TORONTO: MDC Partners' strategic marketing services group, including PR, integrated marketing, marketing consulting, and advertising, reported $91.5 million in revenue, an 8.4% increase over $84.5 million in the first quarter 2009.
Overall, the holding company, which recently announced its acquisition of Allison & Partners, reported a 7.5% increase in first quarter revenue, to $136.2 million from $126.7 million in Q1 2009. This comes after the company reported 3% revenue growth in the fourth quarter of 2009.
PR has experienced approximately 15% organic growth in recent months, MDC CEO Miles Nadal told PRWeek. MDC overall reported flat organic growth for the first quarter, and net income, year-over-year, dropped 10.2%.
“We know that our investment on talent was a drag on the bottom line in the first quarter, as we originally anticipated, but we are confident we will begin to see the incremental value of these investments in the later half of this year and in 2011, resulting in better revenue growth and better profit growth,” Nadal said, during the earnings webcast.
He said PR accounts for about 10% of the company's overall revenue, and he anticipates that over time it will grow to 20%.
“The PR and social media business has been exceedingly successful for us, amongst the most successful sectors, if not at the top of the list,” he told PRWeek.
MDC, whose PR agencies include Lime PR and Promotion and HL Group, among other firms, recently acquired majority stakes in Sloane & Company, Allison & Partners, and experiential marketing company Team Enterprises.
“We continue to look at a lot of segments within the PR space,” Nadal said. “If things go according to plan, you'll see further investment in the space.”