M&C Saatchi Australia Reports 31.9% Revenue Collapse in FY2025

M&C Saatchi Australia recorded a 31.9% net revenue collapse in FY2025, making it the single largest drag on the London-listed group's global performance, according to the company's full-year results filed with the London Stock Exchange.

Australia Isolated as Primary Source of Group Underperformance

The scale of the Australian decline is visible in how the parent company reported its numbers. Group like-for-like net revenue fell 7.3% when Australia was included, but only 3.1% when it was excluded. The Australian operation accounted for 83% of the Consulting division's 18.8% global decline and drove 62% of the APAC region's 22.3% net revenue drop.

Structural Shift: How Australian Media Stocks Signal Wider Disruption

Australian media stocks have lost 60% since 2022, signaling structural industry decline. CMOs must recalibrate earned media strategies as journalist talent pressure and audience fragmentation reshape regional media landscapes.

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Group statutory operating profit fell 54.7%, from £10.2 million to £22.5 million, partly due to £9.1 million in one-off restructuring costs. These included the closure of the Bohemia media buying unit in Australia in September 2025. Basic earnings per share declined 44.7%, from 17.0p to 9.4p. Group like-for-like operating margin contracted to 12.2%, down 310 basis points year-on-year.

A January 2026 trading update had already flagged Australia as the primary problem, forecasting approximately 7% like-for-like net revenue decline for the full year, or approximately 2.5% excluding Australia.

Account Losses Signal Structural Shift Toward Consulting-Led Rivals

The financial deterioration follows a sustained run of client departures. M&C Saatchi Australia lost the Tourism Australia creative account, valued at A$65 million over six years, to Accenture Song's Droga5. The same competitor subsequently won the Optus account from M&C Saatchi.

Origin Energy and ANZ also departed. The agency declined to repitch for the Australian Retirement Trust, and Commonwealth Bank of Australia has since entered the market for a new agency partner. By contrast, the group's overall client retention rate held at 94% in FY2025, underscoring that Australia's account losses represent an outlier within the broader network.

The Bohemia closure is notable for another reason. While M&C Saatchi's global Media division grew 11.5% to £25.2 million in FY2025, the Australian operation shut down its media buying capability at precisely the moment integrated media-creative offerings were gaining ground with large clients.

From 450 Staff to 'Basket Case': A Three-Decade Arc

M&C Saatchi Australia was founded over 31 years ago by Tom Dery and Tom McFarlane. The agency grew to more than 450 people across 16 creative teams, with offices in Auckland, Fiji, Hong Kong, and Singapore. It secured Qantas as a founding client when the global network launched in 1995.

M+C Saatchi CEO Steps Down After 22 Months; Australia Drives 7% Revenue Slide

M+C Saatchi's CEO departs after 22 months as Australian operations drive a 7% revenue decline. The leadership shake-up signals deeper challenges for the global advertising network.

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Former employee Kenny Hill described the founding duo's competitive drive plainly: "Together, the two Toms were a great white shark. They were very aggressive pursuers of accounts."

New CEO Dani Bassil, who took over in August, inherited what industry observers described as "a basket case." One anonymous observer noted: "Up until Dani joined, the agency had largely just maintained the status quo. All agencies know that clients routinely put their accounts up for pitch, but little had been done to build new business."

Bassil has stated her intention to rebuild: "We have invested in a new leadership team to reinvigorate this incredible brand and move it into the future." Her stated plans include a new Connections Strategy unit, investment in AI tools, and new leadership hires. Industry observers note the absence of a unifying creative vision as the critical remaining gap.

The group ended FY2025 with net cash up 12.7% to £13.3 million, suggesting the parent retains financial flexibility even as the Australian operation continues to weigh on overall results.