MDC Partners reported Monday that consolidated revenues for 2014 were up 15.2% to $1.22 billion. Organic revenue growth was 10.8% and net new business wins added revenue of $162.7 million, an increase of 27.9% over 2013.
The new business was awarded by marketers such as Infiniti, Johnny Walker, and InBev's Corona in Brazil. The company noted that those companies are international clients with broad portfolios that could lead to further account expansion for MDC.
Meanwhile, the company’s net loss attributable to MDC Partners narrowed sharply to $24.1 million from $148.9 million in 2013.
"Our partner firms continue to outperform their competition, as demonstrated by the record amount of net new business won during the year,” said company CEO Miles Nadal. “And we made solid progress on the areas of our targeted growth, including media and international," he added.
Revenue in the fourth quarter was up 17.5% to $339.9 million with organic growth of 12.5%. The net new business revenue total in Q4 was $56.7 million.
The company remains opportunistic on the acquisitions front, with $50 million-$100 million earmarked for M&A in 2015.
MDC does expect some challenges due to anticipated volatility of foreign currency movements as well as the timing associated with the ramp-up of recent new business. As such, MDC is currently forecasting revenues to increase 6.5% to 8.5% in 2015 with organic growth of 7% to 9%. "We expect adjusted [earnings before interest, taxes, depreciation and amortization] to increase 8.7% to 14.3%” for 2015 said company CFO David Doss. That implies modest profit margin improvement (less than 1%) but “keeping us on track to achieve our margin target of 17% to 19% within 3 to 5 years.”