Dentsu Aegis Network Achieves 10% Organic Growth

Tokyo–based Dentsu reported a 9.8% revenue gain for the first nine months of the holding company’s fiscal year 2015 (April 1-Dec. 31, 2014) to approximately $3.8 billion.

The company’s businesses outside of Japan, which are organized under the Dentsu Aegis Network banner, collectively achieved organic revenue growth of 10.3%, the holding company said. That growth (which excludes the impact of acquisitions, divestitures and currency fluctuations) was achieved primarily by the acquisition of new clients, the firm said.

By region, Dentsu Aegis achieved 9.3% organic growth in Europe, The Middle East & Africa; 7.7% in the Americas, and 15.2% in Asia-Pacific markets.

Operating income for the period was down nearly 15%, largely the result of the depreciation of the yen, Dentsu said. But net income was up 23.8% due the sale of real estate during the period.

The holding company noted that during the April-December 2014 period, the Japanese economy “maintained a gradual recovery…Meanwhile, the U.S. economy is making steady progress, as are other major markets around the world.” But the company cautioned that “economic uncertainty remains in some regions, illustrated by slowing growth in a number of emerging economies and continuing political unrest in certain regions.”



The company also said it was reducing its operating income forecast for the full year by a little more than 5%. “Although Dentsu’s overseas business is steady, it’s domestic business, when looked at on a non-consolidated basis in particular, is expected to fall below the original forecast.” 

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