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British advertising group M&C Saatchi warned on Monday that the Middle East conflict is likely to significantly impact its sport, entertainment and consumer-facing business, while forecasting 2026 operating profit in line with market expectations.
The company struggled last year with weak client spending and delayed contract signings linked to the US government shutdown, prompting it to restructure its business to offset pressure in a challenging global environment for ad firms.
The ad group said first-quarter trading was in line with expectations. Its like-for-like operating profit dropped 26.1% to 24.9 million pounds ($33.6 million) in 2025, hurt by weak macroeconomic conditions and the U.S. government shutdown in the fourth quarter.
Analysts expect operating profit for fiscal 2026 to be 28.7 million pounds, according to a company-complied consensus.
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