Sorrell's S4 Reports First Quarter Growth
Sir Martin Sorrell's marcoms business S4 Capital has reported a 17% like-for-like increase in first quarter revenue to £71m, while on the same basis gross profit was up 19% to £60.7m.
The company was formed in 2018 and its first acquisition was of creative digital production company MediaMonks, soon afterwards merged with programmatic solutions provider MightyHive. First quarter revenue from the MightyHive programmatic and data and analytics practice rose to £14m, representing a like-for-like increase of 18%, while gross profit was £14.6m, up 17% like-for-like. The MediaMonks digital content practice, accounting for almost four fifths of the business, saw revenue of £56.3m, up 17% like-for-like; and gross profit of £46.1m, up 19%.
Geographically, all regions showed 'strong growth'. Gross profit in the Americas was £44.2m, 73% of the group total and up 21% like-for-like; EMEA reported £11.3m, up 11%; and Asia Pacific £5.2m, up 21%.
In its trading statement, S4 Capital said it is continuing to examine smaller merger opportunities, especially in areas such as data and analytics and eCommerce, as well as geographic expansion in Germany. It also claimed that despite the impact of Covid-19 it has a 'fighting chance' to achieve the group's three-year plan of doubling organically. Sorrrell (pictured) added: 'In our view, Covid-19 will only accelerate the digital trends we have seen before at three levels - consumers, media owners and enterprise managers. Clients are seeking to take back control, in a world where the walls of the walled gardens are growing higher and the battle with the tech platforms to control data and influence the direct to consumer relationship is key'.
Web site: www.s4capital.com .