MDC PR unit grows 12% year-over-year in Q1

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported revenue of nearly $206 million in the first quarter of 2014, representing 12% organic growth year-over-year.

MDC chairman and CEO Miles Nadal
MDC chairman and CEO Miles Nadal

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported revenue of nearly $206 million in the first quarter of 2014, representing 12% organic growth year-over-year.

The holding company, which has majority stakes in HL Group, Allison & Partners, and Kwittken & Company, among others, reported overall organic revenue growth of 8.3% year-on-year to $265.6 million in Q1.

MDC saw a net loss of $7.5 million for the first quarter ended 31 March, compared to a loss of $42.2 million in same period of 2013. It also saw an operating profit of $11.4 million, compared to $10.9 million for same quarter last year.

Net new business wins totaled $24.4 million in Q1, with new clients across the group including Timberland, Blink Fitness, and NBA 2K.

Miles Nadal, chairman and CEO of MDC Partners, said in a statement, "Our investment in, and commitment to, great talent, technology, and cutting edge tactics continues to pay dividends and is leading to accelerated organic growth, expanding margins, higher returns on invested capital, and growing free cash flow."

He added that the new business pipeline during the quarter was "very robust."

Representatives from MDC were not immediately available for comment.

In January, MDC PR agency Allison & Partners acquired Century PR as part of its Asian expansion plans.

Last month, Allison also brought on Alan Weatherbee, previously VP of human resources at Cone Communications, to serve in the newly created role of SVP of talent search.

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