MDC, Dentsu Aegis revenues slip in Q2

But both holding companies found reasons to be optimistic.
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Both MDC and Dentsu Aegis reported lacklustre Q2 results this week, but there were some bright spots for the networks.

Q2 revenue at MDC decreased 4.6%, with organic revenue down 2.4%. That follows a lacklustre Q1, where revenue growth was flat at 0.6%, with organic revenue slipping 0.9%.

In an investor presentation, the holding company said the declines were expected, citing “a combination of cycling through previous losses” with dispositions and the impact of foreign exchange rates. It expects improved revenue growth for the remainder of 2019: net new business wins in Q2 totaled $43 million, which, when combined with an $11.7 million net new business loss in Q1, put the company at $31.3 million net new business wins for the year so far. The company also pointed to cost cutting measures that resulted in year-over-year adjusted EBITDA growth of 7.9% as reasons to be optimistic for the rest of 2019.

MDC also said it is continuing with its two-year strategic plan, which will include reorganizing its offerings, capitalize on its strengths and enhance its go-to-market strategy, overseen by recently named CEO Mark Penn. As part of that plan, MDC merged MDC Media Partners (including media agency Assembly) with data, technology and CRM agency Gale last month. The move, aimed to align media strategy and planning with data and CRM expertise, created a network with offices in Toronto, New York, Detroit, Los Angeles, Austin, Singapore and Bengaluru.

Other MDC agencies in Canada include Anomaly, Union, Forsman & Bodenfors, Veritas, KWT and The Media Kitchen.

Over at Dentsu Aegis, the company reported a 1.3% decline in organic growth globally, but had a positive organic growth of 2.8% in the Americas region.

The company said it had strong performances in the U.S. and Canada, partially offset by a weak quarter in Brazil. In particular, Dentsu saw strong performance from its North American media offerings, which include Vizeum, Carat and data-driven offering iProspect. Other Dentsu Aegis agencies in Canada include DentsuBos, Grip and Isobar.