MDC strategic marketing unit grows 10.7% in Q2

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported $183.8 million in revenue in Q2 2012, representing 10.7% organic growth year over year.

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported $183.8 million in revenue in Q2 2012, representing 10.7% organic growth year over year. 

The group also achieved operating income of $13.1 million in the three months ending June 30.

MDC's total revenue increased 8.3% organically in Q2 to $274.1 million, compared with Q2 2011. However, the holding company posted an operating loss of $2.7 million and a net loss of $18.5 million in Q2 due to costs relating to prior acquisitions.

MDC owns majority stakes in Allison+Partners, Attention, HL Group, Kwittken & Co., Sloane & Company, and Exponent PR, among others. The company's largest agency is advertising firm Crispin Porter + Bogusky, which is also part of the strategic marketing services unit.

The holding company also reported $80 million in net new business wins in the first half of 2012, an increase of 71% compared to the same period last year.

During the second quarter, car audio and home entertainment company Pioneer Electronics hired Allison+Partners as its PR AOR in June. NationalField, a private social network for businesses, picked Kwittken+Company as its US AOR in May.

Organic revenue represents change in constant currency without measuring the impact of acquisitions or disposals. “Our business performed very well in the first half of the year and we are on a good trajectory to achieve our 2012 financial targets,” Miles Nadal, chairman and CEO of MDC, said in a statement.

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