Sorrell’s S4 Capital reports revenue surge

Sir Martin Sorrell’s new marketing communications venture has reported soaring revenues as the advertising tycoon continues to take the challenge to his old firm WPP.

S4 Capital booked a 46 per cent increase in euro sales, with gross profit up almost 40 per cent and operating earnings at the Mediamonks agency increasing by nearly 118 per cent in the year to the end of November.

Like-for-like revenues grew by more than 50 per cent and the group said it is trading in line with expectations.

It added that it secured two “prestigious digital content assignments” from major global package goods companies before Christmas, which will affect next year’s figures.

S4 Capital recently bagged its second acquisition, splurging $150 million (£118m) to snap up San Francisco-based programmatic marketing specialist Mightyhive.

Sorrell, the founder and former boss of advertising giant WPP, is executive chairman of S4 Capital.

He said the deal was an “important second strategic step” as S4 Capital looks to target the west coast of America and tech giants.

Sorrell also commented: “Momentum continues at Mediamonks and now at Mightyhive, and we are already making progress in bringing Mediamonks and Mightyhive together to provide a differentiated digital content, data and programmatic offer for clients and investors.”

Sorrell left WPP in April following allegations of misconduct and that he misused company funds. 0 Sir Martin Sorrell, S4 Capital executive chairman