S4 Capital shows growth against digital media, content segments

The firm run by Sir Martin Sorrell is seeing profits rise quickly in the Americas.

S4 Capital, the digital marketing, data and services giant founded by former WPP chief Sir Martin Sorrell is barreling toward 2021 with an optimistic outlook.

In its quarterly financial update for the three months ended Sept. 30, the firm announced that it had earned £86.4 million (approximately CAD $147.5 million), representing a 13% year-over-year increase compared to the same period in 2019. Additionally, like many marketing and media companies, its Q3 performance was a marked improvement over Q2; revenue was 53% higher than it was for the period between March and June.

It issued an estimated £163.1 in billings, which is nearly 13% higher than Q3 2019. In terms of specific services, content grew by 15% year-over-year and 69% quarter-over-quarter to £69.3 million); data and digital media rose 7% year-over-year and 9% quarter-over-quarter to £17.1 million.

Its gross profits are also getting increasingly higher; the company reported that gross profit rose sequentially each month throughout the quarter. In the end, it pulled in £75.3 of gross profit, 23% higher than Q3 2019 and 79% higher than Q2 2020. Profit rose most in the Americas (up 27% year-over-year), followed by  Asia (26%) and EMEA (7%). Staff count is up 26% year-over-year to just under 2,900.

S4 Capital’s ventures that have a Canadian presence include digital media consultancy MightyHive (S4 recently merged its acquired consulting firm, Brightblue, into MightyHive) and Media Monks.