MDC reports Q4 loss despite revenue bump
February 28, 2012 | Canadian Press | Comments
MDC Partners Inc. swung to a big loss in the fourth quarter despite a 20% increase in revenue, the marketing and consulting service provider said Monday.
MDC said its net loss in the three months ended Dec. 31 was US$57.7 million or US$1.97 per share, compared with a profit of US$11.5 million or 40 cents per share in the same 2010 period.
Among other things, the company reported an increase in the cost of services sold to US$181.5 million from $140.7 million, while office and general expenses rose to US$66.9 million from $36.9 million.
Consolidated revenue grew to US$254.3 million from US$211 million in the fourth quarter of 2010.
“In the fourth quarter, we invested significantly in our business which, along with the previous investments and acquisitions we made over the last 18 months, enabled us to create a $1-billion platform with significant infrastructure built for growth,” chairman and CEO Miles Nadal said in a statement accompanying the results.
With operations in the United States, Canada, Europe and the Caribbean, MDC provides a range of marketing communications and consulting services, including advertising, interactive and mobile marketing, direct marketing, sales promotion, corporate communications, market research and the like.