NEWS5 November 2019

S4 Capital’s profit and revenue up in Q3

Financials News UK

UK – Digital agency S4 Capital has seen its revenue increase by 54% to reach £56.6m for the three months to 30 September.

martin sorrell

Gross profit was up 50% to £42.1m; like-for-like – including impact of mergers, asset purchase and in constant currency – revenue and gross profit were up 48% and over 44% respectively.

Its strong third quarter performance is in line with its target of doubling organically in three years by 2021.

Year to date, revenue is up more than 46% to £144.6m and gross profit up 46% to £112.3m. Like-for-like revenue and gross profit were both up almost 42%.

The financials include the impact of its two mergers with Progmedia in April and IMA in August and the asset purchase of Caramel Pictures in April. Subsequent to the third quarter end, the mergers with Firewood, Convergence Works and Datalicious Korea were completed at the end of October. The previously announced merger with BizTech is expected to be completed in early November.

Sir Martin Sorrell (pictured), executive chairman, said: “We continue to trade in line with ambitious internal and external expectations, both top and bottom line. Our very strong organic growth of well over 40%, so far this year, indicates that clients are responding very well to our purely digital, unitary, ‘holy trinity’ model of first party data fueling digital content and programmatic. The peanut has morphed into a pumpkin in time for Halloween 2019 and we have also achieved US$ Unicorn status.”