S4 Capital Plc · LSE:SFOR
S4 Capital — Q3 2024 Earnings Presentation
16 slides from S4 Capital's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Trading Update
Q3 2024 Trading Update 7 November 2024
Slide 2: Contents
Contents 1 Trading Update 4 Summary and Outlook 2 Market Momentum 5 Q&A 3 Client Analysis 6 Appendix S 4Capital plc Q3 2024 Trading Update 2
Slide 3: Trading Update
1 Trading Update S 4Capital plc Q3 2024 Trading Update 3
Slide 4: Q3 financial headlines
Q3 financial headlines Revenue Net revenue2 Profitability Q3: £198.4m Q3: £179.3m -19.3% reported -15.2% reported -17.0% like-for-like1 -12.6% like-for-like Continued focus on managing the cost base and driving efficiency across the YTD: £620.9m YTD: £555.4m Company -18.6% reported -15.5% reported -
Slide 5: Net revenue by practice and geography
Net revenue by practice and geography • Content’s net revenue in Q3 Change Change Q3 Q3 Change Like-for- YTD YTD Change Like-for- reflected ongoing client caution £millions 2024 2023 Reported like £millions 2024 2023 Reported like and lower activity with some of our Content 112.4 127.2 -11.6% -9.1%
Slide 6: Market Momentum
2 Market Momentum S 4Capital S4 Capitalplc plcQ3 Q12024 2024Trading TradingUpdate Update 66
Slide 7: 2024 Addressable Markets
2024 Addressable Markets 2024 strong growth in digital media, Tech Services flat Digital media spend Ad revenue growth at 5 main platforms Digital Transformation Service revenues at peers projected growth in 20241 Projected growth in 2024 2 projected growth in 2024 3 +8.7% to $564bn +15% to $497bn -
Slide 8: Client Analysis
3 Client Analysis S 4Capital S4 Capitalplc plcQ3 Q12024 2024Trading TradingUpdate Update 88
Slide 9: Our Client Portfolio
Our Client Portfolio YTD 2024 Client Categories YTD 2023 Client Categories • Technology 44% • Technology 43% • FMCG 9% • FMCG 9% • Financial 7% • Financial 13% • Auto 8% • Auto 8% • Retail 5% • Retail 5% • Media & Ent 3% • Media & Ent 4% • Fashion & Lux 8% • Fashion & Lux 5% • Agency 2% • Agency 3%
Slide 10: An attractive & prominent client base
An attractive & prominent client base Average revenue by client £m YTD 2024 YTD 2023 40 No of % of Cumulative No of % of Cumulative £millions clients revenue % clients revenue % 35 >£10m 9 45% 45% 12 55% 55% 30 £5–10m 7 7% 52% 12 12% 67% 25 £1–5m 66 22% 74% 57 15% 82% £0.1–1m 390 19% 93% 349 15% 97%
Slide 11: Summary and Outlook
4 Summary and Outlook S 4Capital plc Q3 2024 Trading Update 11
Slide 12: Summary and Outlook
Summary and Outlook • Q3 net revenue decrease of -12.6% like-for-like, • Given slower than expected trading in Q3 and current reflecting lower activity in Content and an expected client activity levels, we now expect that like-for-like net reduction with one of our larger Technology Services revenue
Slide 13: Q&A
5 Q&A S 4Capital S4 Capitalplc plcQ3 Q12024 2024Trading TradingUpdate Update 13 13
Slide 14: Appendix
6 Appendix S 4Capital S4 Capitalplc plcQ3 Q12024 2024Trading TradingUpdate Update 14 14
Slide 15: Guidance on adjusting items, share count and 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