Martin Sorrell’s S4 Capital says the digital advertising company has emerged from the depths of the pandemic with strong revenue growth.
The second half of the year started well with July like-for-like gross profit up 18.2%.
In the six months to June, like-for-like billings were up 12.7% to £260.4 million. Revenue was £141.3 million, up 6.9% like-for-like. Gross profit of £124.0 million was up 12.2% like-for-like.
The company, releasing its first half results, believes it has an even stronger fighting chance of doubling organically over the three years 2020-22.
“The tragedy of covid-19 has only accelerated the speed of digital transformation and disruption at consumer, media and enterprise levels,” says Sir Martin, the founder of WPP, the world's biggest advertising group.
“These results confirm that S4 Capital is currently in a growth sweetspot and that its digital only, faster, better, cheaper, unitary, holy trinity model, which combines first party data with digital content, data and digital media, is migrating from brand awareness and trial to conversion at scale.
“After less than two years as a listed company and with a market capitalisation of around $US2.5 billion, which is well in to the top 200 FTSE companies, we are now in a position to build stronger value-adding relationships with tech, healthcare, financial and FMCG clients amongst others and with a strong and liquid balance sheet in a great financial place to expand through further combinations, which will add to our data, content, digital media and technological capabilities.”
The first half numbers:
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