Sir Martin Sorrell’s S4 Capital admitted a “very mixed” first half as poor results dented its market cap by more than a quarter.

The business has cut more than five per cent of staff, almost 500 jobs, and suggested more redundancies are likely. “The Group continues to take action, especially in content, given the current market outlook,” per the results statement.

Net revenues at its content division fell on a like for like basis, with the firm reporting a “challenging” first half for the unit. Across the business, Asia Pacific was its worst performing region, something Michel de Rijk, its outgoing APAC boss, told Mi3 was closely linked to global tech firms "pulling back to the mothership" as Covid's impact proved hard to shake.

Global management underlined that view: Clients have been “cautious and very much focused on the short term,” per the firm, especially tech businesses.

S4 Capital reported operational earnings of £36.5m ($70.3m), down 30 per cent on a like for like basis.

The business anticipates a stronger second half as brands gear up for November ecom events and Christmas. Analysts at Citi suggested it would need a “robust” Q4.

That spurt will need to come from its traditional advertising and media business: S4 warned that while its technology services division "continues to perform strongly, growth in technology services is expected to moderate in the second half due to expected phasing of work with its larger clients and strong comparatives".

The company has updated its tagline, adding 'more', which it attributes to the volume and efficiency enabled by generative AI. It's now touting 'faster, better, cheaper, more'.