S4 Capital posts 58% revenue growth in 2018, bags ‘significant’ new biz

S4 Capital has amassed a revenue of £54.8 million in 2018, a 58% increase from 2017. This comes as it won a slew of clients last year, including Procter & Gamble, Nestle, Avon, Mondelez, Shiseido, Bayer, Electronic Arts and Electrolux, amongst others. According to the financial statement, its current pipeline is “approximately twice the level of” last year.

Asia Pacific accounted for 6% of its revenue and gross profit, while Europe, the Middle East and Africa represented 29% of S4 Capital’s revenue and 22% of gross profit. Meanwhile, the Americas accounted for 65% of revenue and 72% of gross profit. On a pro-forma basis, digital content accounted for 75% of revenue and 67% of gross profit, while programmatic represented 25% of revenue and 33% of gross profit.

The financial statement said the performance is planned to continue into 2019, with budgets and plans targeting strong revenue, gross profit growth and improving operational EBITDA margin and with January showing revenue and gross profit like-for-like growth of over 30%.

Meanwhile, the past year has seen four initial steps in implementing S4 Capital’s digital data, content and programmatic strategy. First, the formation and initial funding of S4 Capital. Secondly, the combination of S4 Capital with the leading digital content production company MediaMonks. Thirdly, the injection of the enlarged S4 Capital into the quoted “shell” company, Derriston Capital. Lastly, the combination of S4 Capital with media consultancy MightyHive, which will bolster its strategy of creating a new era, new media solution embracing data, content and technology in an always-on environment for global, multi-national, regional and local clients and for millennial-driven digital brands. Last July, S4 Capital also bought out digital production company MediaMonks.

Moving forward, S4 Capital intends to broaden and deepen relationships with existing and new clients as well as its geographical coverage. It also plans to attract additional data, content and media talent and resources through direct recruitment, acquisition and/or merger.

In 2018, its focus on geographical expansion, particularly in Asia Pacific, was underlined by the appointments of Michel de Rijk as CEO of S4 Capital Asia Pacific and Poran Malani as director of the agency’s operation in India. De Rijik was previously the global chief growth officer at WPP’s performance media group and Asia Pacific President at GroupM. Meanwhile, Malani has over 30 years of experience with Ogilvy, McCann and Coca-Cola, including nine years as president of WPP’s Ogilvy South India.

Sir Martin Sorrell (pictured), executive chairman of S4 Capital, said: “It is clear that the company’s purely digital model based on first party data fuelling digital content and programmatic is resonating with clients. Our tag line ‘faster, better, cheaper’ and unitary, one P&L structure also appeal strongly.”

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