Finance
Ad group M&C Saatchi warns of profit hit from US shutdown
Published by Global Banking and Finance Review
Posted on November 24, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 24, 2025
1 min readLast updated: January 20, 2026
M&C Saatchi warns of a profit hit due to the US government shutdown affecting its Issues business, which focuses on political communications.
(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)
Revenue is the total income generated by a company from its business activities, typically from sales of goods or services, before any expenses are deducted.
A share buyback is when a company purchases its own shares from the marketplace, reducing the number of outstanding shares and often increasing the value of remaining shares.
Operating profit is the income a company earns from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of the company's operations.
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