TIDMSFOR
RNS Number : 0484N
S4 Capital PLC
18 January 2023
18 January 2023
S4 Capital plc
("S (4) Capital" or "the Company")
Fourth Quarter Trading update
In line with expectations
S (4) Capital plc (SFOR.L), the tech-led, new age/new era
digital advertising, marketing and technology services company,
today confirms that trading in the fourth quarter of 2022 was in
line with expectations and therefore the Company anticipates
delivering at least GBP120 million of Operational EBITDA for full
year 2022.
The Company significantly improved Operational EBITDA margin
performance in the second half with like-for-like gross profit/net
revenue growth also in line with 25% guidance. As a result of
improved liquidity, net debt is expected to be well towards the
lower end of the guided range of GBP130-170 million.
The annual results for 2022 are expected to be announced by
Thursday 30th March at the latest. The Company will provide a full
outlook for 2023 at the annual results.
Sir Martin Sorrell , S (4) Capital Executive Chairman said,
"We look forward to updating our shareowners on the progress
with our results in March. Most market commentators are now
projecting high single digit growth for digital advertising and
high teens percentage growth for digital transformation, which we
believe we can continue to outpace, given our addressable markets
including Technology services and as we build further momentum with
our clients. Their priorities for 2023 seem to be focussed on
driving revenue growth through "lower funnel" performance and
activation and reducing cost through digital marketing
transformation."
Enquiries to:
S(4) Capital plc +44 (0)20 3793 0003
Sir Martin Sorrell (Executive Chairman)
Powerscourt (PR Advisor) +44 (0)7970 246 725
Elly Williamson/ Jane Glover
About S (4) Capital
S(4) Capital plc (SFOR.L) is the tech-led, new age/new era
digital advertising, marketing and technology services company,
established by Sir Martin Sorrell in May 2018.
Its strategy is to build a purely digital advertising and
marketing services business for global, multinational, regional,
and local clients, and millennial-driven influencer brands. This
will be achieved by integrating leading businesses in three
practice areas: Content, Data&Digital media and Technology
services, along with an emphasis on "faster, better, more
efficient" executions in an always-on consumer-led environment,
with a unitary structure.
Digital is by far the fastest-growing segment of the advertising
market. S(4) Capital estimates that in 2021 digital accounted for
over 60% or $420-450 billion of total global advertising spend of
$700-750 billion (excluding over $500 billion of trade promotion
marketing, the primary target of the Amazon advertising platform)
and projects that by 2022 total global advertising spend will
expand to $770-850 billion and digital's share will grow to
approximately 65% and by 2024 to approximately 70%, accelerated by
the impact of covid-19.
In 2018, S(4) Capital combined with MediaMonks, the leading
AdAge A-listed creative digital content production company led by
Victor Knaap and Wesley ter Haar and then with MightyHive, the
market-leading digital media solutions provider for future thinking
marketers and agencies, led by Peter Kim and Christopher S.
Martin.
Since then, MediaMonks and MightyHive have combined with a
number of companies across Content, Data&Digital media and
Technology services. For a full list, please see the S(4) Capital
website.
In August 2021, S(4) Capital launched its unitary brand by
merging MediaMonks and MightyHive into Media.Monks, represented by
a dynamic logo mark that features MightyHive's iconic hexagon. As
the operational brand, Media.Monks underpins S(4) Capital's
agility, digital knowledge and efficiency and is the next step in
delivering on its foundational promise to unify Content,
Data&Digital media and Technology services.
Victor Knaap, Wesley ter Haar, Christopher Martin, Scott Spirit
and Mary Basterfield all joined the S(4) Capital Board as Executive
Directors. The S(4) Capital Board also includes Rupert Faure
Walker, Paul Roy, Daniel Pinto, Sue Prevezer, Elizabeth Buchanan,
Naoko Okumoto, Margaret Ma Connolly, Miles Young and Colin Day.
The Company now has approximately 9,000 people in 32 countries
with approximately 70% of revenue across the Americas, 20% across
Europe, the Middle East and Africa and 10% across Asia-Pacific. The
longer-term objective is a split of 60%:20%:20%. Content currently
accounts for approximately 65% of revenue, Data&Digital media
35% and Technology services 10%. The long-term objective is a split
of 50%:25%:25%.
Sir Martin was CEO of WPP for 33 years, building it from a GBP1
million "shell" company in 1985 into the world's largest
advertising and marketing services company, with a market
capitalisation of over GBP16 billion on the day he left. Prior to
that Sir Martin was Group Financial Director of Saatchi &
Saatchi Company Plc for nine years.
LEI: 21380068SP9V65KPQN68
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