Sep 13, 2021
Sorrell’s S4 Capital raises revenue forecasts for third time this year
Sir Martin Sorrell's digital ad group S4 Capital has increased revenue forecasts for a third time this year, saying it was delivering growth more akin to that of Google and Facebook than traditional advertising groups. S4, which the 76-year-old launched three years ago following his acrimonious departure from WPP, said on Monday that it expected to deliver a year-on-year, like-for-like rise in full-year net revenue of 40 per cent, an increase from the start of the year of 25 per cent. Assignments from clients including Procter & Gamble, Netflix and BMW helped first-half revenues rise from £141.3m a year ago to £279.3m, yet S4 said its performance had not been flattered by comparisons with the onset of the pandemic, noting that revenues were also up strongly from 2019 levels. Monks brand, posted a pre-tax loss in the period of £19.4m, including acquisition-related costs and other "Adjusting" items of £47.6m. Excluding the adjusting items, operating profit rose from £16.3m to £31.3m. S4 said it was "Prioritising revenue and gross profit growth at this early stage of the company's development". The company's revenues remain a fraction of those at WPP, which Sorrell led for 33 years.
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