M&C Saatchi shares fall on lower first-half revenue

M&C Saatchi reported a decline in like-for-like net revenue for the first half of the year, leading to downward pressure on its shares. The advertising and communications group's performance reflects broader market trends where large advertisers have trimmed or delayed campaigns due to geopolitical uncertainty and rising energy costs.

Despite the revenue dip, management expressed confidence in achieving approximately 80% cash conversion and a return to growth. Financial data for the period showed a negative return on equity of 6.04% and a negative net margin of 0.64%.

In related analyst activity, Berenberg Bank lowered its target price for M&C Saatchi shares from GBX 195 to GBX 175, while maintaining a ‘buy’ rating. The stock currently holds an average rating of ‘Moderate Buy’ among analysts.