NEW YORK: MDC Partners' strategic marketing services unit, which contains its PR agencies, reported $176.6 million in revenue in the third quarter of 2012, representing 12.5% organic growth year-over-year.
In the first nine months of the year, the strategic marketing services group earned $520.5 million in revenue, up 10.7% organically compared with the same period of 2011.
“The strategic marketing services unit has been our core growth engine not only this year but for the last several years," said David Doft, MDC CFO. "I will say that the PR businesses definitely grew in line with the marketing services segment, so double-digit organic growth for sure.”
"It's not lost on us that our competitors universally were disappointed in the third quarter while we were able to exceed expectations on Wall Street," he added.
MDC's overall revenue grew 6.7% organically in the third quarter to $267.8 million, compared with the prior year. In the first three quarters of the year, it reported organic growth of 7.2% to $777.3 million.
The holding company posted a net loss of $13.4 million in Q3 2012, compared with $17.5 million in the same period of 2011, a change of 23.4%.
MDC owns majority stakes in Allison+Partners, Attention, HL Group, Kwittken & Co., Sloane & Company, and Exponent PR, among others. The holding company's largest agency, advertising firm Crispin Porter + Bogusky, is also part of its strategic marketing services unit.
The holding company reported $103.2 million in net new business in the first nine months of 2012, an increase of 36.4% compared with the same period of 2011.
Organic growth represents change in revenue without taking into account the effect of acquisitions or disposals.