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MDC Partners, parent of Allison + Partners, Sloane & Co, KWT Global and Hunter PR, is exploring its strategic options.
The Wall Street Journal reports the decision follows client cutbacks, failure to win new business, pressures from a heavy debt load and the exit of CEO Scott Kauffmann earlier this month.
MDC reported a 2.8 percent second-quarter revenue decline to $380M and a plunge in net income to $1.1M from $8M. Organic growth dropped 1.7 percent.
Six-month revenue dropped 3.9 percent to $706.7M. Net loss widened to $30.1M from $1.7M.
In releasing the financials, Kauffmann had warned that 2018 "continues to be challenging."
MDC's stock price tumbled 60 percent over the past year, currently trading at $4.55 per-share.
The company is using investment firm LionTree to plot its future direction.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
Public Policy Holding Company registered 24.1 percent growth to a record $135M during the past year, which included the results of the March 1 acquisition of Multistate Assocs.
Stagwell CEO Mark Penn reported Q4 net revenues dipped 5.6 percent to $551.1M during a “challenging year for marketing services and digital transformation.”
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