S4 Capital revenue up 38% for Q1 2019

UK – In its first quarter trading update, digital advertising and marketing services company S4 Capital reported continued strong growth with revenue reaching £40.9m and gross profit up 37% to £32.8m.

martin sorrell

For  the three-month period ending 31 March, 2019 the company said it was on track to achieve its three year plan of doubling its size organically on a like-for-like basis.

Like-for-like revenues and gross profit, i.e. excluding acquisitions (there were none in this reporting period) and in constant currency, were up 35% and 34% respectively, reflecting the relative strength of the pound against the dollar during this period.

Its digital content business, MediaMonks, which represents about two-thirds of total gross profit, was up over 27% in reported revenues and 22% in gross profit.

Its programmatic media planning and buying business, MightyHive, representing the other third of total gross profit was up 80% in reported revenues and 81% in reported gross profit. All regions showed strong growth.

In the first quarter, new programmatic media planning and buying offices were established in Tokyo and Montreal and coverage initiated in Paris and Milan.

Sir Martin Sorrell (pictured), executive chairman of S4Capital said: "Client interest in, response to and engagement with the group’s first party data model driving and fuelling digital content creation and programmatic media planning and buying have escalated in the new year. Speed in all senses of the word is becoming a crucial competitive advantage and differentiator and we don’t have to set up an institute to learn that. We just listen."

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