(Reuters) -M&C Saatchi lowered its annual profit and revenue outlook on Monday, after the U.S. government shutdown hit a significant business for the British advertising group during the fourth
M&C Saatchi Lowers Profit Outlook Due to US Shutdown
(Reuters) -M&C Saatchi lowered its annual profit and revenue outlook on Monday, after the U.S. government shutdown hit a significant business for the British advertising group during the fourth quarter.
Trading in the second half was hit by the longest government shutdown in U.S. history, hurting the company's Issues business, which focuses on communications related to political issues such as climate, health, human rights, and social justice.
The business accounted for about a quarter of like-for-like sales in 2024.
The ad group now expects like-for-like net revenue decline of around 7% for the year, with operating profit between 26 million pounds and 28 million pounds ($34 million and $36.7 million).
M&C had earlier indicated that like-for-like revenue for the year ending December 31 was expected to decline by a mid‑single digit percentage, with the group targeting full‑year profit broadly in line with the prior year.
The company on Monday also said it plans to launch as a share buyback programme of up to 5 million pounds over the next 12 months.
($1 = 0.7638 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
