Stagwell posts 24.5% growth in first-quarter financial results
US challenger network Stagwell has released its financial results for the first quarter of 2022. The firm, which owns companies such as Assembly, Anomaly and 72andSunny, reported organic growth of 24% in the first three months of the financial year.
Mark Penn’s Stagwell Inc has released its financial performance for the first quarter
During the last three months, it acquired e-commerce shop Brand New Galaxy and multicultural marketing agency Dyversity; last year it merged with agency network MDC Partners and significantly increased its size.
In a statement Mark Penn, chairman and chief executive officer of Stagwell, said: “While the GDP may be contracting, Stagwell is growing stongly. The merger has spurred revenue synergies immediately apparent in the big wins, significant industry awards and integration of talent and technology across our network.”
What do the results show?
Net revenue was $527m in Q1, with $54m coming in from new business wins signed during the quarter – 24.5% higher than the first quarter of 2021. Stagwell’s EBITDA (earnings before interest, taxes, deprecation and amortization) reached $101m, representing a margin of 19.3% – an increase of 34% on the same period last year.
Penn continued: “We grew first-quarter net revenue 24% v the prior year, more than double the pace of legacy holding companies, and grew adjusted EBITDA at an even faster rate of 34% year-on-year. Our record quarter continues to build on our post-combination track record of delivering growth, free cash flow and growing profitability.”
Which sectors performed best?
Creativity and comms agencies within the Stagwell network accounted for the biggest chunk of revenue (44%), with 29% of revenue coming from its digital transformation practices – a growing area for many agencies, and one that Stagwell has invested heavily in over recent years.
Penn indicated that the acquisition of Brand New Galaxy would deepen its commitment to that sector. Stagwell agencies operate in 24 countries worldwide and employ over 10,000 staff.