MDC marketing services revenue up
MDC Partners' first-quarter revenue increased 60% to $217.5 million, compared with Q1 2010, the agency said April 28. Strategic marketing services revenue decreased 0.2% to $91.3 million year-over-year, while performance marketing services revenue increased 70.2% to $76.0 million in the quarter.
The holding company defines strategic marketing services as integrated advertising agencies and consulting firms, such as 72 and Sunny and Skinny NYC. Performance marketing services are defined as businesses that develop customer insights and data analytics, such as Accent Marketing Services, NorthStar Research Partners and Relevent.
MDC did not specify organic growth in dollar amounts. However, Miles Nadal, chairman, president and CEO of the agency, said on an earnings call that the holding company saw organic growth of more than 26% in the quarter.
“But one quarter does not make a year,” he said. “We'll hold victory laps for the year end when we believe we'll comfortably exceed our initial guidance.”
The New York-based holding company earned $8.2 million in new business in the quarter, an increase of 24% compared with Q1 2010. Operating expenses increased 57.5% to $215.3 million in the first quarter, compared with Q1 2010.
Technology and digital services revenue constituted 51% of the company's total for Q1.
MDC Partners acquired a majority stake in digital shop Anomaly in February. Nadal said at the time MDC has “$200 million in excess liquidity, so we're in a great position to be more bullish than we've ever been.”