MDC Partners posts loss of $18.2m in Q3

The holding company blamed the loss on a $21 million impairment charge.

NEW YORK: MDC Partners reported a net loss of $18.2 million, down from a profit of $14.1 million a year ago, in Q3. The holding company said the net loss was largely due to an impairment charge of $21 million.

Its revenue was up 1.5% organically to $375.8 million.

Revenue from MDC’s specialized communications shops was up 11.7% to $40.6 million. Its media services firms posted revenue of $38.3 million in Q3, up 6.7% from the year prior. The holding company does not break out performance of individual agencies.

MDC, which has majority stakes in PR firms such as Allison+Partners, KWT, and Sloane & Company, reported net new business wins of $12.7 million in the period. MDC posted an operating profit of $2.6 million, down from $37.2 million in Q3 2017. Prominent business wins in Q4 included and MillerCoors brand Leinenkugel.

"It was an exceptionally busy quarter, and we remain committed to taking the necessary steps to strengthen the business, financially position MDC Partners and our agencies for long-term success, and maximize value for shareholders," CFO David Doft said on MDC’s earnings call.

The earnings report comes as the company searches for new leadership and explores strategic options, including the possibility of a sale. Weighed down by client cutbacks and a slower stream of new business wins, MDC said in September that CEO Scott Kauffman will step down from his role as soon as a replacement can be found.

MDC also promoted Ryan Linder to EVP and global CMO this month.

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