S4 Capital PLC (LSE:SFOR), run by advertising guru Sir Martin Sorrell, reported a hefty increase in operating losses in the six months to June 30, 2022, as costs rose due to rapid hiring in its content division.
At the interim stage, the digital advertising firm’s loss was £75.4mln compared to £16.6mln in the six months to June 30, 2021, while its operational EBITDA was down 12.4% to £30.4mln.
Billings rose 39.8% to £765.6mln on a reported basis whilst revenues of £446.4mln were up 59.8% on a reported basis.
“In the first half of 2022, we continued to invest in increased human capital ahead of further top line advances and in management infrastructure, which impacted our operational EBITDA,” Sorrell said in the results statement.
“In the second half, we are focused on a better balance between top and bottom-line growth to ensure we reach our revised targets for the year. Whilst the global economy faces many significant challenges ... the prospects for digital advertising and transformation remain relatively bright,” he added.
In early trading, S4 Capital shares rose 3.6% to 148.70p.