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Soaring demand helps Sorrell’s S4 raise Reuters profit targets

© Reuters. File Photo: Sir Martin Sorrell will attend a conference at the Cannes Lions International Creativity Festival on June 22, 2018 in Cannes, France.Reuters / Eric Gaillard

London (Reuters)-Martin Sorrel’s S4 Capital raised its annual revenue and gross profit targets on Tuesday after a pandemic forced customers to invest more in digital advertising, a demand not seen since the 1980s. Contributed to the creation.

UK advertising executives said client wins from BMW and Mondelez (NASDAQ :) boosted revenues in March. In short, this year we are aiming for intrinsic revenue and gross margin growth of 25% to 30%.

Sorrel, who founded the world’s largest advertising group WPP (LON :) before leaving 2018 and founded pure digital S4, benefited from the rapid transition to digital services accelerated during COVID-19. Said that.

Major client wins from Google (NASDAQ :), Facebook (NASDAQ :), BMW, Mondelez and others mean that gross profit in the first quarter increased 33% on an organic basis, doubling organically. You should reach your three-year goal. ..

“Even if there was this level of activity in the pipeline, it hadn’t been seen for years,” Sorell told Reuters. “It’s strong. It looks like it’s going to be huge in April.”

S4 said it is ready to use the group for about twice its core earnings and is preparing to issue about £ 250m of bonds to increase its firepower for acquisitions.

It also announced the acquisition of Brazilian distributor Raccoon, which provides digital search and data analytics.

The company’s stock was up 3% in early trading.

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Soaring demand helps Sorrell’s S4 raise Reuters profit targets

Source link Soaring demand helps Sorrell’s S4 raise Reuters profit targets

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