Dentsu Revises Ad Outlook: 3.6% Gain
Like many of its Western counterparts, Tokyo-based agency holding company Dentsu said in its earnings statement released today that it is seeing
weakening demand for advertising in the second half of its current fiscal year, which ends March 31, 2013.
The year started on a positive note, the company stated, reporting that its first
fiscal quarter showed a strong upturn in advertising demand as the Japanese economy continued to recover from the devastating effects of last year’s earthquake and tsunami. That demand helped
boost the company’s first-half revenue to $11.5 billion, a gain of nearly 7% versus the prior-year first-half period. Net income was up nearly 17% to $117.4 million.
That said, the
company noted that “against the background of increasing uncertainty about the future of the global economy, advertising demand started to slow in the summer.”
As a result of the slackening demand, Dentsu said it has revised slightly downward its full-year fiscal 2012 outlook, and now predicts a 3.6% revenue gain to approximately $24.6 billion with net income of about $353 million, down about 5%.
The company confirmed that its agreement to acquire London-based marketing services firm Aegis Group will not close by the end of 2012, as initially anticipated. The
company now believes the deal will close by February 2013.
The push-back of the closing date is partly due to a delay in getting antitrust approval from China. A Dentsu rep confirmed last
week that all other antitrust clearances have been obtained, including approvals from the U.S., UK, Canada, Russia and several others.
There has been speculation that China may be playing
politics with the approval process, in light of a territorial dispute between the two countries over several islands in the East China Sea.
But Dentsu issued a statement Tuesday declaring
that the company and Aegis “remain in constructive dialog with” the Chinese regulatory body authorized to grant approval of the deal. “Dentsu and Aegis remain confident that the
scheme will become effective on or prior to 28 February 2013.” If the deal is not completed by then, either party can terminate the transaction without incurring a penalty.
Recent MediaDailyNews Articles
-
Broadcasters Sue AereoKiller In DC May 24, 5:21 p.m.
Confirming their efforts to follow over-the-top TV services with legal filings in any market where they ... -
Cigarette Marketers Slice Mag Spending In 2011 May 24, 4:52 p.m.
The five major cigarette marketers nearly cut in half their collective magazine spending in 2011. The ... -
B2B Revenues Rises, Credits Events, Digital Ads May 24, 4:45 p.m.
Overall, business-to-business media revenues are growing, due to an upward trend in B2B trade shows which, ... -
Court Dismisses Defamation Suit Against WPP's Sorrell May 24, 3:31 p.m.
A New York Court has dismissed a defamation lawsuit brought against WPP CEO Sir Martin Sorrell.Sorrell ... -
MediaCom Races To Win FIA E Championship's AOR May 24, 12:37 p.m.
A start-up race car circuit, The FIA E Championship, has named WPP’s MediaCom as its agency ... -
Networks Tie For Last Month of the 2012-2013 Season, NBC Gains Ground May 24, 10:56 a.m.
The four major networks were in a virtual tie for the last month of the 2012-2013 ... -
Aereo Is Not Just For Cord-Cutters May 23, 6:34 p.m.
Are cord-cutters most likely to subscribe to Aereo? Not necessarily, according to early returns. CEO Chet ... -
Cars.com Drops Flag On NASCAR.com Sponsorship May 23, 6:25 p.m.
Cars.com has a need for speed. The site has a deal with Turner to sponsor a ... -
Worldwide Pay TV On The Rise, Big Growth In Asia May 23, 4:17 p.m.
North American pay TV subscribers may continue to show little or no growth for the first ... -
Activision Blizzard's Campaign Wins Grand Effie May 23, 4:12 p.m.
Video game marketer Activision Blizzards’ ad campaign “The Vet and the nOOb” for "Call of Duty: ...
Be the first to comment on "Dentsu Revises Ad Outlook: 3.6% Gain"
Leave a Comment