Dentsu Reports 8.1% Q1 Organic Growth

Dentsu Group reported a 14.9% gain in revenue to a little more than 172 billion Japanese yen--about $1.37 billion at today’s exchange rates--for the company’s first quarter of its fiscal year 2015 (three months ended June 30).

For the same period the company reported organic gross profit growth of 8.1%. 

Net profits were up nearly 75% to more than 6.8 billion yen (approximately $55 million). 

The company’s reporting structure is different than the other holding companies, making it hard to compare them.

Dentsu’s Japanese holdings (Dentsu) use a fiscal year that begins April 1, while its international operations (Dentsu Aegis Group) report based on the calendar year. The Group’s first quarter results include financials for the Japan businesses for the April-June period and Dentsu Aegis Network results for the January-March period. 

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Q1 Organic growth in Japan was 1.9%, which the company attributed in part to a tough comparison to the same period a year ago when the region benefited from client marketing efforts during the 2014 FIFA World Cup. 

Outside Japan Dentsu Aegis Network achieved organic growth of 10.2% during the April-June period and 11.8% for the January-June period. In the Americas, the comparable organic growth rates were 7.9% and 9.1% respectively.  

More on the company's financial results can be found here

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