If you’d suggested a couple of years ago that MDC Partners, which includes Anomaly, 72andSunny, KBS and CP+B, would show a clean pair of heels to its marcoms rivals you’d have been directed to the nearest rehab unit.
But, under new CEO Scott Kauffman (left) who replaced colourful founder miles Nadal a couple of years ago, it has.
For Q3 2017 it’s reported 7.6 per cent revenue growth to $375.8m with organic revenue growth of 7.8 per cent, way ahead of its admittedly much bigger rivals.
For the year so far the figures are $1.11bn with organic revenue rising a dizzying 8.4 per cent. Crucially it’s turning a profit too: $14.8m against least year’s loss of $54.9m, with EBITDA (earning before that pesky interest, tax, depreciation and amortisation) of $136m – which suggests decent profit growth may be on the cards.
CEO Kauffman says: “Our business delivered another strong quarter, highlighted by industry-leading organic revenue growth of 7.8 per cent, nearly $26 million of net new business, and increases in both Adjusted EBITDA and Adjusted EBITDA margin. We’re particularly pleased with our ongoing success securing high profile, global and integrated assignments for some of the world’s most iconic brands, demonstrating how our portfolio of world-class agencies continues to capitalize on the changing marketing and communications landscape. We’re very excited about the opportunity ahead of us.”
MDC has added significant new business from Carnival and IKEA.
Kauffman also says that “industry disruption” is helping the company as some major clients turn away from its holding company rivals with their dependence on media buying. It’s also interesting that a company mainly, although not wholly, focussed on creative agencies is outperforming its more diverse rivals.
MDC shares still trade at around $11 with the whole valued at less than $700m. Anomaly founder Carl Johnson reckons his agency is worth $600m. Can’t those acquisitive consultants add up?