MDC Partners Reports Annual Revenue Dip Despite Best New Business Run in 4 Years

Net new business totaled $93.6 million last year

mdc-partners-content-2020 — A letter from Indaba managing partner Derek Schrier claimed that MDC and Stagwell chief Mark Penn had "all the incentives to root for Stagwell" and that he could "make a fortune" from the merger.MDC Partners

MDC Partners has reported less-than-stellar fourth-quarter earnings, capping off a tumultuous year for the holding company.

Organic revenue for the fourth quarter of 2019 decreased by 1.5%. For the full year, organic revenue was down 3.1%, in line with expectations of a 3-5% downturn. The company expects organic revenue to grow by 2-4% in 2020.

While overall organic revenue was down for the fourth quarter, the company said its “specialty communications segment,” which includes public relations firms KWT Global and Allison+Partners, experienced 15% organic growth.

The earnings come amid CEO and chairman Mark Penn’s turnaround strategy, which began last year after his private equity firm Stagwell Group invested $100 million into the struggling holding company.