MDC SEES GAINS AS REVENUES SURGE
MDC Partners on July 28 reported a nearly 42% increase in second quarter revenue over Q2 2010 to $240.5M on net income of $3.9M.
The advertising and PR holding company, which owns PR units like Allison & Partners and Sloane & Co., said organic revenue jumped 21% for the quarter, including 25% at its strategic marketing services division, which includes ad and PR agencies.
MDC shares rose nine percent to $19.91 on Friday following the news, pushing to a 52-week high of $20.11.
“The second quarter was exceptionally good for us,” chairman and CEO Miles Nadal said in a conference call. “Our growth is across the board, across our entire portfolio.”
MDC recorded $28.6M in net new business for Q2, up 42% from 2010, including Target of Canada, Fiat and LG. Tech and digital were 51% of its Q2 revenue.
Nadal said July 28 he has created the post of innovator-at-large for MDC and tapped Jonah Disend, a founder of MDC strategy and design unit, Redscout, to fill it. His expanded role is to help “rouse an innovative view of the world amond MDC companies.”"
MDC in June brought in former Fallon Worldwide COO David Dabill to plot the company’s international expansion.
IPG’S PR UNITS CHALK UP 9.6% Q2 GROWTH
Interpublic also July 28 reported a 31 percent rise in second quarter net income to $108.9M on an eight percent revenue rise to $1.7B.
Solid overseas revenue growth of 15.7 percent to $752.9M fueled the ad/PR combine’s performance.
Harris Diamond, who heads Weber Shandwick and chairs IPG’s constituency management group, told O’Dwyer’s that PR revenues advanced 9.6 percent for the quarter as clients spent to “build-out” their businesses. He also noted that budgets for social media programs are proving to be “additive” rather than “subtractive” to traditional PR offerings at WS, GolinHarris, Rogers & Cowan and DeVries PR.
Diamond said both PR and CRM turned in “terrific” performances.
IPG CEO Michael Roth noted that stepped up investment in people trimmed profit margin from 11 percent to 10 percent this year as salaries/related expenses rose 10.6 percent to $1.1B. “Margin enhancement” is a priority for the balance of the year.
Roth noted that organic growth hit the 6.8 percent mark for the first-half. That puts IPG in line to hit its four to five percent full-year organic growth goal.