Sir Martin Sorrell’s S4 Capital reported operating losses of £75.4m in the first half of 2022, according to its latest financial results.
This is more than four times higher than the same period in 2021 (£16.6m), and its net debt for the period was £135.5m.
Billings increased from £547.5m in the six months ended 30 June 2021 to £765.6m in the six months up to 30 June 2022. Revenue went up from £279.3m in the first half of 2021 to £375.3m in the same period in 2022.
The digital advertising firm’s headcount soared by nearly 59% from 5691 to 9041 over the same period.
The company issued a profit warning in July along with a hiring freeze after a “disappointing” first quarter. Its full-year 2021 financials were delayed twice due to auditing issues.
The company’s report stated it “continues to expect a significantly stronger second half performance with a weighting to the fourth quarter”.
Sorrell said today: “Whilst the global economy faces many significant challenges in areas such as climate change, a lengthy war on Continental Europe, rising inflation and interest rates, energy shortages, fractious US/China and Western/Russia relationships and with Iran, the prospects for digital advertising and transformation remain relatively bright, whilst traditional media languish, and there is evidence that demand accelerates during periods of economic uncertainty as we saw with Covid in 2020, when we performed strongly.”