S4 Capital’s gross margin exceeds expectations

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Digital advertising company S4 Capital Wednesday reported a 42% increase in third-quarter gross profits to £ 144.3million, beating growth forecasts by 40%.

The company, founded by former WPP boss Martin Sorrell, said like-for-like revenue rose 56% to £ 178.3million in the three months to September 30, 2021. She added that it planned to invest part of its profit margin in growth. .

Billings jumped 58% to £ 320.1million and controlled billings hit £ 900million. S4C said it has secured six new customers generating revenues of over £ 20million each – which the company describes as “whoppers” – including Facebook and HP.

19 other potential clients of this stature have been identified, he added.

The company was targeting 25% revenue and net income growth for 2022-2024, adding that earnings before interest, taxes, depreciation and amortization (EBITDA) and EBITDA margin continued to reflect the increase in investments to prioritize revenue growth.

“After an exceptionally strong second quarter, we saw continued very strong momentum in the third quarter, which was ahead of revised guidance by 40% on a like-for-like basis,” said Sorrell.

“The pandemic has proven to be an accelerator of digital marketing transformation and we are taking full advantage of this opportunity by choosing to invest part of our EBITDA margin in growth.”


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