18th Mar 2019 09:48
LONDON (Alliance News) - S4 Capital PLC on Monday said it saw double-digit growth in revenue in 2018, but profit declined on increased costs.
S4 Capital was founded by Martin Sorrell, founder and former chief executive of advertising giant WPP PLC. He left in April 2018, after WPP conducted an investigation into "an allegation of misconduct". Sorrell is executive chair of S4 Capital.
The ad agency reported GBP7.6 million in profit for 2018, down 12% from GBP8.6 million a year prior, as operating expenses jumped to GBP96.7 million from GBP60.5 million. Revenue, meanwhile, grew by 58% to GBP135.9 million from GBP86.1 million.
S4 Capital, formerly known as Derriston Capital, changed its named following the acquisition of S4 Capital Ltd at the end of May last year.
In July, S4 Capital bought Netherlands-based advertising firm MediaMonks Multimedia Holding BV, after winning the bid over WPP.
In addition, at the end of December, S4 Capital combined with MightyHive, a programmatic ad company, running auctions for advertising time.
S4 Capital said it now has in place the digital content and programmatic building blocks on which to grow.
"It is clear that the company's purely digital model based on first party data fuelling digital content and programmatic is resonating with clients," said Sorrell.
"The imperatives will be to broaden and deepen relationships with existing and new clients; to broaden and deepen geographical coverage; and to attract additional data, content and media talent and resources through direct recruitment, acquisition and/or merger," added Sorrell.
S4 Capital shares were trading 2.6% higher on Monday at 126.75 pence each.
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