MDC Partners reported a 6% revenue drop for the first quarter to $307.6 million. Organic revenue which excludes M&A and currency impact, fell 6.9%.
Despite the organic decline in Q1 MDC is forecasting a sharp recovery this year that will result in full year organic growth of between 7% and 9%, CEO Mark Penn said.
The company said the Q1 organic revenue drop was primarily due to reduced spending by clients in connection with COVID-19.
Net income attributable to MDC Partners common shareholders for the period was $0.9 million versus a net loss of $2.4 million for the first quarter 2020. The company attributed the increase to a reduction in expenses, as well as the favorable impact of foreign exchange.
Penn noted, “We continue to see a rebound from pandemic revenue lows, with year-over-year revenue growth in the Healthcare, Consumer Products and Financial client sectors. We are encouraged by the strong start to the year.”
Penn added that the company is well positioned for “the next major step in our strategic transformation, the proposed combination of MDC and Stagwell, which we believe promises to disrupt the industry and provide value for all our stakeholders.”
That merger is expected to be completed by mid-year. Stagwell is reporting separately on its first quarter later today.