NEW YORK: MDC Partners has posted net income of $7.7 million in the fourth quarter of 2016, up from a loss of $26.2 million in the same period of the year prior, beating analysts’ expectations.
The holding company, the parent of PR firms including Allison+Partners, Kwittken, HL Group, Sloane & Company, and Albion, achieved organic revenue growth of 3.8% in the fourth quarter to $390.4 million.
For the full year, the holding company reported organic revenue growth of 2.3% to $1.4 billion. Its net loss for 2016 was $47.9 million, greater than the $37.4 million reported for 2015.
MDC said it expects to achieve 4% organic revenue growth in 2017.
Broken down by geography, MDC saw an organic revenue increase of 4.3% in the U.S. in Q4 to $304 million, while Canadian revenue was down 6% in the period to $31.8 million. Revenue in other regions was up 9.6% organically compared with the year prior to $54.6 million.
For the full year, the holding company reported 1.1% organic revenue growth in the U.S. to $1.1 billion, as well as a 0.2% drop in Canada to $124.1 million. Organic revenue in 2016 was up 16.5% across all other regions to $158 million.
MDC, which owns creative shops including Crispin Porter & Bogusky, 72andSunny, Anomaly, Doner, and Kirshenbaum Bond Senecal & Partners, also said it earned $33.2 million in new business in the fourth quarter and $91.2 million for the full year.
The holding company did not break out specific earnings for disciplines such as PR or advertising.
Earlier this month, MDC agreed to sell a $95 million stake in the holding company to Goldman Sachs, giving it 15% ownership of the umbrella group once the deal is complete.
"Although 2016 was challenging in many respects, we finished the year on solid footing and with improved top-line momentum across our portfolio of world-class agencies," MDC Chairman and CEO Scott Kauffman said in a statement. "The recently announced Goldman Sachs equity investment is exactly the right transaction for us, ensuring that we have the financial flexibility required for our disciplined approach to growth. Combined with the operational initiatives we implemented last year, we are well positioned for 2017 and beyond."