Stagwell Marketing Group LLC Reports on Its Exceptional Performance and Highlights Business and Financial Updates Provided in MDC Partners Filing

Stagwell Media LP, which on July 8, 2021 entered into an amendment to the transaction agreement providing for the combination of its businesses (the “Proposed Transaction”) with MDC Partners, Inc. (“MDC”) (Nasdaq: MDCA), announced today that its subsidiary, Stagwell Marketing Group LLC (“Stagwell” or the “Company”), has generated strong performance through the second quarter and expects continued outperformance through the remainder of the year. Accordingly, Stagwell has provided updated financial guidance to MDC and the Special Committee of its Board of Directors reflecting improved performance for the Stagwell business through the end of 2021.

Stagwell Partner Jay Leveton offered the following commentary on the Company’s performance in 2021 and the outlook for the remainder of the year:

“Stagwell’s second quarter 2021 results significantly out-performed our forecasts and we were significantly ahead of second quarter 2020 results even though 2021 is an ‘off-cycle year’ in terms of our political businesses. This quarter’s significant out-performance and exit momentum are the drivers for the improved guidance that we have provided to MDC, which is included in the supplement to the proxy statement/prospectus filed today by MDC.

“There was out-performance in all parts of our business, which were aided by the following trends:

• the secular shift to digital performance media buying and digital transformation, post pandemic;
• the increased need for clients to better understand their target audiences through market research and data analytics;
• companies prioritizing stakeholder communications (with investors, regulators, employees and ESG and DEI stakeholders) in earned and owned media channels; and
• growth in Stagwell-developed digital products, including the Harris SAAS brand tracking platform and online executive privacy offering.

“We have also seen significant improvement in our entertainment businesses with the return of theatrical entertainment along with continued growth in streaming content development this year. We have also seen our travel vertical begin to grow again as air travel has increased in the United States and we expect as other regions re-open, this will continue into next year.