LONDON (ShareCast) - (Sharecast News) - Digital advertising company S4 Capital on Wednesday reported a 42% rise in third quarter like-for-like gross profits to £144.3m - beating guidance of 40% growth.
The company, founded by former WPP boss Martin Sorrell, said like-for-like revenue rose was up 56% to £178.3m in the three months to 30 September 2021. It added that it planned to invest part of its earnings margin in growth.

Billings surged 58% to £320.1m and controlled billings were £900m. S4C said it had secured six new clients providing revenues of more than £20m a year each - which the company refers to as "whoppers" - including Facebook and HP.

Another 19 potential clients of this scale had been identified, it added.

The company targeted 25% top and bottom-line growth for 2022-2024, adding that earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin continued to reflect increasing investment to prioritise top-line growth.

"Following an exceptionally strong second quarter, we saw continued very strong momentum in the third quarter, which was ahead of the revised 40% top line like-for-like guidance," Sorrell said.

"The pandemic has proven to be an accelerator of digital marketing transformation and we are taking full advantage of this opportunity by choosing to invest a proportion of our EBITDA margin in growth."

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