MDC Partners reports 2.4% drop in organic revenue in Q2

Its specialist communications group grew by 15.1%.

MDC CEO Mark Penn
MDC CEO Mark Penn

NEW YORK: MDC Partners reported a year-over-year organic revenue decrease of 2.4% to $362.1 million in Q2. 

Net income dropped 27.3% to $800,000 in the period. 

The holding company’s specialist communications segment, which houses its PR shops, grew by 15.1% to $47.2 million. The group contains Allison+Partners, HL Group, Hunter PR, KWT Global and Veritas. 

Broken down by geography, the holding company as a whole saw U.S. organic revenue decline 3.8% to $284.7 million and Canadian revenue drop 5.6% organically to $24.6 million. However, outside of North America, the holding company’s Q2 revenue was up 7.3% to $52.9 million. 

The numbers reflect the second quarter of leadership by MDC chairman and CEO Mark Penn, a former Microsoft executive and one-time CEO of Burson-Marsteller. Penn began managing MDC in March, after the Stagwell Group, the investment company he founded, invested $100 million in the company. 

Separately, Stagwell also owns a minority stake in Finn Partners.

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