NEW YORK: MDC Partners' PR businesses saw year-over-year organic growth of nearly 20% in the third quarter, Miles Nadal, chairman and CEO of the holding company, told PRWeek.
“I think we'll have 10% to 15% growth [in PR] through next year,” he said.
The holding company, which owns majority stakes of Allison & Partners, Attention, HL Group, Kwittken & Co., and Sloane & Company, among others, reported a year-over-year overall organic revenue increase of 17.9% in the third quarter to $238.2 million.
MDC's Strategic Marketing Services unit, which contains its PR firms, earned $146.1 million in revenue in Q3. It reported margins of 14.4% in the quarter, compared with MDC's11.5% overall margins in the period.
However, MDC also saw an operating loss of $3.6 million and a net loss of $17.6 million in the third quarter, and Nadal acknowledged “some slowing of existing client work as well as some modest delays in new projects and campaigns” in an earnings statement. He told PRWeek those obstacles are affecting MDC's other companies more than its communications firms, and that “our PR firms' profitability is up.”
For the year to date, MDC reported an operating profit of $13.1 million and a net loss of $20.8 million. However, it saw a 21.5% organic revenue increase in the first three quarters of 2011 to $696.2 million. MDC reported 12.3% margins for the Strategic Marketing Services unit in the first nine months of the year and 9.1% margins during that period for its overall business.
Organic revenue represents revenue change in constant currency without measuring the impact of acquisitions or disposals.