MDC PR unit grows 9.5% year-over-year in Q2

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported revenue of $200.9 million in the second quarter of 2013, representing 9.5% organic growth year-over-year.

NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported revenue of $200.9 million in the second quarter of 2013, representing 9.5% organic growth year-over-year.

The unit grew 13% organically to $384.7 million in revenue in the first half of the year.

The holding company, which owns majority stakes in Allison+Partners, HL Group, Attention, and Kwittken + Company, among others, reported 5.7% overall organic revenue growth in the quarter to $288.1 million.

The company saw net income of $9.8 million in Q2, versus a net loss of $20.1 million in Q2 2012. It also reported an operating profit of $26.5 million in the three-month period ending June 30, compared with an operating loss of $1.7 million in the same period of the previous year.

For the first half of the year, MDC's overall revenue grew 9.3% organically to $555.2 million.

The company reported a net loss of $33.3 million for the six-month period ending June 30, versus a net loss of $46.4 million in the same period of the prior year, which it attributed to a refinancing charge during Q1 of this year. It saw an operating profit of $36.9 million for the first half of 2013, compared with an operating loss of $12.5 million in the same period of 2012.

“We continue to be upbeat about our outlook for our PR business,” said CFO David Doft. “Our theme of driving strong performance for our clients, leading to strong new business wins for our agencies and market share gains, continues. We continue to be enthusiastic about our outlook and our ability to drive growth at an accelerated rate.”

MDC expects revenue growth of between 8% and 10% in 2013, chairman and CEO Miles Nadal said in a statement. Net new business wins totaled $20.3 million in Q2 and $73.3 million for the first half of the year.

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