Martin Sorrell's pure play digital advertising group S4 Capital is on track to hit full year targets.
The company, in a market update, said the December quarter was in line with expectations and S4 anticipates delivering at least £120 million of operational full year EBITDA (Earnings before interest, taxes, depreciation, and amortisation).
The company says it significantly improved operational margin performance in the second half with like-for-like gross profit/net revenue growth also in line with 25% guidance.
Net debt is expected to be well towards the lower end of the guided range of £130-£170 million.
The annual results for 2022 are due to be announced by March 30 at the latest.
Most global advertising groups will report their results in February.
Sir Martin, S4’s executive chairman: "We look forward to updating our shareowners on the progress with our results in March.
“Most market commentators are now projecting high single digit growth for digital advertising and high teens percentage growth for digital transformation, which we believe we can continue to outpace, given our addressable markets including technology services and as we build further momentum with our clients.
“Their priorities for 2023 seem to be focussed on driving revenue growth through ‘lower funnel’ performance and activation and reducing cost through digital marketing transformation."
Globally the advertising market is still growing in 2023 but not as strong as last year.
MAGNA, in its 2023 forecasts updated in December, says the advertising marketing in Australia will dip in 2023 but still grow by 5% to $23.5 billion
Australia’s advertising market grew by 8% in 2022 to reach $A22.3 billion.
GroupM, in its December update, puts growth in the Australian advertising market at 3.4% in 2023, down from 10.9% in 2022.
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