TORONTO: Miles Nadal-led marketing services group MDC increased its revenue from $92.476 million to $110.582 million in Q3.
Operating income for the group was $7.758 million, compared to $14.348 million in Q3 2009. The company reported that its overall Q3 revenue increased 33% year-over-year to $178.6 million, while net income was at a loss of $11 million, compared with a $36 million profit in Q3 2009. Overall organic revenue increased 7.5% in Q3, from Q2.
Nadal, MDC's CEO, attributed the revenue growth to new business wins and investment in talent across the board.
Regarding the drop in net income, he said, “We look at cash flow, not net income. For the year, we'll be up significantly."
Earlier this year, Nadal said that PR accounts for about 10% of the company's overall revenue, and he anticipates that over time it will grow to 20%. He said that to-date, following the recent acquisitions of Sloane & Company and Kwittken & Company, PR accounts for about 12% of the company's overall revenue.
“Investments we've made in PR are doing extraordinarily well,” he said. “I'd say we've seen almost a 15% growth in PR, which is well beyond expectations.”
The company has spent almost $90 million on acquisitions, which he said could increase by “a like amount” over the next 18 months.
“We continue to look to fortify our existing PR business and we look for more opportunities to expand on a broader basis as well as make more acquisitions.”
MDC PR agencies include Lime PR and Promotion, HL Group, Kwittken & Company, Sloane & Company, and Allison & Partners, among others.