MDC revenue, net income down in Q2

The holding company reported a drop in organic revenue of 1.7% in Q2.

MDC CEO Scott Kauffman
MDC CEO Scott Kauffman

NEW YORK: MDC Partners posted an organic revenue decline of 1.7% in Q2 to $379.7 million, the holding company said on Thursday.

MDC achieved $6 million in net income in the quarter, down from $13.5 million in Q2 2017, as well as operating profit of $30.8 million, compared to $26.4 million last year.

Broken down by geography, the holding company saw an organic revenue decline of 2.1% in the U.S. in Q2 to $295.3 million alongside a decline of 7.6% in Canada to $33.1 million. Outside of North America, MDC’s revenues were up 3.7 % organically to $51.4 million.

The holding company has a controlling stake in communications shops including Allison+Partners, HL Group, Hunter Public Relations, Kwittken which recently rebranded to KWT Global, and Sloane & Company. Its creative firms include 72andSunny, CP+B, Doner, and KBS. The holding company did not break out revenue growth by agency.

In the first six months of the year, the group saw organic revenue decline of 0.5 % to $706.7 million. Net loss in the first half was $22.6 million, compared to net income of $3.8 million in the first six months of 2017, and its operating profit was $16.1 million, down from $34.8 million in the same period of last year.

U.S. organic revenue was down 2% in the first half of the year to $551.8 million, and also down 4.6 % in Canada to $59.5 million. The holding company saw an organic revenue increase of 10.8 % outside of North America in the first half to $95.5 million.

Earlier today, MDC Partners announced that advertising legend Alex Bogusky is returning to Cripsin Porter + Bogusky as co-founder and chief creative engineer after an eight-year hiatus.

 

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