4th Nov 2019 09:30
(Alliance News) - S4 Capital PLC on Monday said third quarter like-for-like revenue and gross profit growth rate were faster than first half and that the company continues to trade in line with internal and external expectations.
The advertising company, which is led by former WPP PLC founder and chief executive Martin Sorrell, said revenue for the three months to September 30 was up almost 54% year-on-year to GBP56.6 million and gross profit up 50% to GBP42.1 million. Like-for-like, including-impact of mergers, asset purchase and in constant currency, revenue and gross profit were up 48% and over 44%, respectively.
Year-to-date, revenue increased 46% to GBP144.6 million and gross profit jumped 46% to GBP112.3 million. Like-for-like revenue and gross profit were both up by nearly 42%.
Both reported and like-for-like earnings before interest, depreciation and amortisation operating gross profit margins at both - content and programmatic business divisions - improved significantly in the third quarter, London-headquartered S4 Capital said.
Geographically, the Americas saw 51% growth in third quarter gross profit to GBP28.5 million and over 43% on a like-for-like basis. Year-to-date, the Americas gross profit was up almost 46% to GBP75.9 million and over 39% like-for-like.
Europe, the Middle East & Africa unit saw 26% rise in quarterly gross profit to GBP9.7 million and like-for-like up over 25%. Year-to-date gross profit was up almost 27% to GBP26.5 million and like-for-like up over 27%.
The Asia Pacific division also grew very strongly, with gross profit rocketing to GBP4.0 million from GBP1.5 million in the third quarter. Like-for-like gross profit also more than doubled in the quarter. Year-to-date reported gross and like-for-like profit also multiplied, with reported gross profit seeing more than two-fold increase to GBP9.9 million.
S4 Capital Chair Sorrell said: "We continue to trade in line with ambitious internal and external expectations, both top and bottom line. Our very strong organic growth of well over 40%, so far this year, indicates that clients are responding very well to our purely digital, unitary, 'holy trinity' model of first party data fueling digital content and programmatic."
"The peanut has morphed into a pumpkin in time for Halloween 2019 and we have also achieved US$ Unicorn status," Sorrell added. In finance, a unicorn is a startup company with a current valuation of USD1 billion or more.
S4 Capital shares were up 0.9% at 167.43 pence each in London on Monday morning.
By Tapan Panchal; [email protected]
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