MDC PR unit up 14.5% in Q4, 12.2% for 2014

MDC Partners' Strategic Marketing Services unit grew 14.5% organically during the fourth quarter of 2014.

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 $270.9 million in the fourth quarter of 2014, representing 14.5% organic growth over the same period last year.

For the full year, the group achieved 12.2% organic growth on revenue of $954.2 million.  

The holding company owns majority stakes in Hunter Public Relations, HL Group, Allison+Partners, Kwittken, and Sloane & Company, among others.

"We continue to be enthusiastic about the PR space and believe that strategic communications and public relations are poised to continue to benefit from the evolving marketing mix," said MDC CFO David Doft, via email. "In particular, we’re pleased to see more and more clients gravitating towards nimble, innovative, and entrepreneurial firms, which has enabled our partners to benefit disproportionally."

MDC reported overall organic revenue growth of 12.5% to $339.9 million in Q4. Full-year revenue was up 10.8% organically to $1.22 billion, compared with the prior year.

The holding company’s net loss in the fourth quarter was $26.8 million, compared to a loss of $94.3 million in Q4 2013. Its net loss for the full year was $24.1 million, up from $148.9 million the previous year.

MDC’s operating profit in Q4 was $25.7 million, compared with an operating loss of $70.1 million in the same quarter last year. It ran an operating profit of $87.7 million in 2014, compared with an operating loss of $34.5 million the year prior.

Nadal added that he expects MDC to achieve organic growth between seven and nine percent in 2015.

This story was updated on February 24 with comment from Doft.

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