MDC reports year-end revenue and profit growth

TORONTO: MDC reported full-year growth of 28% to $697.8 million, compared to $545 million in 2009.

TORONTO: MDC year-end results include 20% growth for PR, said Miles Nadal, CEO and chairman of the holding company, which acquired Allison & Partners, Kwittken & Company, and Sloane & Company over the course of the year.

Overall, the company reported full-year revenue growth of 28% to $697.8 million, compared to $545 million in 2009. For Q4, the holding company saw a 42.7% increase to $213.4 million, compared to $149.5 million in Q4 2009. Organic revenue growth for 2010 was 7.1%, and 14.1% in Q4, year-over-year.

Net income for 2010 showed a loss of $15.4 million, compared to a loss of $18.3 million in 2009. And net income for Q4 grew to $11.5 million, compared to a loss of $18.5 million year-over-year.

Annual revenue from strategic marketing services, which includes PR, integrated, marketing consulting, and advertising firms, grew 18.4% to $438.9 million in 2010.

Nadal told PRWeek that following the successful acquisitions and growth this year, PR accounts for about 13% or 14% of the company's overall revenue. Earlier this year, following the acquisitions of Sloane & Company and Kwittken & Company, he said that PR accounted for about 12% of the company's overall revenue, and he anticipates that over time it will grow to 20%.

"We see further opportunities for organic growth and acquisition in the PR space," he said. "I think what I'm most proud of is that we're now over 50% digital technology and social media and that is critical."

He added that in the next seven-to-10 years, he expects digital technology and social media to account for up to 70% of the business, and the company will also be more expansion-minded with regard to its agencies' geographical platforms.

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