MDC reports second-quarter profit
Holding company MDC Partners reported revenue of $240.5 million in the second quarter, a 42% increase compared with the prior year. The company's strategic marketing services division generated $155 million in revenue, up 45% year-over-year, while revenue from the performance marketing services unit rose 36% year-over-year to $85.5 million.
The company posted a $3.9 million profit in the quarter after seeing a $3.8 million loss last year. MDC's revenue from net new business wins increased 42% year-over-year to $38.6 million. Revenue from technology and digital services accounted for 51% of the company's total revenue in the quarter.
“Our growth is across the board,” said Miles Nadal, chairman and CEO of MDC Partners, on an earnings call. “It's not focused on any one business or segment.”The New York-based holding company's strategic marketing services division includes shops such as Crispin Porter & Bogusky, 72andSunny and Attention. Its performance marketing division houses consumer insights and database marketing firms such as Integrated Media Solutions, Communefx and Accent Marketing Services.
“Our new business activity in the second quarter, and really over the course of the past 18 months, was exceedingly strong,” said David Doft, CFO of the holding company, in an earnings statement. “Recent notable wins include Target, Fiat and LG.”
The holding company also named Jonah Disend, founder and CEO of ad agency Redscout, innovator-at-large at MDC. He will retain his role at Redscout.
Nadal said he expects MDC to acquire two or three companies in the second half of 2011, terming them “singles or doubles type of transactions.” He said that the company is close to making an acquisition that will expand its international presence.