Revenue was down 19.3% reported to £198.4m, down 17% like-for-like, in the third quarter, with net revenue declining 15.2% on a reported basis, 12.6% like-for-like.

S4 Capital said foreign exchange rates, particularly between the dollar and pound, significantly impacted reported revenue and net revenue, with lower activity levels in technology services, primarily due to both a reduction in one of the company’s larger relationships, and lower revenues in the content practice also issues.

Content practice revenue was down 18.6% in the third quarter to £131m, with like-for-like down 16.4%, which the company said was “below our expectations” and reflected ongoing client caution and lower activity.

Reported third quarter net revenue was down 11.6% to £112.4m and 9.1% like-for-like for the content practice, and year-to-date reported revenue was down 17.2% to £410.4m and 15% like-for-like, with net revenue lower by 11.6% to £346.7m and 9.2% like-for-like.

Technology Services reported revenue was down 39.6% to £66.2m, like-for-like down 38.4%, while reported net revenue was down 39.5% to £66.2m, with like-for-like down 38.4%.

The Americas, the firm’s largest region, saw third quarter reported net revenue down 17.4% to £138.5m and 14.5% like-for-like.

Europe, the Middle East and Africa was flat in the third quarter, according to S4 Capital, with reported net revenue at £30.4m and like-for-like up 1.3%.

Asia Pacific had reported net revenue down 23% to £10.4m in the three  months to September 2024 and 21.2% like-for-like.

Sir Martin Sorrell, executive chairman at S4 Capital, said: “Trading in the third quarter reflected the continued impact of trends we saw in the first half, namely challenging global macroeconomic conditions and high interest rates, as well as some underperformance when compared to our addressable markets.

“These trends have impacted marketing spend by some technology clients and our Technology Services practice continued to be affected by a reduction in one of our larger client relationships, as previously flagged.

Sorrell added: “We remain confident in our strategy, business model and talent, which together with scaled client relationships position us well for growth in the longer term.

“We continue to capitalise on our prominent AI positioning and are seeing multiple initial AI related assignments as clients start to use our MonksFlow tools and our experience to implement applications. Our three newly introduced go-to-markets – Orchestration Partner, Real Time Brands and Glass Box Media – are all starting to resonate with clients.”