S4Capital posts total revenue of £86.4 million in Q3

The Group has said it continued to progress with a very strong third quarter performance despite the impact of Covid-19

e4m by exchange4media Staff
Published: Nov 10, 2020 8:21 AM  | 2 min read

S4Capital has posted an almost 53% jump in revenue to £86.4 million in its trading update for Q3.

Its gross profit stands at £75.3 million, up 79%.

The Group has said it continued to progress with a very strong third quarter performance, despite the impact of Covid-19 and is now more in line with its target of doubling organically in three years by 2021.

The Like-for-like (including impact of combinations, asset purchase and in constant currency) revenue and gross profit were up almost 13% and almost 23% respectively. Gross profit improved sequentially each month in the third quarter, up 18% in July, 24% in August and 25% in September, the digital advertising and marketing services company has said.

Sir Martin Sorrell, Executive Chairman of S4Capital plc said: “Our consistent, very strong organic gross profit growth of almost 16% so far this year and almost 23% in the third quarter, indicates that we are well positioned in the digital sweetspot of an otherwise stagnant advertising and marketing industry and that clients are responding very well to our new age/new era, purely digital, “holy trinity” model of first party data fueling digital content, data & digital media. Covid-19 has acted as an accelerator for search, social and ecommerce. Our very significant client wins in 2020, which include the BMW/Mini “Engine” in Europe, signal that we are achieving client conversion at scale, after achieving brand awareness in 2018 and brand trial in 2019. Our mantra of “faster, better, cheaper” or “speed, quality, value” and our unitary, one P&L structure, are clearly resonating with clients and differentiating our offer.

We are optimistic about the macro prospects for 2021, particularly given the likely Global GDP rebound, the probability of further vaccine, therapeutic and testing developments, Tokyo 2021 and Euro 2021 and, at a micro level, the progress we have already made with major new client assignments in 2020. We plan further integration and combinations in 2021, which will reinforce our client appeal. Agility, accentuated by the impact of covid-19, remains the key, requisite corporate attribute for success, characterised by a shared purpose and vision, a network of empowered teams, rapid decision making, dynamic, passionate talent and enabling technology (the five dimensions identified by McKinsey & Co).”

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