 2023 Client Categories • Technology 43% • Technology 44% • FMCG 11% • FMCG 11% • Financial 7% • Financial 12% • Auto 9% • Auto 5% • Retail 4% • Retail 4% • Media & Ent 4% • Media & Ent 4% • Fashion & Lux 7% • Fashion & Lux 5% • Agency 3% • Agency 3% • Oth
Slide 10: Client Analysis
Client Analysis Average revenue by client1 £m Q1 2024 Q1 2023 No of % of Cumulative No of % of Cumulative 14 £millions clients revenue % clients revenue % >£10m 3 31% 31% 4 35% 35% 12 £5–10m 4 11% 42% 4 10% 45% 10 £1–5m 21 21% 63% 28 24% 69% 8 £0.1–1m 195 26% 89% 203 20% 89% 6 4 2 0 Q1 2024 Q1 2023
Slide 11: Summary and Outlook
4 Summary and Outlook S4 Capital plc Q1 2024 Trading Update 11 11
Slide 12: Summary and Outlook
Summary and Outlook • Q1 trading as anticipated, reflecting continuing client • Justin Billingsley appointed Chief Growth Officer caution and a reduction in activity with some key focussing on Content and DDM Technology Services clients • We have continued to make progress in the three • Q1 net reve
Slide 13: Q&A
5 Q&A S4 Capital plc Q1 2024 Trading Update 13 13
Slide 14: Appendix
6 Appendix S4 Capital plc Q1 2024 Trading Update 14 14
Slide 15: Appendix: guidance on adjusting items, share count, invested capital
Appendix Guidance on adjusting items Weighted average share count Cash contingent consideration for 2024 Expected weighted average share count for 2024 of Cash contingent consideration payments of Amortisation c.675m1 c.£10m settled in Q1 2024 and c.£50m-£55m Expected weighted average share count fo
Slide 16: Thank you
Thank you S4 Capital plc Q1 2024 Trading Update 16 S4 Capital plc Q1 2024 Trading Update 16