Stagwell’s Mark Penn reports Q3 revenue fell 7 percent to $617.6M and net income declined to $653K from $10.6M a year ago.
He anticipates a return to growth over the next two quarters as tech spending perks up, and the entertainment and auto sectors rebound from strikes.
Penn is ready for a “strong 2024 as the political cycle kicks in again and as we introduce our cutting-edge AI products within the Stagwell marketing cloud.”
The company on Oct. 31 bolstered its balance sheet via the divestiture of ConcentricLife for $245M cash.
Penn called that integrated health marketing agency “a non-core asset.”
Stagwell followed up that divestiture with the $15M acquisition of Movers and Shakers LLC, provider of social media marketing solutions.
Penn expects Stagwell will report a 4 percent decline in organic net revenue for full-year 2023, an improvement from the Q3 7 percent dip.