M+C Saatchi has reported a sharp drop in revenue and profits for the year to December, with its Australian business emerging as a major drag on global performance.
Global like-for-like net revenue fell 7.3% to AUD$386.0 million, while operating profit dropped 26.1% to AUD$47.0 million.
Australia is the weak spot
Australia ended the year down 31.9%, significantly weighing on group results. Without the local market, global revenue would have declined just 3.1%.
The company described conditions in Australia as “very challenging”, citing client caution around campaign spend, particularly among consumer-facing businesses.
On the advertising side, group net revenue fell 8.9% to AUD$129.2 million, largely driven by the Australian business. Excluding Australia, that decline would have been just 1%.
Restructuring underway
M+C Saatchi has been investing heavily in restructuring its Australian operations, with AUD$7.1 million allocated to ongoing changes.
As part of that reset, the agency closed its media buying business in Australia in September 2025.
While Australia struggled, the company said Europe and the US delivered stronger results, with the UK facing softer conditions in a subdued market.
“These declines more than offset continued growth in the US and Europe, which continue to show progress,” the company said.
Outlook remains uncertain
Executive chair Dame Heather Rabbatts said the company is focused on simplifying operations and refining its go-to-market strategy.
“Our 2025 financial performance was impacted by the tough market context, and the board is clear on the action that the business needs to take; our focus will be to simplify the business, to refine our go-to-market offer and to unlock the intrinsic value of the company,” she said.
Despite ongoing macro uncertainty, M+C Saatchi is targeting net revenue and operating profit growth in 2026, supported by momentum in its Issues and Media divisions and stronger performance in the US and Europe.
“With a unique market position, a deep understanding of our clients’ business, broad expertise across both government and commercial sectors and specialised data-driven systems, the board believes that the company is well-positioned to create value for shareholders.”
However, the company flagged ongoing risks, including global market volatility and geopolitical tensions, which could affect its sports, entertainment, and consumer-facing businesses.
CEO ANZ responds
Dani Bassil
Dani Bassil, CEO ANZ M+C Saatchi, said 2025 was challenging with the loss of Optus and the sunset of Bohemia prior to her commencement.
“We have invested in a new leadership team with myself, Anita Zanesco and Simon Wassef coming into the agency to reinvigorate this incredible brand and move it into the future.”
Bassil added that they are actively investing in talent, tech and AI, with the appointment of Sophie Gallagher, who leads the Connections Strategy unit; Rhian Mason, who heads the Passions and PR team; and the most recent hire, Jack Playfair, to head Sport & Entertainment into its new era.
“We’ve invested heavily in AI and tech, working across the board with 20 AI tools making what we do faster and smarter,” she said. “But most importantly we are attracting the industry’s best talent into this storied agency and we’re having a brilliant time working towards new growth and incredible work.”
Leadership changes
Rabbatts stepped into the executive throne earlier this month, following the departure of former CEO Zaid Al-Qassab, who left after less than two years amid a profit warning. The departure was described by the company as a mutual agreement and follows recent profit pressure and ongoing concerns about trading performance.
The company also confirmed it will not pay dividends this year, instead redirecting funds into an expanded share buyback program.
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