S4 Capital sinks as Sorrell's outfit slashes forecasts
Underlying profit or EBITDA for the full year will be approximately £120mln against forecasts of £154-165mln
Company
LON:SFOR
S4 Capital PLC is a new age/new era digital advertising, marketing and technology services company, operating in the fastest-growing segment of the advertising and marketing services market. The company's strategy is to build a purely digital advertising and marketing services business for global, multinational, regional, and local clients, and millennial-driven influencer brands. This will be achieved by integrating leading businesses in two synchronised practices: Marketing services and Technology services, along with an emphasis on ‘faster, better, cheaper, more’ execution in an always-on consumer-led environment, with a unitary structure.
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Underlying profit or EBITDA for the full year will be approximately £120mln against forecasts of £154-165mln
Los Angeles-based influencer marketing start-up XX Artists was named one of Fast Company's 100 Best Workplaces for Innovators in 2021
Headwinds include slow economic growth in its key sectors, global media, marketing services and trade budgets
Given the impact of the war in Ukraine, the group is now targeting a lower geographic focus on Asia Pacific
“Yes, S4C is cyclical but is already pricing the risk of a recession at 77%,” the analysts said
Sir Martin Sorrell said the group has six well established "whopper" clients and a further 19 clients identified as "whoppertunities"
Over £1bn was wiped from its market value on the delays
S4 had previously done some work with Estee, but revenues were predicted to be in the low single digits
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Shares tumbled by a third on Thursday when it announced the delay
Builders and building materials
Diary announcements slow a little though the geopolitical uncertainty remains
Founder Sir Martin Sorrell believes shares could attain more value if listed in New York
The digital advertising company is targeting top-line and bottom-line organic growth of 25% per year for the three years from 2022 to 2024
Founded in 2002 by DJ Edgerton in Colombia, Zemoga has offices in Los Angeles, New York and Wilton, Connecticut
“We continue to trade in line with ambitious internal and external targets," the company said.
The digital advertising and marketing firm said the pipeline of its content mandatory practice, which contributes over two-thirds of its revenues and gross profit, had started at a higher level in June than the previous month
The digital advertising firm also said it was confident of delivering “double digit like-for-like revenue and gross profit growth”
"The peanut has morphed into a pumpkin in time for Halloween 2019 and we have also achieved US$ Unicorn status," said executive chairman, Sir Martin Sorrell.
Rather than replicate WPP, the £11bn advertising giant he created with a holding company model, Sorrell is rolling up smaller agencies and merging them into one of two arms: an operation producing content, and a unit handling the programmat
Investments and investor services
Rising headcount and geographical expansion, both at MediaMonks in digital content and MightyHive in programmatic, affected underlying profit margins.