Sir Martin Sorrell’s S4Capital has released earnings for the first quarter, showing net revenue growth of 33% over the same period last year.
The group has also announced that it will aim to expand its data & digital media offerings in Latin America through a partnership between Raccoon Group and MightyHive.
S4’s positive earnings are the latest sign of an industry-wide recovery, following strong Q1 results from the holding companies as well. On a like-for-like basis, the Americas were up 30%, EMEA up 44% and Asia Pacific up 34%.
“The recovery in global GDP and the secular trend to digital marketing provide strong tailwinds,” said Sir Martin Sorrell, S4Capital Executive Chairman.
S4 has carried out a number of successful mergers and acquisitions recently and aims to continue the trend in the future with a new partnership with Raccoon Group.
Founded in 2013, the agency specializes in digital paid media, inbound marketing and IT/business intelligence. With a client base including Natura, Nubank, Carrefour, Gympass, iFood, Leroy Merlin, Yduqs, Unilever and Google, it comprises over 450 digital media specialists, engineers, mathematicians, statisticians and programmers.
“Brazil has sadly suffered more than most as a result of Covid and we send our best wishes and support to our colleagues, new and old, their families and everyone there,” Sorrell added.
“It is a crucial market for us at S4Capital and one we have history in and love to work in, so we are delighted to welcome André, Tulio and their colleagues to expand our existing capabilities. We look forward to working closely with them to disrupt the age-old status quo in the market.”
S4Capital estimated that in 2020 digital accounted for over 50% or $290 billion of total global advertising spend of $525 billion, and projects that by 2022 this share will grow to approximately 60% and by 2024 to approximately 66%, accelerated by the impact of covid-19.
“We couldn’t be more excited to join forces with MightyHive and S4Capital. We can’t wait to collaborate with their existing services here and offer clients, talent and platforms a contemporary and differentiated partner,” André Palis, Raccoon Group CEO and Co-Founder.
S4Capital combined with digital content production company MediaMonks in July 2018 and with digital media solutions provider in December of the same year. Since then, both have acquired and partnered with numerous other agencies as well.
“Raccoon is a natural expansion of our data and digital media practice in Brazil. Welcoming André, Tulio and their colleagues to the family allows us to combine our existing capabilities with their best-in-class performance media and data competencies to create a broad-based Digital Media offering,” Chris Martin, MightyHive Co-Founder and S4Capital Executive Director.
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