Sir Martin Sorrell's new marcoms business S4 Capital has reported revenue of EUR 29.3m (£26.2m) in the three months ended 30th September: 45% more than that of its main trading firm MediaMonks in the prior year period.
Six weeks after quitting WPP, founder Sorrell (pictured) became head of shell company Derriston Capital, which has since been renamed S4 Capital in a reverse takeover deal, and now acts as a vehicle to buy marketing firms. Its first acquisition, of Dutch digital production company MediaMonks, took place in July, and S4 was publicly listed on the London Stock Exchange in September. Among the many rumours of an impending second acquisition, S4 is currently said to be in a bidding war with China's data technology company BlueFocus to acquire programmatic buying firm MightyHive.
During the third quarter, like-for-like revenue was up almost 46%, while gross profits rose 32% to EUR 20.4m (£18.3m). For the year to date, revenue was up more than 48% to EUR 83.4m (£73.8m) and gross profit rose almost 40% to EUR59.7m (£52.8m). Year to date like-for-like revenue and gross profit were up over 54% and over 45% respectively.
S4 says Media Monks has shown 'very strong growth' in the US, and has opened a new office in San Francisco to complement those in New York and Los Angeles. Europe (including Central and Eastern Europe) also 'grew significantly' in the third quarter and year to date, with the UK described as 'particularly strong'. Asia Pacific, Latin America, the Middle-East and Africa 'grew significantly' in both the third quarter and year to date, and the company has plans to expand in these areas in 2019. EBITDA at MediaMonks was pronounced 'steady' at over 20% in the third quarter.
Sorrell commented: 'Trading is very much in line with our objectives for this first quarter since the merger with MediaMonks. A focus on digital content, digital media planning and buying and first party data , along with an emphasis on 'faster, better, cheaper' executions, clearly resonates with clients of all shapes and sizes. In all, a good start for a coconut'.
Web site: www.s4capital.com .
All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.