Aleda Stam
Aug 6, 2021

Stagwell revenue jumps 33% in Q2

The company finalized its merger with MDC Partners following approval from shareholders at the end of July.

Stagwell chairmand & CEO Mark Penn
Stagwell chairmand & CEO Mark Penn

Stagwell Group posted a 33% increase in net revenue organic growth in Q2 to $181.8 million. 

The quarter closed with MDC Partners shareholders voting to approve the agreement to combine with Stagwell Group after a dispute in May

Double-digit organic growth across nearly all non-political segments was the main contributing factor to the organic revenue increase, according to Stagwell president Jay Leveton. 

"As the impact of the pandemic recedes, marketers are investing in research and data analytics to better understand changes among their stakeholders and improve how they connect with them through digital channels, areas where Stagwell companies excel," Leveton said in an earnings statement. "We have excellent momentum as we launch Stagwell Inc."

The network posted net income of $23.3 million, up 34.2% compared with the prior year. 

Stagwell’s agencies include Code and Theory, ForwardPMX, Grason, Harris Insights & Analytics, HarrisX, Ink, Locaria, MMI Agency, Multiview, National Research Group, Observatory, Reputation Defender, Scout, SKDKnickerbocker, Stagwell Tech, Targeted Victory and Wye Communications.

In May, Stagwell sold its minority investment in Finn Partners back to the agency in an amicable separation.  

The network also released standalone financial data for MDC, which posted net revenue of $298.4 million in the period, up 26.9% organically. It earned $1.7 million in net income attributable to common shareholders, up from a net loss of $4.1 million in the year prior. 

MDC owned creative agencies including 72andsunny, Crispin Porter + Bogusky and Anomaly. MDC's PR and public affairs firms included Hunter, Allison+Partners and KWT Global.

Source:
PRWeek

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