Stagwell posts strong Q3 growth, driven by digital gains
By Felicia Nwosu
Stagwell has reported an 8% increase in net revenue for the third quarter, reaching $580 million, with organic growth, which excludes mergers, acquisitions, and currency impacts, also at 8%. The company’s Q3 growth significantly outpaced the first-half increase of 1.2%, a rise Stagwell credits to recent major client wins and strong performance across key divisions.
Year-to-date, Stagwell’s net revenue is up 4%, totaling $1.7 billion, with organic growth maintaining the same rate. The company reaffirmed its full-year organic growth outlook in the range of 5% to 7%.
“New client momentum, robust digital transformation results, and a record-breaking political season reinforce our strategy’s appeal to clients and set the foundation for a solid finish to the year,” said Stagwell CEO Mark Penn.
Stagwell reported $101 million in net new business revenue in Q3, contributing to $345 million in new business over the past 12 months. Recent client acquisitions include high-profile brands such as Adobe, Microsoft, and United Airlines.
The integrated agency network division reported 5.3% organic growth in Q3, with a year-to-date growth figure of 0.5%. In the U.S. market, which represents over 75% of Stagwell’s business, organic growth reached 10.8% in Q3 and 5.2% for the first nine months of the year.
According to the report by Mediapost, digital services remained a key revenue source, making up 57% of the company’s earnings in the third quarter.
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