S4 Capital PLC (LSE:SFOR) reported a rise of 42% in like-for-like gross profits to £144.3mln for the third quarter, above its guidance of 40% growth.
Like-for-like revenue rose by 56% to £178.3mln in the three months to 30 September 2021, the digital advertising company said.
Billings soared by 58% in the third quarter to £320.1mln, while "controlled" billings, the overall billings the company directs, totalled were £0.9bn.
It said it has now secured six “whopper” clients, which is the term it uses for clients with revenue of more than $20mln per year, including Facebook and HP. A further 19 potential “whoppers” have been identified, which means the group may exceed its goal of securing 20 “whopper” clients.
S4’s latest three-year plan for 2022-2024 is targeting top-line and bottom-line organic growth of 25% per year, based on forecast annual growth of 15%-20% for the digital media and digital transformation industries over the same period.
The company said its earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin continue to reflect increasing investment to prioritise top-line growth.
Liquidity remained strong in the third quarter with the current monthly net debt position fluctuating between £20mln and £40mln, it said.
The company has announced 10 mergers or combinations so far this year, comprising five in its Content business, four in Data & Digital Media and the first in its Technology services.
"Following an exceptionally strong second quarter, we saw continued very strong momentum in the third quarter, which was ahead of the revised 40% top line like-for-like guidance,” commented executive chairman Sir Martin Sorrell.
“The pandemic has proven to be an accelerator of digital marketing transformation and we are taking full advantage of this opportunity by choosing to invest a proportion of our EBITDA margin in growth.