Characterizing the results as “slightly below expectations,” Dentsu, the Tokyo-based agency holding company, reported a 6% revenue gain for the first nine months of its
current fiscal year to about $3 billion with a net income gain of 50% to roughly $250 million.
The company said that during 2012, the Japanese economy showed a “gradual recovery” compared to the prior year when Japan was hit by a devastating earthquake and tsunami. But the broader global economy remained uncertain, Dentsu said, given continuing economic woes in the Euro Zone and a slowdown in China and other emerging countries.
The holding company said that advertising demand started to slow down in the summer. That slowdown was offset somewhat by the company’s efforts to offer clients “integrated communication design solutions,” as well as by big events, such as the London Olympics and the Toyota-sponsored FIFA Club World Cup Japan 2012.
The company said the full-year outlook remains unchanged and that it expects billings growth to be about 2.5%, while its net income will climb nearly 53%. No full-year revenue guidance was provided.
The company said that as of Friday, it had not closed its pending acquisition of Aegis Group. Earlier, Dentsu indicated that all regulatory approvals with the exception of China had been obtained and that it expected to close the Aegis deal by the end of this month.