Mark Penn’s Stagwell Group reported revenue of $181.2 million in the first quarter, down 1.8% from $184.5 million in Q1 2020. Net revenue, which strips out pass-through costs was $158.1 million, up 5.4% as compared to $150 million in 2020.
The organic revenue decline for the period was $12.8 million, or 6.9%.
While Stagwell reports strong growth from some of its digital capabilities, the company concedes a slower quarter was particularly dragged down by the travel and entertainment sectors.
Stagwell Partner Jay Leveton stated, “We expect the recovery of travel and entertainment to begin in earnest in Q2 with the successful rollout of the vaccines in the United States. The rest of the portfolio showed strong double-digit revenue … as our digital transformation & digital marketing, research for corporate and communications, public affairs, and advocacy offerings continue to resonate in the marketplace. We expect that momentum to continue through the remainder of 2021.”
The company did not offer specific earnings guidance for full-year 2021. By comparison, MDC Partners, also run by Penn and which is preparing to merge with Stagwell, is predicting a return to growth with 2021 organic growth of between 7% to 9%.
Stagwell’s Q1 net income stood at $4.6 million, down 63.2% from $12.5 million in the first quarter of 2020.
New business wins utilizing both companies included ConEd and Johnson & Johnson, while five shops within the MDC and Stagwell networks aligned to win Atlantic Broadband.
MDC Partners reported Q1 results earlier today.