Is Sir Martin Sorrell nonetheless one for the onerous yards? Or, certainly, the lengthy haul?
That appears like the duty at S4 Capital which has simply produced disappointing second quarter figures following quite a few reverses.
S4 says: “Web income within the second quarter was beneath price range with Could and June particularly, reflecting the difficult macroeconomic circumstances and purchasers, particularly these within the know-how sector, remaining cautious and really centered on the quick time period.”
Nearly an echo of the Interpublic account of its numbers and, just like the a lot bigger IPG, S4 has cuts its forecast for the 12 months to 2-4% progress from a bullish 6-10%. S4’s shares have taken a pasting – as have its friends – and Sorrell’s newest creation is now valued at simply over £600m.
Content material is now reported to be the weakest performer, worrying for S4 as this, through MediaMonks, has all the time been the motive force of its spectacular progress. The corporate just isn’t practically so large in media, nonetheless largely the protect of the standard advert holding teams.
A lot of the advert holding corporations, together with S4, have wager the ranch of changing into hand maidens to the large tech teams. That is backfiring as they in the reduction of. We’ll lean extra this week because the likes of Alphabet (Google) and Meta (Fb) report.
Publicis, which is performing greatest, is barely completely different because it now has its personal, if not walled, then hedged knowledge backyard in Sapient and Epsilon.
S4 Capital’s seemingly relentless rise to problem the giants of adland now seems to be markedly tougher. As do among the selections going through Sorrell, notably succession.
