World Cup, New Business Boost Dentsu Results

Dentsu reported a revenue gain of nearly 10% for its first quarter 2015 fiscal period (April 1-June 30), which equates to about $1.3 billion at today’s exchange rate. Organic revenue growth for the Dentsu Aegis Network (which includes markets outside Japan) was 9.6%.

The Tokyo-based holding company said that results were helped by improvements in both the Japanese and U.S. economies, although “the global economy remained uncertain due to concerns about the economic slowdown in emerging economies and continuing political unrest.”

The company said that performance in the quarter was helped by the FIFA World Cup and new client wins at Dentsu Aegis Group, which included the $1 billion-plus Microsoft media planning, buying and search advertising assignment.

The firm reported that Dentsu Aegis Network achieved 10.6% organic growth in the Europe, Middle East and Africa region, 4.7% growth in the Americas and 14.8% growth in the Asia-Pacific region.

The company reported a first-quarter net loss of approximately $7.2 million, in part due to amortization of goodwill incurred through acquisitions including the company’s 2013 purchase of London-based Aegis Group.

The firm said its advertising operations (the vast majority of its business) posted a 10.6% revenue gain with segment income of about $2.4 million versus a loss of approximately $6.4 million a year ago.

For the full fiscal year, Dentsu has forecast a 4.9% revenue gain to about $6.1 billion with a profit drop of about 20% to roughly $304 million. 

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