S4 Capital on Track to Achieve Full Year Goals, Third Quarter Revenue and Earnings Increase
Digital Advertising Group Capital S4 said on Monday it remained on track to meet its full-year targets as it updated investors on its strong third-quarter performance.
S4 Capital said third quarter billings rose 51% to £484.2m, while revenue rose more than 68% to £300.1m and gross profit was 73 % above £249.9 million.
Year-to-date billings were up 46% to £1.3bn, while year-to-date revenue was up 63% to £746.5m, and profits like-for-like gross rose 64% to £625.2m.
The London-listed group also said it was still trading in line with its annual revenue target of 25% like-for-like gross profit/net income growth and its profitability target of operating profit below underlying of around £120.0m, adding that it had seen “little negative impact” so far on the current macro-political and economic situation.
Chairman Martin Sorrell said: “Despite the current macro-political and economic gloom and slowing technology growth, our revenue momentum was more than sustained in the third quarter and remains relatively strong in the fourth quarter.
“Given the reduction in global GDP growth rate forecasts for 2022 and 2023 and the likelihood of a recession in some parts of the world, customers will ‘step down the funnel,’ as they say, giving the priority on performance and activation, commensurate with marketing return on investment and media mix modeling, which plays to our strengths. We believe this changing market environment will continue to offer opportunities significant growth given our customer profile, relative size and disruptive model.
As of 09:30 GMT, S4 shares were up 3.81% at 218.0p.
Reporting by Iain Gilbert on Sharecast.com