S4 Numbers yesterday14 Sep 2021 08:10
Another upbeat statement from Mr. Sorell with regards to the advertising outlook as move towards the end of 2021 and into 2022, just to re-cap :-
UPDATE 1 – Sorrell's S4 Capital raises annual profit outlook for a third time
13-09-2021 09:35
(Adds details, quotes)
LONDON, Sept 13 (Reuters) – Martin Sorrell's S4 Capital marked its third birthday with a third increase to its profit forecast this year, driven by major brands and tech platforms using the digital-only advertising group to target customers during the pandemic.
It said gross profit had jumped from an increase of 33% in the first quarter to 66% in the second as clients including Alphabet's Google, Facebook , HP, Netflix , Burberry and Amazon Fashion booked more work.
Built by Sorrell, the founder of the world's biggest advertising company WPP , S4 is a purely digital group that uses data analysis and technology to place ads on the best sites, at the best time of the day, to influence spending decisions.
It has benefited as major groups switched their operations online during the pandemic. It now expects gross profit to rise by 40% this year, the third time it has increased its forecast from an original target of 25%.
"Half of our growth is coming from organic and half is coming from deals, so it's very good, we're doubling our headcount," Sorrell told Reuters.
Sorrell founded S4 after he left WPP in 2018, and the group has a mid-term target of doubling organically over the 2021-23 period. It now has a market value of 4.5 billion pounds ($6.2 billion) after its shares rose by 103% in the last year.
Analysts at Jefferies said S4 benefited from the rapidly growing digital and tech advertising spend and that the company would track global digital transformation generally.
"In the backdrop of this and other advertising market eco-system changes (eg death of third party cookies), digital marketing and data consultancy have never been more relevant," they said in a note.
With ITV studios also now ramping up production as move away from covid, its all looking good for ITV !
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