Staff Reporters
Mar 19, 2020

S4 Capital reports net loss as revenue rises 292%

Like-for like revenue rose 41% in what Martin Sorrell called an "outstandingly successful" first full financial year.

Martin Sorrell
Martin Sorrell

Martin Sorrel's S4 Capital has reported a loss of £10.0 million (US$11.5 million) for 2019 amid a 292% rise in revenue and 41% organic growth.

Reporting its first full-year results late yesterday, the company said revenue grew from £54.8 million in 2018 to £215.1 million in 2019, and grew 41% on a like-for-like basis.

Gross profit rose from £37.2 million to £171.3 million, a 361% rise, and increased 44% on a like-for-like basis. The company reported an operating loss of £3.8 million, citing £35.0 million in acquisition expenses and amortisation and share-based compensation.

On a pre-tax basis, S4 lost £9.2 million, which includes adjustiments, versus a loss of £9.1 million in 2018. The bottom line after tax shows a £10.0 million loss, versus an £8.1 million loss in 2018.

“Our first full financial year was outstandingly successful," Sorrell, the company's executive chairman, said in a release. "We grew our top line and bottom line at industry leading rates. ... We have achieved brand awareness and brand trial. We now have to demonstrate that we can achieve significant client conversion at scale, both with existing and new clients."

S4 cited significant recent assignments from Google, SoFi, Amazon, Netflix, Facebook, P&G, Nestlé, The Coca Cola Company, AB Inbev, Vodafone, Merck, Shiseido, Akzo Nobel and Ace Hardware.

The company also reported a good start to 2020, with January gross profit up over 30%.

"We have not seen a material impact from coronavirus as yet and will update the market appropriately,” Sorrell added.

Source:
Campaign Asia

Related Articles

Just Published

1 day ago

A spotlight night for Publicis Groupe, with Ogilvy ...

There was intense competition between Publicis' Leo Burnett and Ogilvy at the 2023 Southeast Asia AOY awards last night, with the former ultimately taking home the bulk of the metal haul.

1 day ago

'Special' night prevails over Motion Sickness at ...

Special Group steals the show with five Golds between both markets, while Kiwi challenger Motion Sickness racks up an impressive six awards, and Initiative leads the media pack.

1 day ago

Ogilvy and Mindshare split top APAC network awards ...

With four out of four Network metals in the bag last night, WPP took home all the coveted honours at this year's awards ceremony, hosted live from the glitzy Ritz-Carlton in Singapore.

1 day ago

Prime Video nabs first big agency partner as it ...

IPG Mediabrands will be the first media holding company to join forces with Amazon Advertising to access Prime Video ads.