Dentsu Reports Nearly 14% First-Half Revenue Gain

The Dentsu Group reported a first-half fiscal 2015 revenue gain of 13.6% to 373.9 billion Japanese yen, or approximately $3.04 billion at today’s exchange rate.

Those results include revenues for the company’s Japanese holdings for the six-month period ended September 30 and revenues for its international businesses, operated under the Dentsu Aegis Network umbrella for the six months ended June 30.

The different reporting periods make comparisons difficult, but the company said it is in the process of realigning its reporting structure and will have a single fiscal year for all of its operations by the end of 2015.

Currently, Dentsu Inc. (the Japanese operations) has a fiscal year beginning April 1, while DAN’s financial year begins in January. Dentsu acquired Aegis Group a few years ago, which reported results on a calendar-year basis and which became the core of DAN.

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Dentsu Aegis Network posted organic gross profit growth — which it defines as revenue less direct costs — of 10% for the nine- month period from January through September of this year, including organic growth of 6.6% for the third quarter.

In the Americas, organic growth was down sharply in Q3 — to just 0.1% — versus growth of 7.9% in Q2 of this year and versus 12.8% in the third quarter of 2014. Third-quarter 2015 growth was significantly higher in other regions, including an 11% spurt in Europe, Middle East and Africa and a 9.3% spike in Asia Pacific (outside of Japan).

So far in 2015, DAN has won more than $2 billion in net new business, including a big chunk of the Mondelez International global media assignment that was awarded last month.

Dentsu does not break out organic revenue growth, so it is hard to compare its growth (based on gross profits) to the other holding companies.

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