S4 Capital Plc (SCPPF) Interim Q2 2025 Earnings Call Transcript

Martin Sorrell
Executive Chairman

So good afternoon from London. Good morning in New York, wherever you are. I’m joined in London by Radhika, our CFO; Scott Spirit on my right, Chief Growth Officer; and Jean-Benoit, our Chief Operating Officer on the extreme left. We have Bruno Lambertini, who runs our Marketing Services business from Miami. I think he’s still in Miami. Thanks for getting up relatively early this morning, Bruno, for being with us on this call and where’s to heart is in Amsterdam.

So we’re going to cover the results. Radhika is going to cover the results for the first half of 2025, then Scott is going to talk a little bit about what we see going on in the market and with clients. Wes is going to cover artificial intelligence and its impact on our business currently and in the future. And then I’ll just do a brief summary and outlook before we take any questions if there are any.

So Radhika, over to you.

Radhika Radhakrishnan
Group CFO & Director

Thank you, Martin. Good morning, good afternoon, and thank you for joining us today. I will start with the financial headlines for 2025. Performance in the first half was impacted by volatile global macroeconomic conditions, tariff uncertainties and larger tech clients, which represent almost half of our revenue, continuing to prioritize capital expenditure on expanding AI capacity.

Net revenue was GBP 328.2 million, down 10% on a like-for-like basis and 12.7% on a reported basis. Operational EBITDA was GBP 20.8 million, delivering a 6.3% margin in the period. Adjusted operating profit