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| Mark Penn |
Stagwell’s 2Q revenues slipped 6 percent to $632.3M and fell 5.3 percent on an organic basis.
CEO Mark Penn said Stagwell is “facing headwinds caused by economic uncertainty and especially tech client reorganizations, the effects of which we believe are temporary.”
He is bullish on the second-half and all of 2024.
“We are beginning to see a return to a more normal business environment, and the emergence of Generative AI is providing a runway for future work that we believe will explode in the next 12 to 18 months.”
The company posted a $10.2M net loss during the quarter vs. a $24.5M year ago profit.
Stagwell owns Allison+Partners, SKDK, Sloane & Co., KWT Global and Hunter.
Stagwell registered an eight percent rise in Q1 revenues to $670M and a $1.3M net loss compared to a $1.4M profit last year.
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
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.
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