Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 17

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 17
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 change0.4%0.4%3.0%3.7%

The increase in organic net revenue was primarily attributable to new clients and increased spending by existing clients in the consumer products and food and beverage sectors. The increase in net acquisitions (divestitures) was driven by the acquisition of Huskies.

Operating Income

Operating Income for the year ended December 31, 2024, was $41.5 million, compared to $43.2 million for the year ended December 31, 2023, representing a decrease of $1.7 million, primarily attributable to an increase in Cost of services and Office and general expenses, partially offset by an increase in Revenue.

The increase in Cost of services was primarily attributable to higher unbillable costs and staff costs, commensurate with the increase in revenue. 

The increase in Office and general expenses was primarily attributable to an increase in staff costs, commensurate with the increase in revenue, partially offset by a decrease in deferred acquisition consideration. 

Deferred acquisition consideration decreased $10.6 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liabilities associated with certain Brands.

41

Adjusted EBITDA decreased $2.9 million, primarily driven by an increase in Revenue, more than offset by an increase in expenses, as discussed above.

Communications Network

The components of operating results for the year ended December 31, 2024, compared to the year ended December 31, 2023, were as follows: 

Year Ended December 31,20242023Change(dollars in thousands)$%Revenue$515,140 $333,707 $181,433 54.4 %Operating ExpensesCost of services329,356 218,448 110,908 50.8 %Office and general expenses94,304 68,339 25,965 38.0 %Depreciation and amortization14,126 11,016 3,110 28.2 %$437,786 $297,803 $139,983 47.0 %Operating Income$77,354 $35,904 $41,450 NM

Year Ended December 31,20242023Change(dollars in thousands)$%Net Revenue$333,795 $245,261 $88,534 36.1 %Billable costs 181,345 88,446 92,899 NM