Stagwell Marketing Group reported a 1.8 percent dip in Q1 revenues to $181.2M and a 63.2 percent decline in net income to $4.6M due to a tough comparison to a political year and the continued impact of COVID-19 on operations.
Organic revenue declined 6.9 percent.
Stagwell attributes the bulk of its revenue decline to a drop in business from its digital content group, including its global travel marketing brand.
CEO Jay Leveton expects the recovery of the travel and entertainment business to “begin in earnest in Q2 with the successful rollout of the vaccines in the US.”
The communications, public affairs and advocacy group, which includes SKDKnickerbocker, Targeted Victory and Wye Communications, posted an $8.9M drop in Q1 revenues.
CFO Ryan Greene noted that Stagwell chalked up 10.2 percent Q1 EBITDA growth compared to a year ago. "However, when comparing the communications, public affairs and advocacy segment's Q1 results against Q1 2019, the most recent off-cycle period, and include pre-acquisition results, Stagwell reported 41 percent adjusted EBITDA growth," he said.