MDC Strategic Marketing unit reports 8.8% revenue jump in Q3

MDC Partners' Strategic Marketing Services unit, which contains its PR agencies, reported revenue of $228.3 million in the third quarter of 2014, representing 8.8% organic growth over the same period last year.

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

NEW YORK: MDC Partners’ Strategic Marketing Services unit, which contains its PR agencies, reported revenue of $228.3 million in the third quarter of 2014, representing 8.8% organic growth over the same period last year.  

For the first nine months of the year, the group achieved 10.6% organic growth on revenue of $655.3 million.

The holding company owns majority stakes in HL Group, Allison+Partners, Kwittken, and Sloane & Company, among others. In August, MDC said it had purchased a majority stake in Hunter Public Relations, adding it to its roster of communications firms.

MDC reported overall organic revenue growth of 8.2% to $326.9 million in the third quarter. For the first nine months of the year, revenue was up 7.7% organically to $937.2 million.

The company posted a net loss of $4.9 million in Q3 2014, and net new business wins totaled $28.7 million in the quarter. It also saw an operating profit of $20.1 million, compared with $1.2 million in the same period last year.

For the first nine months of the year, the holding company’s net income was $2.7 million and net new business wins totaled $107 million. Operating profit during the period was $59.8 million, compared with $39.6 million last year.

MDC chairman and CEO Miles Nadal said in a statement that "it is shaping up to be another exceptionally strong year."

"Our investments in recruiting and developing the industry’s best talent, developing and adopting new tools and technology on behalf of clients, adding strategic capabilities at the parent company to accelerate our partners’ growth, building a media business on par with our world class creative offering, and extending our offerings beyond North America are now paying off in a material way," he added in the statement.

The earnings document also said MDC was particularly strong in strategic communications and PR, media, design, CRM, insights, and international.

When MDC acquired a majority stake in Hunter, Nadal told PRWeek that the holding company would work with the agency to continue its growth, both in terms of business and geography. He said the plan with Hunter is similar to what MDC did with Allison, which it acquired a majority share of in 2010.

Last year, Allison saw US revenue growth of 21.8%, year-over-year.

In June, MDC Partners hired former Burson-Marsteller executive Michael Bassik to serve as MD of the strategic communications group and president of digital operations.

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