By Ilaria Grasso Macola
Sir Martin Sorrell’s S4 Capital has maintained its 25 per cent revenue growth target for the year despite lower core earnings.
In the six months ended 30 June, the digital advertising firm posted an operational EBITDA of £30.1m – down 12.4 per cent on last year’s levels.
S4 Capital’s loss for the period surged by 354.2 per cent to £75.4m as a result of its rapid and continuous hiring.
However, gross profit was up to £375.3m while revenue increased by 60 per cent to £446.4m.
“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,” said Sorell on Wednesday.
“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.”
Sorrell’s brainchild recently saw its shares tank after it issued a warning to investors, City A.M. reported.
S4 Capital’s shares went down 40 per cent in July after the company warned staff costs would be ahead of profit.
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