Stagwell reported a three percent decline in Q1 revenues to $622M, a performance that CEO Mark Penn said was in line with management’s expectations due to the challenging business environment.
The firm also faced a tough comparison with the year ago quarter in which organic growth surged by 24 percent.
Organic net growth fell three percent during this year’s quarter.The US, which accounts for 80 percent of Stawell’s revenues, reported a 4.6 percent decline in organic growth. Organic growth in the UK (eight percent of revenues) jumped a 10.6 percent.
Stagwell posted a $5M net loss compared to a $33.6M profit in the 2022 period.
CFO Frank Lanuto said Stagwell is beginning to see positive signs, including strong new business wins and improving client conditions.
The company expects to return to double-digit growth in the later quarters of 2023.