Revenues are running ahead of target at Martin Sorrell’s new digital ad agency S4 Capital (LON:SFOR) though a doubling of staff numbers has affected margins.
Like-for-like sales and gross profit were around 40% higher in the first half of 2019, but the rising headcount and geographical expansion, both at MediaMonks in digital content and MightyHive in programmatic, affected underlying profit margins.
“We expect margin expansion in the second half of the year, said executive chairman Sorrell.
"The continued top-line revenue and gross profit momentum at twice the digital market's growth rate clearly demonstrates the contemporary relevance to clients, of the purely digital, 'faster, better, cheaper', unitary, first-party data, content and programmatic mode," added the former WPP boss.