NEW YORK: MDC Partners’ Q1 revenue improved by 2% on an organic basis from the year prior to $327.7 million.
Revenue declined by 0.3% on an as-reported basis. The holding company said higher billable pass-through costs incurred on behalf of clients from “certain of our partner firms acting as principal” unfavorably affected organic revenue.
MDC reported a net loss in the quarter of $2.4 million, an improvement from a $2.5 million net loss in Q1 2019.
In previous quarters, MDC grouped its PR shops in the specialist communications segment and reported that unit’s revenue. As of Q1, the holding company started separating revenue into three categories: the integrated agencies network, the media and data network and all other.
The agencies network, created in December, contains PR firms Exponent, Veritas, KWT Global, Hunter and HL Group, along with ad agencies, production shops and marketing firms, according to an MDC spokesperson.
PR shop Allison+Partners is part of the “other” category along with MDC operations design studio Bruce Mau, creative firm Forsman & Bodenfors, design agency Hello, creative shop Team and comms shop Vitro.
Q1 2020 revenue for the agency network segment was $208.3 million, while revenue for the “other” segment was $78.4 million. Revenue for the media and data network was $41 million.