Martin Sorrell, reporting a strong first year result for his S4Capital plc, says the company's digital model is resonating with clients.
S4Capital plc, started by Sorrell after leaving WPP as CEO a year ago, posted a pre-tax profit of £8.4 million for 2018 on revenue of £135.9 million.
The after tax result was a loss of £8.1 million, mainly due to acquisitions including digital content production company MediaMonks and programmatic business MightyHive.
“It is clear that the company’s purely digital model based on first party data fuelling digital content and programmatic is resonating with clients," says Sir Martin.
"Our tag line 'faster, better, cheaper' and unitary, one P&L structure also appeal strongly.
"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."
Sir Martin describes S4Capital as a "new age/new era digital advertising and marketing services company".
S4Capital estimates that in 2017 digital accounted for 40%, or $US200 billion, of total global advertising spend of $US500, and forecasts this to grow to 55% by 2022.
In 2018, digital content accounted for 75% of S4Capital's revenue and programmatic 25%.
Significant new business wins include assignments from Procter & Gamble, Nestle, Avon, Mondelez, Shiseido, Bayer, Electronic Arts and Electroluxs. Current pipeline is about twice the level of last year.
The company’s three-year plan for 2019-2021 calls for a doubling of revenue and gross profits.
Sir Martin was CEO of WPP, the world's largest advertising and PR group, for 33 years. He left almost a year ago after allegations of abuse, claims he “strenuously” denied.
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