Sir Martin Sorrell's S4 Capital posted another surge in revenue, fueled by major client wins, keeping the self-described new age/new era digital advertising and marketing services company on track to double in size by 2021.
The company posted a statutory loss for the June first half of GBP8.8 million on the back of one-off costs, including acquisitions.
But billings rose 44.4% to GBP184.23 million, revenues 41.6% to GBP87.97 million as the company puts revenue growth ahead of net profit.
Sorrell, who launched S4 last year after he left WPP, the company he founded, says the client roster continues to strengthen in technology and fast moving consumer goods (FMCG),
High profile cliet wins in the first half include Procter & Gamble, Nestlé, Coca-Cola, Sprint, Bayer, ASICS, Vodafone NZ, SoFi and Lavazza
The company says the second half is targeted to be even stronger and has started well. Pro-forma revenue was up 67.6%.
“These results confirm the power and relevance of the faster, better, cheaper, digital-only unitary advertising model, with first party data fuelling content and programmatic," says Sorrell.
"Now the task is to build significant scale organically, by broadening and deepening existing and new client relationships and adding resources through merger and acquisition.”
He says there has been strong individual content practice and programmatic practice client development in FMCG, pharmaceutical, media, financial services, telecommunications, hospitality, retail, sport and technology.
Significant development continues at Google, HP, Netflix, Uber, Merck, Mondelēz, Electrolux, Blue Nile and Nationwide, he says.
Sorrell says S4 is increasingly being included in a number of major industry reviews, reflecting the client interest in the new era, new age agency consultancy model.
The June half numbers:
Gross Profit by Geography
- Americas (68% of total) was GBP47.41 million, up 42.9% from GBP33.17 last year.
- EMEA (24% of total Gross Profit) was GBP16.80 million, up 27.1% from GBP13.22 million.
- Asia Pacific (8% of total) was GBP5.98 million, up 152.4% from GBP2.37 million last year.
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