Sir Martin Sorrell’s advertising firm S4 Capital PLC (LON:SFOR) sees 2019 results beating expectations after a strong first quarter, sending shares higher on Friday.
The company, which specialises in digital advertising and marketing, said gross profit was up more than 37% to £32.8mln in the three months to March 31.
READ: Sir Martin Sorrell hails “powerful” 2018 as S4 Capital posts revenue and earnings jump
Reported revenue gained more than 38% to £40.9mln.
On a like-for-like basis, gross profit rose 34% and revenue increased 35%.
The group’s digital content business, MediaMonks, delivered a 27% rise in reported revenue and a 22% increase in gross profit. It represented about two-thirds of gross profit.
Programmatic division, Mightyhive, made up the remaining third of gross profit, which jumped 81% in the quarter. Revenue surged 80%.
S4 said it continues to trade in line with budget and its objectives for 2019. It added that the first quarter revised forecast indicates revenue, gross profit and earnings before interest, depreciation and amortisation growth "above budget for the year".
Sorrell said: "Client interest in, response to and engagement with the group's first party data model driving and fuelling digital content creation and programmatic media planning and buying have escalated in the new year.
“Speed in all senses of the word is becoming a crucial competitive advantage and differentiator and we don't have to set up an Institute to learn that. We just listen.”
Sorrell set up S4 last year after stepping down as the boss of WPP PLC (LON:WPP) following allegations of misconduct, which he denied.
Shares rose 3.5% to 157.95p in morning trading.