S4 Capital unveils 'very strong' quarter following MediaMonks merger

WPP founder Martin Sorrell's digital advertising and marketing outfit S4 Capital turned in a "very strong" third quarter on Wednesday, with revenues and gross profits showing a significant year-on-year improvement.

S4 saw revenues increase 45% to €29.3m in the three months ended 30 September, while gross profits were up nearly a third to €20.4m. Like-for-like revenues shot up 46%.

Year to date, S4 has seen revenue jump 48% to €83.4m and gross profit improve 40% to €59.7m.

MediaMonks, S4's main trading company, saw its operating margin remain "steady at over 20%" in the third quarter and up to 25% in the first nine months - a marked improvement on the 15% reported in the first three quarters of last year.

Geographically, S4 witnessed very strong growth in the United States during the third quarter, leading it to open a new office in San Francisco in the fourth quarter in order to further service the group's "growing technology client portfolio".

All in all, S4 said it continues to trade in line with its budget and objectives for 2018.

Chairman Martin Sorrell, said: "Trading is very much in line with our objectives for this first quarter since the merger with MediaMonks."

"We are already planning significant expansion of the group's services in digital media planning and buying and content and geographically, particularly in the United States and Asia Pacific. In all, a good start for a coconut!"

As of 1105 GMT, S4 shares had forged ahead 2.05% to 115.82p.