By 
Stagwell, which now includes the former MDC, an advertising holding company that previously struggled to be profitable, alongside various tech-based ventures, is showing signs of a financial turnaround after a challenging 2023. The business, which counts well-known creative agencies Anomaly and 72&Sunny among its assets, is edging closer to profitability.
In the first quarter, Stagwell reported a net loss of only $1.3 million, with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of a respectable $90 million. Organic growth for the quarter rose by 8%, with a 5% increase projected for the entire year.
Tech clients, who were widely seen as contributing to agency shortfalls in late 2023 and early 2024, have apparently returned to Stagwell.
The company’s Chairman and CEO expressed optimism, stating, “We are on track for 2024 with a return to growth and significant margin expansion, driven by the double-digit growth of the Performance Media & Data Capability. We are seeing the benefits of new business wins, overall growth in advertising, and an improved market position, bolstered by growing industry recognition of our work.
“We continue to invest in technology, with the Stagwell Marketing Cloud leading the way in innovation. We anticipate growth in AI-related digital transformation projects in the second half of the year, along with a strong advocacy season. At the same time, we are successfully expanding our global presence, which is contributing to our enhanced growth.”
Stagwell has recently established a European headquarters in London, which is helping the company compete for larger accounts. The company made an unsuccessful approach to acquire Sir Martin Sorrell’s S4 Capital last year.
While ad holding companies often invest in tech and attempt to reposition themselves as tech-focused, Penn’s deep grounding in technology might be the key to the expanded Stagwell’s future success.