Advertising mogul Sorrell shrugs off the gloom as S4 profits surge
SIR Martin Sorrell has brushed off worries about the global economy as his firm S4 Capital posted a 29pc rise in revenues.
The advertising mogul said he was ‘relatively optimistic’ as he believes S4, which is focused on digital rather than traditional TV or newspaper ads, stands to gain.
Shares rose by 6.8pc, or 14.2p, to 224.2p as the company stuck to guidance given earlier this year even as economists forecast a gloomy road ahead in coming months that is likely to affect advertising firms’ big corporate clients.
The company posted net revenues of £249.9m for the third quarter. Sorrell has built the firm up rapidly through a series of takeovers since his departure as boss of ad giant WPP in 2018.
But investor confidence has been shaken in recent months after a profit warning and delayed results and the shares are down 65pc for the year to date. However, Sorrell said yesterday that the global slowdown was likely to ‘ play to our strengths’ as clients move ‘down the funnel’.