- Advertising company S4Capital upgraded its annual guidance after its first-quarter gross profit jumped 71% as acquisitions boosted sales.

The company also announced that it had acquired Brazilian digital performance agency Raccoon, for an undisclosed sum.

Gross profit for the three months through March increased to £104 million, which the company said represented growth of 33% on both a like-for-like and pro-forma basis.

Revenue jumped 71% to £122 million.

Looking forward, the company said it would now target 'even stronger sector-leading' 30% like-for-like revenue and gross profit growth, up from 25% previously, and a strong operating margin in 2021.

S4Capital said the Raccoon deal significantly expanded the capabilities of its data & digital media practice in Latin America.

Raccoon, founded in 2013 by two ex-Googlers Andre Palis and Marco Tulio Kehdi, would be merged with the company's MightyHive division.

'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,' executive chairman Martin Sorrell said.

'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 Andre, 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.'

Story provided by